NOV Inc. (NOV)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	3.48	3.18	3.13	3.03	3.14	2.87	2.88	3.01	3.26	3.18	3.28	3.47	3.57	3.64	3.72	3.75	4.02	3.53	3.58	3.74
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	2.59	2.46	2.47	2.57	2.52	2.53	2.49	2.46	2.37	2.28	2.10	1.96	1.85	1.73	1.74	1.78	1.82	2.02	2.14	2.25

Based on the provided data for NOV Inc., we can analyze the activity ratios as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory over a period. NOV Inc.'s inventory turnover has been relatively stable over the years, ranging from 2.87 to 3.48. A higher inventory turnover ratio indicates efficient management of inventory, meaning the company is effectively selling its products.

2. Receivables Turnover:
- Unfortunately, the data does not provide information on the receivables turnover ratio for NOV Inc. This ratio indicates how efficiently a company is collecting on its credit sales, and its absence limits our ability to assess the company's effectiveness in collecting receivables.

3. Payables Turnover:
- Similarly, data for payables turnover is not available, which would have helped in understanding how quickly the company pays off its suppliers or trade payables.

4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively a company is using its working capital to generate revenue. NOV Inc.'s working capital turnover has shown a positive trend, increasing from 1.82 to 2.59. This indicates that the company is using its working capital more efficiently to support its operations and generate sales.

In summary, NOV Inc. has demonstrated a stable inventory turnover and an improving trend in working capital turnover, hinting at efficient management of resources and operations. However, the absence of data for receivables and payables turnover limits a comprehensive assessment of the company's overall efficiency in managing its working capital and operating cycle.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	104.81	114.63	116.55	120.57	116.30	127.20	126.64	121.43	112.10	114.63	111.18	105.31	102.28	100.17	98.14	97.31	90.86	103.26	102.07	97.47
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the data provided, we can analyze the activity ratios of NOV Inc. as follows:

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures the number of days it takes for a company to turn its inventory into sales.
- NOV Inc.'s DOH has been fluctuating over the years, ranging from a low of 90.86 days to a high of 127.20 days.
- An increasing trend in DOH may indicate slower-moving inventory or potential issues with inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- The DSO ratio is not available in the provided data, which indicates that information regarding the number of days it takes for NOV Inc. to collect its accounts receivable is not accessible.
- DSO is important for assessing the efficiency of the company's credit and collections policies.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables for NOV Inc. is not available in the provided information.
- Payables turnover is crucial for evaluating the company's management of its accounts payable and cash flow efficiency.

In conclusion, while the analysis of NOV Inc.'s inventory management based on the DOH ratio can provide insights into the efficiency of its operations, the lack of data on DSO and payables turnover limits a more comprehensive assessment of the company's overall activity ratios. Additional information would be required to make a more detailed evaluation of NOV Inc.'s working capital management and operational efficiency.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	—	—	—	—	—	3.48	3.36	4.22	3.15	2.94	2.69	3.22	2.34	2.24	2.22	2.88	3.16	3.53	3.87	4.20
Total asset turnover	0.78	0.78	0.79	0.78	0.76	0.79	0.77	0.75	0.71	0.68	0.63	0.61	0.58	0.56	0.56	0.56	0.61	0.69	0.75	0.79

The fixed asset turnover ratio of NOV Inc. has shown a decreasing trend from 4.20 in March 2020 to 2.94 in September 2022, before rebounding to 3.15 by December 2022. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales.

In comparison, the total asset turnover ratio of NOV Inc. has been relatively stable, hovering around 0.56 to 0.68 from March 2020 to September 2022. This ratio indicates how well the company is generating sales from all its assets.

Overall, despite fluctuations in the fixed asset turnover ratio, the total asset turnover ratio has not varied significantly during the period analyzed. It suggests that NOV Inc. has been able to maintain a consistent level of sales relative to its total assets over time.