NOV Inc. (NOV)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,376,000	6,168,000	5,134,000	5,064,000	5,279,000
ROE		9.96%	16.10%	3.02%	-4.84%	-48.06%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $635,000K ÷ $6,376,000K
= 9.96%

Based on the data provided, NOV Inc.'s return on equity (ROE) has shown significant fluctuations over the past five years:

1. December 31, 2020: -48.06%
- The ROE was negative, indicating that the company had a net loss relative to its equity during this period.

2. December 31, 2021: -4.84%
- The ROE improved from the previous year but remained negative, suggesting that the company was still not generating strong returns on shareholders' equity.

3. December 31, 2022: 3.02%
- The ROE turned positive, indicating that the company started generating modest returns on its equity.

4. December 31, 2023: 16.10%
- The ROE increased significantly, showing a substantial improvement in the company's ability to generate returns for its shareholders.

5. December 31, 2024: 9.96%
- The ROE decreased from the previous year but remained positive, indicating that NOV Inc. continued to deliver favorable returns on equity.

Overall, the trend in NOV Inc.'s ROE suggests that the company has made progress in improving its profitability and efficiency in recent years. However, the negative ROE in 2020 and 2021 highlights challenges the company faced during those periods. The positive ROE figures in subsequent years indicate a turnaround and a more successful utilization of shareholders' equity to generate profits. It will be important for NOV Inc. to sustain or further improve its ROE to demonstrate value creation for shareholders in the future.