NOV Inc. (NOV)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,168,000 | 5,096,000 | 4,997,000 | 5,210,000 | 7,778,000 |
| ROE | 16.10% | 3.04% | -5.00% | -48.79% | -78.36% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $993,000K ÷ $6,168,000K
= 16.10%
The return on equity (ROE) of NOV Inc has shown significant improvement over the past five years. ROE increased from -78.36% in 2019 to 16.10% in 2023. This upward trend indicates that the company's efficiency in generating profits from shareholders' equity has improved over time. The ROE of 16.10% in 2023 reflects a healthy return relative to the shareholders' investment, suggesting effective utilization of the company's equity to generate earnings. It is important to note that while ROE has improved, it should be further analyzed in conjunction with other financial metrics to gain a comprehensive understanding of NOV Inc's overall financial performance and sustainability.
Peer comparison
Dec 31, 2023