NOV Inc. (NOV)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	708,000	714,000	609,000	500,000	316,000	142,000	17,000	-74,000	-158,000	-457,000	-507,000	-620,000	-2,700,000	-2,800,000	-2,864,000	-8,483,000	-6,364,000	-5,898,000	-5,685,000	104,000
Long-term debt	US$ in thousands	1,712,000	1,716,000	1,715,000	1,719,000	1,717,000	1,720,000	1,714,000	1,709,000	1,708,000	1,704,000	1,686,000	1,669,000	1,834,000	1,824,000	2,029,000	2,002,000	1,989,000	2,484,000	2,483,000	2,483,000
Total stockholders’ equity	US$ in thousands	6,168,000	5,521,000	5,434,000	5,243,000	5,096,000	4,868,000	4,909,000	4,946,000	4,997,000	5,010,000	5,108,000	5,081,000	5,210,000	5,465,000	5,460,000	5,486,000	7,778,000	8,057,000	8,411,000	13,765,000
Return on total capital		8.98%	9.87%	8.52%	7.18%	4.64%	2.16%	0.26%	-1.11%	-2.36%	-6.81%	-7.46%	-9.19%	-38.33%	-38.41%	-38.24%	-113.29%	-65.16%	-55.95%	-52.18%	0.64%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $708,000K ÷ ($1,712,000K + $6,168,000K)
= 8.98%

The return on total capital for NOV Inc has shown an improving trend over the past eight quarters. Starting from a low of -0.90% in Q1 2022, the return on total capital has steadily increased quarter over quarter, reaching 9.47% in Q4 2023. This indicates that the company has been able to generate a higher return relative to the total capital employed in its operations. The consistent improvement in this ratio suggests better efficiency in utilizing its capital resources to generate profits. Furthermore, the positive trend in return on total capital signals potential growth prospects and operational effectiveness for NOV Inc.