NOV Inc. (NOV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.36% | 18.43% | 14.01% | 7.13% | 9.97% |
| Operating profit margin | 7.58% | 3.65% | -2.43% | -39.82% | -74.05% |
| Pretax margin | 7.22% | 3.29% | -4.25% | -45.71% | -76.24% |
| Net profit margin | 11.57% | 2.14% | -4.53% | -41.74% | -71.88% |
Over the years, NOV Inc has shown an improvement in its profitability ratios. The gross profit margin has been steadily increasing from 9.97% in 2019 to 21.36% in 2023, indicating the company's ability to control its production costs and generate more revenue from its sales.
Similarly, the operating profit margin has also shown a consistent upward trend, reaching 7.58% in 2023 from a negative -5.55% in 2019. This suggests that NOV Inc has been more efficient in managing its operating expenses and improving its operational performance.
The pretax margin has improved significantly over the years, moving from a negative -76.21% in 2019 to 7.13% in 2023. This indicates that the company has been able to generate higher profits before taxes relative to its total revenue.
Finally, the net profit margin has shown substantial growth, increasing from -71.88% in 2019 to 11.57% in 2023. This suggests that NOV Inc has been successful in controlling its overall expenses, including taxes and interest payments, and translating its revenue into higher net profits.
Overall, the improving trend in profitability ratios demonstrates NOV Inc's enhanced efficiency in managing its costs, operations, and overall financial performance over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.76% | 2.60% | -1.40% | -24.42% | -47.75% |
| Return on assets (ROA) | 8.79% | 1.53% | -2.62% | -25.60% | -46.35% |
| Return on total capital | 8.98% | 4.64% | -2.36% | -38.33% | -65.16% |
| Return on equity (ROE) | 16.10% | 3.04% | -5.00% | -48.79% | -78.36% |
NOV Inc's profitability ratios have shown significant variability over the past five years.
1. Operating return on assets (Operating ROA) has shown an improving trend, increasing from -3.58% in 2019 to 5.76% in 2023. This indicates that the company's operating performance in relation to its total assets has been improving steadily over the period.
2. Return on assets (ROA) has also shown improvement, with a notable increase from -46.35% in 2019 to 8.79% in 2023. This indicates that the company's overall profitability in relation to its total assets has strengthened significantly.
3. Return on total capital has shown fluctuations but has generally been positive, indicating that the company has been generating profits in relation to its total capital. The ratio has increased from -4.69% in 2019 to 9.47% in 2023, showcasing an improving trend.
4. Return on equity (ROE) has also demonstrated considerable improvement over the period, increasing from -78.36% in 2019 to 16.10% in 2023. This indicates that the company's profitability in relation to its equity has significantly improved, reflecting better efficiency in generating returns for its shareholders.
Overall, NOV Inc's profitability ratios have shown a positive trajectory, with improvements in operating efficiency, overall profitability, and returns to both total capital and equity holders over the past five years, suggesting better financial health and performance for the company.