NOV Inc. (NOV)

Current 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
Total current assets	US$ in thousands	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	6,113,000	6,515,000	6,766,000	6,938,000
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
Current ratio		2.40	2.39	2.35	2.35	2.25	2.30	2.35	2.50	2.57	2.67	2.71	2.58	2.79	2.85	2.86	2.73	2.72	2.86	3.05	3.30

December 31, 2023 calculation

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

The current ratio of NOV Inc has remained relatively stable over the past eight quarters, fluctuating in the range of 2.25 to 2.50. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive indication of financial health.

NOV Inc's current ratio has consistently been above 2, indicating that the company has a solid ability to meet its short-term obligations using its current assets. The slight fluctuations in the ratio over the quarters suggest that the company has been managing its current assets and liabilities effectively to maintain a healthy liquidity position.

Overall, the trend of a current ratio above 2 shows that NOV Inc has a strong liquidity position, which could provide a cushion in case of unexpected financial challenges or short-term needs.