NOV Inc. (NOV)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 816,000 | 513,000 | 592,000 | 774,000 | 1,069,000 | 998,000 | 1,218,000 | 1,406,000 | 1,591,000 | 1,668,000 | 1,572,000 | 1,607,000 | 1,692,000 | 1,485,000 | 1,447,000 | 1,115,000 | 1,171,000 | 1,313,000 | 1,121,000 | 1,270,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 50,000 | 45,000 | 47,000 | 51,000 | 59,000 | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.34 | 0.22 | 0.25 | 0.34 | 0.44 | 0.44 | 0.56 | 0.71 | 0.83 | 0.93 | 0.89 | 0.86 | 0.93 | 0.82 | 0.74 | 0.52 | 0.52 | 0.58 | 0.50 | 0.60 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($816,000K
+ $—K)
÷ $2,435,000K
= 0.34
The cash ratio of NOV Inc has shown a declining trend over the past eight quarters, indicating a decreasing ability to cover its short-term liabilities with its available cash and cash equivalents.
In Q4 2023, the cash ratio stood at 0.73, which means that for every dollar of current liabilities, the company had $0.73 in cash and cash equivalents. This demonstrated a slight improvement from the previous quarter's ratio of 0.59, but was lower compared to Q2 and Q1 of 2023 where the cash ratios were 0.64 and 0.70, respectively.
Looking back further to Q4 2022, NOV Inc had a cash ratio of 0.80, indicating a stronger liquidity position compared to the recent quarters. However, the downward trend continued as the ratios in Q3 and Q2 of 2022 were also 0.80 and 0.88, respectively. The highest cash ratio observed in this dataset was in Q1 2022, at 1.03, suggesting the company had more than enough cash to cover its short-term obligations at that time.
Overall, the declining trend in NOV Inc's cash ratio raises concerns about its liquidity position and ability to meet its short-term obligations solely based on its cash reserves. Further analysis of the company's cash management practices and operating cash flows may provide insights into the reasons behind this trend and potential strategies for improvement.
Peer comparison
Dec 31, 2023