NOV Inc. (NOV)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	635,000	993,000	155,000	-245,000	-2,537,000
Total assets	US$ in thousands	11,361,000	11,294,000	10,135,000	9,550,000	9,929,000
ROA		5.59%	8.79%	1.53%	-2.57%	-25.55%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $635,000K ÷ $11,361,000K
= 5.59%

NOV Inc.'s return on assets (ROA) has shown a significant improvement over the years. At the end of 2020, the ROA was at -25.55%, indicating a substantial loss on assets relative to its total assets. However, the company has managed to turn the situation around in the following years. By the end of 2021, the ROA had improved to -2.57%, showing a reduction in asset losses. This positive trend continued into 2022, with the ROA further increasing to 1.53%, indicating that the company is generating a small profit on its assets.

In 2023, NOV Inc.'s ROA experienced a notable improvement, reaching 8.79%, reflecting a significantly better utilization of its assets to generate profits. The upward trajectory continued in 2024, where the ROA stood at 5.59%, demonstrating continued efficiency in generating returns from its assets.

Overall, NOV Inc. has shown a commendable performance in optimizing its asset utilization and improving profitability over the analyzed period. This positive trend bodes well for the company's financial health and indicates effective management of its assets to generate returns for its investors.