NOV Inc. (NOV)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,870,000 | 8,583,000 | 7,237,000 | 5,524,000 | 6,090,000 |
| Total assets | US$ in thousands | 11,361,000 | 11,294,000 | 10,135,000 | 9,550,000 | 9,929,000 |
| Total asset turnover | 0.78 | 0.76 | 0.71 | 0.58 | 0.61 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,870,000K ÷ $11,361,000K
= 0.78
The total asset turnover ratio of NOV Inc. has shown fluctuations over the past five years. In 2020, the total asset turnover was 0.61, indicating that the company generated $0.61 in sales for every dollar of assets it had. The ratio slightly decreased to 0.58 in 2021, suggesting a potential inefficiency in asset utilization.
However, there was a positive turnaround in the subsequent years, with the total asset turnover increasing to 0.71 in 2022, 0.76 in 2023, and further improving to 0.78 in 2024. These improvements signify that NOV Inc. became more effective in utilizing its assets to generate sales revenue.
Overall, the increasing trend in total asset turnover reflects a positive sign of efficiency in utilizing the company's assets to generate revenue over the years. The management's efforts in improving asset utilization have led to a more efficient operation and potentially better financial performance.
Peer comparison
Dec 31, 2024