NOV Inc. (NOV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 922,000 | 651,000 | 316,000 | -153,000 | -2,695,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,376,000 | 6,168,000 | 5,134,000 | 5,064,000 | 5,279,000 |
| Return on total capital | 14.46% | 10.55% | 6.16% | -3.02% | -51.05% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $922,000K ÷ ($—K + $6,376,000K)
= 14.46%
NOV Inc.'s return on total capital has shown a significant improvement over the years. From a negative return of -51.05% on December 31, 2020, the company managed to turn around its performance to -3.02% by December 31, 2021. Subsequently, there was a notable positive shift in the company's return on capital, reaching 6.16% by December 31, 2022. The positive trend continued with returns of 10.55% on December 31, 2023, and a further increase to 14.46% by December 31, 2024. This indicates that NOV Inc. has been able to utilize its capital more efficiently and generate higher returns for its investors over the analyzed period.
Peer comparison
Dec 31, 2024