NOV Inc. (NOV)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 651,000 | 264,000 | -134,000 | -2,425,000 | -6,279,000 |
| Total assets | US$ in thousands | 11,294,000 | 10,135,000 | 9,550,000 | 9,929,000 | 13,149,000 |
| Operating ROA | 5.76% | 2.60% | -1.40% | -24.42% | -47.75% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $651,000K ÷ $11,294,000K
= 5.76%
NOV Inc's operating return on assets (operating ROA) has exhibited fluctuating trends over the past five years. The operating ROA increased from -8.00% in 2020 to -1.46% in 2021, signifying an improvement in the company's ability to generate operating income from its assets. Subsequently, there was a significant jump in operating ROA to 2.60% in 2022, indicating further enhancement in operational efficiency.
The most recent data for Dec 31, 2023, shows an operating ROA of 5.76%, reflecting a continuing positive trend in the company's ability to utilize its assets effectively to generate operating profits. This improvement suggests that NOV Inc has been able to increase its operational efficiency and profitability compared to prior years.
Overall, the consistent improvement in NOV Inc's operating ROA from negative figures to positive values over the past five years indicates a positive trajectory in the company's operational performance and suggests effective management of assets to drive profitability.
Peer comparison
Dec 31, 2023