NOV Inc. (NOV)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	5,840,000	5,493,000	4,902,000	5,209,000	6,113,000
Total current liabilities	US$ in thousands	2,435,000	2,437,000	1,910,000	1,867,000	2,247,000
Current ratio		2.40	2.25	2.57	2.79	2.72

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,840,000K ÷ $2,435,000K
= 2.40

NOV Inc's current ratio has shown a decreasing trend over the past five years, from 2.72 in 2019 to 2.40 in 2023. The company's current ratio indicates that it had $2.40 in current assets for every $1 of current liabilities as of December 31, 2023. While the current ratio is still above 1, suggesting that NOV Inc has more than enough current assets to cover its short-term obligations, the decreasing trend raises some concerns about the company's liquidity position.

A ratio above 1 generally indicates that a company is able to meet its short-term obligations using its current assets. A current ratio of 2.40 indicates that NOV Inc has a relatively strong liquidity position, but the decreasing trend over the years may suggest potential challenges in managing its current assets and liabilities efficiently.

It is important for investors and analysts to monitor the current ratio over time and compare it to industry benchmarks to assess NOV Inc's ability to meet its short-term financial obligations and manage its working capital effectively. Overall, while the current ratio of 2.40 indicates decent liquidity, the decreasing trend over the years warrants further investigation into the company's financial health and management of its current assets and liabilities.