NOV Inc. (NOV)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,230,000 | 816,000 | 1,069,000 | 1,591,000 | 1,692,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 51,000 |
| Total current liabilities | US$ in thousands | 2,347,000 | 2,435,000 | 2,437,000 | 1,910,000 | 1,867,000 |
| Cash ratio | 0.52 | 0.34 | 0.44 | 0.83 | 0.93 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,230,000K
+ $—K)
÷ $2,347,000K
= 0.52
The cash ratio of NOV Inc. has shown a declining trend over the past five years. Starting at 0.93 on December 31, 2020, the ratio decreased to 0.83 by December 31, 2021, further dropping to 0.44 by December 31, 2022. This downward trajectory continued with a ratio of 0.34 on December 31, 2023, before experiencing a slight increase to 0.52 by December 31, 2024.
The decreasing trend in the cash ratio indicates a potential deterioration in the company's ability to cover its short-term obligations solely with its available cash and cash equivalents. It is essential for NOV Inc. to closely monitor and manage its liquidity position to ensure it can meet its financial obligations in a timely manner. Further analysis of the company's cash management practices and overall financial health may be warranted to address the declining cash ratio trend.
Peer comparison
Dec 31, 2024