NOV Inc. (NOV)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 24.14% | 24.04% | 24.04% | 21.37% | 21.30% | 21.40% | 20.94% | 20.01% | 18.43% | 16.36% | 14.84% | 14.29% | 14.01% | 9.49% | 8.55% | 6.71% | 7.13% | 12.44% | 11.41% | 9.65% |
| Operating profit margin | 11.35% | 10.73% | 10.62% | 7.77% | 7.52% | 7.84% | 6.89% | 5.74% | 4.10% | 1.80% | -0.10% | -1.06% | -2.43% | -7.87% | -8.39% | -10.32% | -39.82% | -35.11% | -32.79% | -97.14% |
| 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% |
| Net profit margin | 7.16% | 12.06% | 11.89% | 11.24% | 11.58% | 6.00% | 5.20% | 4.33% | 2.16% | 0.18% | -1.45% | -3.16% | -4.53% | -10.44% | -10.10% | -11.18% | -41.74% | -36.63% | -35.56% | -95.76% |
NOV Inc.'s profitability ratios have shown a significant improvement over the past few years. The Gross profit margin, which measures the percentage of sales revenue that exceeds the cost of goods sold, has consistently increased from 9.65% in March 2020 to 24.14% in December 2024. This indicates better cost management and pricing strategies.
The Operating profit margin, reflecting the proportion of revenue left after subtracting operating expenses, has also shown a positive trend, moving from negative percentages in 2020 to 11.35% in December 2024. This suggests operational efficiency improvements and better control over expenses.
Furthermore, the Pretax margin, representing the percentage of revenue that translates into pre-tax profit, has shown a steady increase from negative percentages to 9.37% by December 2024. This indicates improved overall profitability and effective tax management.
Finally, the Net profit margin, which shows the company's bottom line profitability after all expenses, has exhibited significant growth from negative percentages to 12.06% by September 2024, although there was a slight dip in December 2024. This demonstrates the company's ability to generate more profits for each dollar of sales.
Overall, NOV Inc. has made impressive progress in enhancing its profitability margins, reflecting better cost control, operational efficiency, and overall financial performance over the analyzed period.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 5.59% | 9.39% | 9.36% | 8.72% | 8.79% | 4.75% | 3.99% | 3.25% | 1.54% | 0.12% | -0.92% | -1.93% | -2.62% | -5.82% | -5.66% | -6.31% | -25.60% | -25.37% | -26.51% | -75.44% |
| Return on total capital | 13.89% | 12.81% | 12.73% | 10.89% | 11.09% | 12.46% | 10.77% | 9.50% | 6.16% | 2.96% | 0.41% | -1.40% | -3.02% | -8.98% | -9.83% | -12.04% | -51.05% | -50.43% | -51.78% | -154.67% |
| Return on equity (ROE) | 9.88% | 16.60% | 16.57% | 15.79% | 16.10% | 9.04% | 7.59% | 6.31% | 3.04% | 0.25% | -1.81% | -3.72% | -4.94% | -11.12% | -10.63% | -12.01% | -48.15% | -46.57% | -50.05% | -147.01% |
Based on the provided data for NOV Inc., we can observe a gradual improvement in profitability ratios over the quarters analyzed.
1. Operating Return on Assets (Operating ROA):
The Operating ROA ratio, which measures the operating income generated relative to the total assets, has shown a consistent upward trend from -76.53% in March 2020 to 8.86% in December 2024. This indicates that the company has been able to efficiently utilize its assets to generate operating profits over time.
2. Return on Assets (ROA):
The ROA ratio, which reflects the net income earned in relation to the total assets, initially started at a low of -75.44% in March 2020 but steadily increased to 5.59% by December 2024. This improvement suggests that the company's overall profitability relative to its asset base has strengthened across the quarters.
3. Return on Total Capital:
The Return on Total Capital ratio, indicating the returns generated on all capital invested in the company, exhibited a similar positive trend, increasing from -154.67% in March 2020 to 13.89% by December 2024. This signifies that NOV Inc. has been able to enhance its capital efficiency and generate higher returns for its capital providers.
4. Return on Equity (ROE):
The ROE ratio, which measures the net income earned relative to the shareholders' equity, also displayed a consistent improvement over the quarters, rising from -147.01% in March 2020 to 9.88% by December 2024. This indicates that the company has been efficiently utilizing shareholders' equity to generate profits and create value for its equity investors.
In conclusion, the profitability ratios of NOV Inc. have shown positive growth trends, reflecting improved efficiency in asset utilization, capital management, and overall profitability across the analyzed quarters.