NOV Inc. (NOV)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,230,000 | 985,000 | 827,000 | 468,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 50,000 | 45,000 | 47,000 | 51,000 | 59,000 | — | — |
| 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 |
| Cash ratio | 0.52 | 0.43 | 0.37 | 0.21 | 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 |
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 some fluctuations over the years, ranging from a low of 0.21 to a high of 0.93. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents on hand. A higher cash ratio indicates a stronger liquidity position, as the company has more liquid assets relative to its current liabilities.
From the data provided, we can see that NOV Inc.'s cash ratio peaked at 0.93 in December 31, 2020, indicating a strong ability to cover its short-term obligations with its available cash. However, the cash ratio has experienced some decline since then, reaching a low of 0.21 in March 31, 2024. This downward trend could raise concerns about the company's liquidity position and its ability to meet its short-term liabilities.
Overall, NOV Inc.'s cash ratio demonstrates some variability over the years, highlighting the importance of closely monitoring the company's cash position and liquidity management to ensure it can meet its financial obligations in a timely manner.
Peer comparison
Dec 31, 2024