NOV Inc. (NOV)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,869,000 | 8,899,000 | 8,893,000 | 8,770,000 | 8,578,000 | 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 |
| Total current assets | US$ in thousands | 5,770,000 | 5,918,000 | 5,844,000 | 5,688,000 | 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 |
| Total current liabilities | US$ in thousands | 2,347,000 | 2,300,000 | 2,242,000 | 2,272,000 | 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 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,869,000K ÷ ($5,770,000K – $2,347,000K)
= 2.59
The working capital turnover ratio of NOV Inc. has shown a fluctuating trend over the past few years, ranging from a low of 1.73 in September 2021 to a high of 2.59 in December 2024. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue, with higher values indicating better efficiency.
From March 2020 to December 2020, the ratio decreased steadily from 2.25 to 1.82, suggesting a potential decrease in the company's ability to generate sales relative to its working capital. However, the ratio started to show signs of improvement in the following periods, gradually increasing to reach 2.59 by December 2024.
Overall, a working capital turnover ratio above 1 indicates that NOV Inc. is effectively utilizing its working capital to generate sales. The increasing trend in the ratio from 2021 to 2024 suggests an improvement in the company's operational efficiency and ability to turn its working capital into revenue. It is essential for NOV Inc. to maintain this positive trend to continue effectively utilizing its working capital resources.
Peer comparison
Dec 31, 2024