NOV Inc. (NOV)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,583,000 | 8,313,000 | 8,017,000 | 7,651,000 | 7,237,000 | 6,681,000 | 6,133,000 | 5,823,000 | 5,524,000 | 5,334,000 | 5,377,000 | 5,456,000 | 6,090,000 | 7,044,000 | 7,786,000 | 8,422,000 | 8,479,000 | 8,596,000 | 8,624,000 | 8,598,000 |
| Total current assets | US$ in thousands | 5,840,000 | 5,658,000 | 5,610,000 | 5,422,000 | 5,493,000 | 5,179,000 | 5,093,000 | 4,949,000 | 4,902,000 | 4,939,000 | 4,908,000 | 4,996,000 | 5,209,000 | 5,376,000 | 5,590,000 | 5,902,000 | 6,113,000 | 6,515,000 | 6,766,000 | 6,938,000 |
| Total current liabilities | US$ in thousands | 2,435,000 | 2,369,000 | 2,385,000 | 2,308,000 | 2,437,000 | 2,247,000 | 2,171,000 | 1,979,000 | 1,910,000 | 1,853,000 | 1,810,000 | 1,934,000 | 1,867,000 | 1,884,000 | 1,954,000 | 2,163,000 | 2,247,000 | 2,276,000 | 2,221,000 | 2,103,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,583,000K ÷ ($5,840,000K – $2,435,000K)
= 2.52
NOV Inc's working capital turnover has been relatively stable over the past eight quarters, ranging from 1.96 to 2.53. Working capital turnover measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support sales activities.
The increasing trend in NOV Inc's working capital turnover from Q1 2022 to Q3 2023 suggests an improvement in the company's ability to convert working capital into sales. This could be driven by better inventory management, efficient accounts receivable collection, or optimized accounts payable practices.
Overall, NOV Inc's consistent working capital turnover above 2 indicates that the company is efficiently leveraging its working capital to support its operations and generate revenue. This can be a positive sign of financial health and effective working capital management within the organization.
Peer comparison
Dec 31, 2023