NOV Inc. (NOV)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,007,000 | 955,000 | 944,000 | 681,000 | 645,000 | 652,000 | 552,000 | 439,000 | 297,000 | 120,000 | -6,000 | -62,000 | -134,000 | -420,000 | -451,000 | -563,000 | -2,425,000 | -2,473,000 | -2,553,000 | -8,181,000 |
| Total assets | US$ in thousands | 11,361,000 | 11,422,000 | 11,297,000 | 11,305,000 | 11,294,000 | 10,498,000 | 10,446,000 | 10,177,000 | 10,135,000 | 9,761,000 | 9,700,000 | 9,553,000 | 9,550,000 | 9,567,000 | 9,601,000 | 9,672,000 | 9,929,000 | 10,168,000 | 10,447,000 | 10,690,000 |
| Operating ROA | 8.86% | 8.36% | 8.36% | 6.02% | 5.71% | 6.21% | 5.28% | 4.31% | 2.93% | 1.23% | -0.06% | -0.65% | -1.40% | -4.39% | -4.70% | -5.82% | -24.42% | -24.32% | -24.44% | -76.53% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,007,000K ÷ $11,361,000K
= 8.86%
NOV Inc.'s operating return on assets (operating ROA) has shown a significant improvement over the past few years. The operating ROA was negative in the first half of 2020, indicating that the company was not generating operating income efficiently relative to its assets. However, from March 2021 onwards, the operating ROA started to improve steadily, turning positive by September 2022.
The positive trend in operating ROA from September 2022 to December 2024 suggests that NOV Inc. has been able to generate more operating income per dollar of assets over time. The operating ROA increased from 1.23% in September 2022 to 8.86% in December 2024, indicating that the company's operational efficiency and profitability have improved significantly.
Overall, the upward trend in NOV Inc.'s operating ROA reflects the company's effectiveness in utilizing its assets to generate operating income, which is a positive indicator of its financial performance and management's ability to generate returns for shareholders.
Peer comparison
Dec 31, 2024