NOV Inc. (NOV)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,770,000 | 5,918,000 | 5,844,000 | 5,688,000 | 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 |
| 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 |
| Current ratio | 2.46 | 2.57 | 2.61 | 2.50 | 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 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,770,000K ÷ $2,347,000K
= 2.46
The current ratio of NOV Inc. has shown a stable trend over the past few years, hovering between 2.25 and 2.86. This indicates that the company has maintained a healthy level of current assets relative to its current liabilities, suggesting strong short-term liquidity and the ability to meet its short-term financial obligations comfortably.
Although there has been some minor fluctuations in the current ratio over the quarters, overall, the ratio remains above 2. This indicates that NOV Inc. has a sufficient buffer of current assets to cover its short-term liabilities, providing a sense of financial stability and ability to weather economic downturns or unforeseen events.
Investors and creditors typically look at the current ratio to assess a company's short-term liquidity position and ability to manage its short-term financial commitments. In the case of NOV Inc., the consistent current ratio above 2 signifies a reliable financial standing in terms of liquidity management. However, it is important for the company to monitor this ratio regularly to ensure it stays within a comfortable range and does not dip too low, which could indicate potential financial distress.
Peer comparison
Dec 31, 2024