NOV Inc. (NOV)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 876,000 | 651,000 | 264,000 | -153,000 | -534,000 |
| Revenue | US$ in thousands | 8,870,000 | 8,583,000 | 7,237,000 | 5,524,000 | 6,090,000 |
| Operating profit margin | 9.88% | 7.58% | 3.65% | -2.77% | -8.77% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $876,000K ÷ $8,870,000K
= 9.88%
Based on the provided data, the operating profit margin of NOV Inc. has experienced a notable improvement over the past few years. The operating profit margin was negative in both December 31, 2020, and December 31, 2021, indicating that the company was not generating a positive profit from its core operations during those periods.
However, there was a significant turnaround in December 31, 2022, when the operating profit margin improved to 3.65%, indicating that NOV Inc. started to generate a modest profit from its operations. This positive trend continued in the following years, with the operating profit margin reaching 7.58% by December 31, 2023, and further increasing to 9.88% by December 31, 2024.
The consistent improvement in the operating profit margin suggests that NOV Inc. has been able to enhance the efficiency of its operations, reduce costs, or increase revenues, leading to a healthier level of profitability. This positive trend bodes well for the company's financial performance and indicates effective management of its operational activities.
Peer comparison
Dec 31, 2024