NOV Inc. (NOV)

Operating return on assets (Operating ROA)

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
Total assets US$ in thousands 11,361,000 11,294,000 10,135,000 9,550,000 9,929,000
Operating ROA 7.71% 5.76% 2.60% -1.60% -5.38%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $876,000K ÷ $11,361,000K
= 7.71%

NOV Inc.'s operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. Starting from a negative position in December 2020 at -5.38%, the company improved its operating ROA to -1.60% by December 2021. Subsequently, NOV Inc. demonstrated a significant turnaround in operational efficiency as reflected in its operating ROA of 2.60% by December 2022, indicating a positive return on its asset base.

The positive trend continued into the following years, with NOV Inc. reporting an operating ROA of 5.76% by December 2023 and further increasing to 7.71% by December 2024. This consistent improvement suggests that the company has been able to generate a higher operating income relative to its asset base, indicating better operational performance and possibly more effective utilization of its assets.

Overall, NOV Inc.'s increasing operating ROA over the specified period indicates a positive trajectory in terms of the company's operational efficiency and profitability.