NOV Inc. (NOV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.66% | 21.36% | 18.43% | 14.01% | 7.13% |
| Operating profit margin | 9.88% | 7.58% | 3.65% | -2.77% | -8.77% |
| Pretax margin | 9.37% | 7.13% | 3.29% | -4.16% | -45.63% |
| Net profit margin | 7.16% | 11.57% | 2.14% | -4.44% | -41.66% |
NOV Inc.'s profitability ratios have shown a positive trend over the years. The gross profit margin has improved steadily from 7.13% in December 2020 to 22.66% in December 2024. This indicates that the company has been able to effectively manage its cost of goods sold and enhance its profitability from sales.
Similarly, the operating profit margin has progressively increased from -8.77% in December 2020 to 9.88% in December 2024. This signifies improved efficiency in managing operating expenses and generating profits from core operations.
Moreover, NOV Inc.'s pretax margin has shown significant improvement, moving from a negative figure of -45.63% in December 2020 to 9.37% in December 2024. This demonstrates the company's ability to enhance profitability before accounting for taxes.
Furthermore, the net profit margin has also displayed an uptrend, rising from -41.66% in December 2020 to 7.16% in December 2024. This indicates NOV Inc.'s ability to generate profits after accounting for all expenses, including taxes and interest payments.
Overall, NOV Inc.'s profitability ratios reflect a positive trajectory, showcasing improvements in cost management, operational efficiency, and overall profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.71% | 5.76% | 2.60% | -1.60% | -5.38% |
| Return on assets (ROA) | 5.59% | 8.79% | 1.53% | -2.57% | -25.55% |
| Return on total capital | 14.46% | 10.55% | 6.16% | -3.02% | -51.05% |
| Return on equity (ROE) | 9.96% | 16.10% | 3.02% | -4.84% | -48.06% |
NOV Inc.'s profitability ratios have shown a mixed performance over the years.
- Operating return on assets (Operating ROA) has improved steadily from -5.38% in December 2020 to 7.71% in December 2024. This indicates that the company has become more efficient in generating operating profits from its assets over the years.
- Return on assets (ROA) has fluctuated, starting at -25.55% in December 2020, and reaching its peak at 8.79% in December 2023 before declining slightly to 5.59% in December 2024. This shows that the company's profitability relative to its total assets has been volatile but has generally improved over time.
- Return on total capital has shown a similar upward trend, starting at -51.05% in December 2020 and rising to 14.46% in December 2024. This metric indicates the company's ability to generate returns for all its capital providers, including both debt and equity holders.
- Return on equity (ROE) has gone through fluctuations, starting at -48.06% in December 2020 and reaching its peak at 16.10% in December 2023. However, it decreased slightly to 9.96% in December 2024. This ratio reflects the company's ability to generate profits from shareholders' equity.
Overall, NOV Inc.'s profitability ratios have shown improvements over the years, with stronger returns on assets, total capital, and equity, indicating enhanced operational efficiency and profitability. However, the fluctuations in some ratios suggest that the company may have faced challenges or changes in its business environment during the period under review.