NOV Inc. (NOV)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,583,000 | 7,237,000 | 5,524,000 | 6,090,000 | 8,479,000 |
| Total assets | US$ in thousands | 11,294,000 | 10,135,000 | 9,550,000 | 9,929,000 | 13,149,000 |
| Total asset turnover | 0.76 | 0.71 | 0.58 | 0.61 | 0.64 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,583,000K ÷ $11,294,000K
= 0.76
NOV Inc's total asset turnover has shown a fluctuating trend over the past five years. The ratio measures how efficiently the company generates revenue from its total assets.
In 2023, the total asset turnover increased to 0.76 from 0.71 in 2022, indicating that the company was able to generate more revenue per dollar of assets. This improvement suggests an enhanced efficiency in asset utilization in the most recent year.
Compared to 2021, where the ratio was 0.58, the company exhibited a notable increase in 2023, reflecting a significant improvement in utilizing its assets to generate sales revenue.
In 2020 and 2019, the total asset turnover was 0.61 and 0.64, respectively, showing a relatively stable performance in those years.
Overall, the increasing trend in the total asset turnover ratio over the past two years indicates that NOV Inc has potentially enhanced its operational efficiency in utilizing its assets to generate revenue. However, further analysis and comparison with industry averages and competitors may provide more insights into the company's asset management efficiency.
Peer comparison
Dec 31, 2023