NOV Inc. (NOV)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 993,000 | 155,000 | -250,000 | -2,542,000 | -6,095,000 |
| Total assets | US$ in thousands | 11,294,000 | 10,135,000 | 9,550,000 | 9,929,000 | 13,149,000 |
| ROA | 8.79% | 1.53% | -2.62% | -25.60% | -46.35% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $993,000K ÷ $11,294,000K
= 8.79%
NOV Inc's return on assets (ROA) has shown a positive trend over the past five years, demonstrating improving efficiency in generating profits from its assets. The ROA increased from -46.35% in 2019 to 8.79% in 2023, indicating a significant turnaround in the company's asset utilization.
The sharp improvement in ROA suggests that NOV Inc has been able to increase its profitability relative to the size of its asset base. This could be attributed to effective cost management, better operational efficiency, and strategic investments that are yielding positive returns.
The positive ROA in 2023 implies that NOV Inc is generating a higher return for each dollar of assets compared to the previous years, reflecting better overall financial performance and potentially enhanced shareholder value. The company's management may have implemented measures to optimize the use of its assets and improve productivity, leading to the observed improvement in ROA.
Overall, the increasing trend in ROA for NOV Inc signals improved asset efficiency and profitability, indicating positive prospects for the company's financial performance and sustainable growth in the future.
Peer comparison
Dec 31, 2023