NOV Inc. (NOV)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 635,000 | 1,073,000 | 1,057,000 | 986,000 | 993,000 | 499,000 | 417,000 | 331,000 | 156,000 | 12,000 | -89,000 | -184,000 | -250,000 | -557,000 | -543,000 | -610,000 | -2,542,000 | -2,580,000 | -2,769,000 | -8,065,000 |
| Total stockholders’ equity | US$ in thousands | 6,428,000 | 6,464,000 | 6,379,000 | 6,246,000 | 6,168,000 | 5,521,000 | 5,497,000 | 5,243,000 | 5,134,000 | 4,868,000 | 4,909,000 | 4,946,000 | 5,064,000 | 5,010,000 | 5,108,000 | 5,081,000 | 5,279,000 | 5,540,000 | 5,533,000 | 5,486,000 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $635,000K ÷ $6,428,000K
= 9.88%
NOV Inc.'s return on equity (ROE) experienced a significant improvement over the past few years. The ROE was negative in the initial periods, indicating the company was generating losses relative to its shareholders' equity. However, starting from the first quarter of 2022, the trend reversed, with the ROE turning positive and steadily increasing in subsequent quarters.
The improvement in ROE suggests that NOV Inc. has become more efficient in utilizing its equity to generate profits for shareholders. The positive ROE values achieved in the last few quarters indicate that the company is generating returns that exceed its equity investment, a positive sign for investors.
The upward trend in ROE indicates that NOV Inc. has been successful in enhancing its profitability and operational efficiency. Investors may view this trend positively as it shows the company's ability to generate higher returns on the equity investment. However, it is important to monitor future ROE figures to ensure the company's continued financial health and performance.
Peer comparison
Dec 31, 2024