NOV Inc. (NOV)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	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	3.47	3.04	2.63	2.29
Receivables turnover	4.51	4.19	4.24	4.31	4.16	4.12	3.88	3.97	4.18	4.17	4.27	4.31	4.78	5.10	5.18	4.48	4.57	4.78	4.37	4.80
Payables turnover	7.47	7.06	6.29	6.37	6.52	7.22	6.93	7.76	7.76	9.30	9.35	10.90	11.57	12.96	12.41	11.49	10.68	10.78	10.80	10.58
Working capital turnover	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	2.19	2.03	1.90	1.78

The activity ratios of NOV Inc indicate how effectively the company is managing its resources and operating cycle.

1. Inventory Turnover: This ratio measures the number of times inventory is sold and replaced during a specific period. NOV Inc's inventory turnover has been relatively stable, ranging from 2.87 to 3.26 over the past eight quarters. A higher inventory turnover ratio suggests efficient management of inventory levels.

2. Receivables Turnover: This ratio indicates how quickly the company collects cash from its credit sales. NOV Inc's receivables turnover has shown consistency, with values ranging from 4.12 to 4.51. A higher turnover ratio reflects prompt collection of receivables, which is favorable for cash flow.

3. Payables Turnover: This ratio measures how quickly a company pays its suppliers. NOV Inc's payables turnover has fluctuated between 6.06 and 7.76. A lower ratio may suggest the company is taking longer to pay its suppliers, potentially indicating improved cash flow management.

4. Working Capital Turnover: This ratio evaluates the efficiency of utilizing working capital to generate revenue. NOV Inc's working capital turnover has shown an increasing trend, indicating improved efficiency in utilizing working capital over time.

Overall, NOV Inc's activity ratios suggest effective management of inventory, receivables, payables, and working capital to optimize operational performance and cash flow.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	116.31	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	105.04	119.98	139.02	159.06
Days of sales outstanding (DSO)	days	81.01	87.02	86.09	84.73	87.71	88.67	94.15	91.83	87.29	87.59	85.40	84.63	76.36	71.61	70.41	81.43	79.85	76.39	83.50	76.12
Number of days of payables	days	48.88	51.67	57.99	57.31	56.02	50.56	52.69	47.02	47.03	39.24	39.05	33.49	31.56	28.17	29.42	31.76	34.19	33.86	33.81	34.49

To analyze NOV Inc's activity ratios, we will look at three key metrics: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
NOV Inc's average DOH over the past eight quarters has ranged from 112.10 days to 127.20 days. The Q4 2023 DOH of 116.31 days indicates that the company had sufficient inventory to support its sales for approximately 116 days. A decreasing trend in DOH is generally positive as it suggests efficient management of inventory levels.

2. Days of Sales Outstanding (DSO):
NOV Inc's DSO has fluctuated between 84.73 days and 94.15 days over the past eight quarters. The Q4 2023 DSO of 81.01 days indicates that the company takes about 81 days on average to collect its accounts receivables. A decreasing trend in DSO is favorable as it signifies a faster conversion of sales into cash.

3. Number of Days of Payables:
The number of days of payables for NOV Inc has ranged from 47.02 days to 57.99 days over the past eight quarters. The Q4 2023 payables period of 48.88 days suggests that the company takes approximately 49 days to pay its suppliers. A longer payables period may indicate favorable credit terms with suppliers, but it is essential to manage payables effectively to maintain relationships.

In summary, NOV Inc has shown variations in its activity ratios over the past quarters. Monitoring and managing these ratios effectively can help the company optimize its working capital management and overall financial performance.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	4.60	4.51	4.36	4.22	4.06	3.80	3.48	3.22	3.03	2.92	2.87	2.88	3.16	3.53	3.87	4.20	3.60	3.64	3.66	3.30
Total asset turnover	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	0.64	0.61	0.60	0.43

The fixed asset turnover ratio for NOV Inc has shown a consistent increasing trend over the past eight quarters, indicating that the company is generating more sales revenue per dollar of fixed assets invested. This suggests improved efficiency in utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also been increasing gradually, indicating that NOV Inc is generating more sales revenue per dollar of total assets. This reflects the company's ability to efficiently utilize all its assets to generate sales, which is a positive sign for the company's operational efficiency and asset utilization.

Overall, both the fixed asset turnover and total asset turnover ratios demonstrate an improving trend, reflecting positive operational performance and effective asset management by NOV Inc.