NOV Inc. (NOV)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,833,000 | 1,334,000 | 774,000 | 434,000 | 845,000 |
| Revenue | US$ in thousands | 8,583,000 | 7,237,000 | 5,524,000 | 6,090,000 | 8,479,000 |
| Gross profit margin | 21.36% | 18.43% | 14.01% | 7.13% | 9.97% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,833,000K ÷ $8,583,000K
= 21.36%
The gross profit margin of NOV Inc has shown a positive trend over the past five years, increasing from 9.97% in 2019 to 21.36% in 2023. This improvement indicates that the company has been able to effectively manage its production costs and generate higher profits from its core business activities. The consistent upward trajectory in gross profit margin suggests an enhancement in operational efficiency and pricing strategies, which are key factors contributing to the company's profitability. It is important to note that a higher gross profit margin signifies that a larger proportion of revenue is retained as profit after accounting for the cost of goods sold, reflecting positively on the company's overall financial health and performance.
Peer comparison
Dec 31, 2023