NOV Inc. (NOV)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 831,000 | 767,000 | 749,000 | 632,000 | 612,000 | 618,000 | 526,000 | 418,000 | 238,000 | 68,000 | -56,000 | -145,000 | -230,000 | -527,000 | -581,000 | -694,000 | -2,779,000 | -2,884,000 | -2,959,000 | -8,582,000 |
| Revenue (ttm) | US$ in thousands | 8,869,000 | 8,899,000 | 8,893,000 | 8,770,000 | 8,578,000 | 8,313,000 | 8,017,000 | 7,651,000 | 7,237,000 | 6,681,000 | 6,133,000 | 5,823,000 | 5,524,000 | 5,334,000 | 5,377,000 | 5,456,000 | 6,090,000 | 7,044,000 | 7,786,000 | 8,422,000 |
| Pretax margin | 9.37% | 8.62% | 8.42% | 7.21% | 7.13% | 7.43% | 6.56% | 5.46% | 3.29% | 1.02% | -0.91% | -2.49% | -4.16% | -9.88% | -10.81% | -12.72% | -45.63% | -40.94% | -38.00% | -101.90% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $831,000K ÷ $8,869,000K
= 9.37%
NOV Inc.'s pretax margin has exhibited a significant improvement over the analyzed period from March 31, 2020, to December 31, 2024. At the beginning of the period, the company experienced negative pretax margins, with figures as low as -101.90% in March 2020, indicating that expenses exceeded its gross income.
However, the company gradually improved its performance, managing to reduce its pretax losses quarter by quarter. The pretax margin turned positive in the third quarter of 2022, marking a turning point for NOV Inc.'s financial performance. The positive trend continued, with the pretax margin consistently increasing until reaching a peak of 9.37% by December 2024.
This improvement in pretax margin reflects the company's efforts in controlling costs, increasing operational efficiency, and potentially generating higher revenues. A rising pretax margin indicates that NOV Inc. is becoming more profitable before accounting for taxes, which is a positive sign for potential investors and stakeholders in evaluating the company's financial health and performance.
Peer comparison
Dec 31, 2024