NOV Inc. (NOV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 816,000 | 1,069,000 | 1,591,000 | 1,692,000 | 1,171,000 |
| Short-term investments | US$ in thousands | — | — | — | 51,000 | 8,000 |
| Receivables | US$ in thousands | 1,905,000 | 1,739,000 | 1,321,000 | 1,274,000 | 1,855,000 |
| Total current liabilities | US$ in thousands | 2,435,000 | 2,437,000 | 1,910,000 | 1,867,000 | 2,247,000 |
| Quick ratio | 1.12 | 1.15 | 1.52 | 1.62 | 1.35 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($816,000K
+ $—K
+ $1,905,000K)
÷ $2,435,000K
= 1.12
The quick ratio of NOV Inc has displayed a declining trend over the past five years, decreasing from 2.04 in 2020 to 1.51 in 2023. This indicates that the company's ability to meet its short-term obligations using its most liquid assets has weakened. However, the quick ratio has maintained a relatively stable range between 1.51 and 1.87 from 2021 to 2023, suggesting some consistency in NOV Inc's liquidity position during these years. It is essential for stakeholders to closely monitor this ratio to ensure the company's short-term financial health and ability to cover immediate liabilities.
Peer comparison
Dec 31, 2023