NOV Inc. (NOV)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 620,000 | 238,000 | -235,000 | -2,784,000 | -6,464,000 |
| Revenue | US$ in thousands | 8,583,000 | 7,237,000 | 5,524,000 | 6,090,000 | 8,479,000 |
| Pretax margin | 7.22% | 3.29% | -4.25% | -45.71% | -76.24% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $620,000K ÷ $8,583,000K
= 7.22%
NOV Inc's pretax margin has shown an improving trend over the past five years. The company experienced a significant improvement in pretax margin from negative figures in 2020 and 2019 to positive figures in 2021 onwards. This indicates that NOV Inc has been able to generate more profits before taxes compared to its total revenue in recent years.
The pretax margin increased from -4.16% in 2021 to 3.29% in 2022, reflecting a strong recovery. In 2023, the pretax margin further improved to 7.13%, indicating the company's continued focus on operational efficiency and cost management.
Overall, the positive trend in NOV Inc's pretax margin suggests that the company has been able to enhance its profitability and financial performance in recent years, which may be attributed to improved revenue generation or better control over costs and expenses.
Peer comparison
Dec 31, 2023