NOV Inc. (NOV)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 893,000 | 828,000 | 812,000 | 680,000 | 684,000 | 688,000 | 592,000 | 498,000 | 316,000 | 144,000 | 20,000 | -69,000 | -153,000 | -450,000 | -502,000 | -612,000 | -2,695,000 | -2,794,000 | -2,865,000 | -8,485,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 13.89% | 12.81% | 12.73% | 10.89% | 11.09% | 12.46% | 10.77% | 9.50% | 6.16% | 2.96% | 0.41% | -1.40% | -3.02% | -8.98% | -9.83% | -12.04% | -51.05% | -50.43% | -51.78% | -154.67% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $893,000K ÷ ($—K + $6,428,000K)
= 13.89%
NOV Inc.'s return on total capital has shown a significant improvement over the past few quarters. From March 31, 2020, to December 31, 2024, the return on total capital has steadily increased from a negative figure of -154.67% to a positive figure of 13.89%.
The company experienced a turnaround in its return on total capital starting from the first quarter of 2023, where it jumped to 9.50% and continued to increase steadily thereafter. This improvement indicates that NOV Inc. has been more efficient in generating profits relative to the total capital employed in its operations.
The positive trend in return on total capital reflects well on NOV Inc.'s management of its resources and operations, indicating a potential enhancement in profitability and value creation for its shareholders. Overall, the increasing trend in return on total capital demonstrates a positive trajectory for NOV Inc.'s financial performance and efficiency in utilizing its capital resources.
Peer comparison
Dec 31, 2024