NOV Inc. (NOV)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands 831,000 612,000 238,000 -230,000 -2,779,000
Revenue US$ in thousands 8,870,000 8,583,000 7,237,000 5,524,000 6,090,000
Pretax margin 9.37% 7.13% 3.29% -4.16% -45.63%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $831,000K ÷ $8,870,000K
= 9.37%

The pretax margin of NOV Inc. has shown a significant improvement over the years. Starting at a negative figure of -45.63% in December 2020, it has steadily climbed to -4.16% in December 2021, indicating a reduction in losses. Subsequently, the pretax margin turned positive, reaching 3.29% by December 2022, and continued to rise to 7.13% by December 2023. The most recent data point for December 2024 reveals a pretax margin of 9.37%, signaling a healthy increase in profitability.

This upward trend in pretax margin reflects an enhancement in NOV Inc.'s ability to generate earnings before taxes relative to its revenue. It suggests that the company has likely implemented strategies to improve operational efficiency and cost management. Investors and analysts may view this positive trend favorably as an indication of the company's improving financial health and profitability potential.