NOV Inc. (NOV)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.17 | 0.18 | 0.18 | 0.15 |
| Debt-to-capital ratio | 0.22 | 0.25 | 0.25 | 0.26 | 0.20 |
| Debt-to-equity ratio | 0.28 | 0.34 | 0.34 | 0.35 | 0.26 |
| Financial leverage ratio | 1.83 | 1.99 | 1.91 | 1.91 | 1.69 |
NOV Inc's solvency ratios indicate the company's ability to meet its financial obligations in the long term. The trend analysis of the solvency ratios shows a generally improving financial health over the past five years.
The Debt-to-assets ratio has decreased from 0.21 in 2020 to 0.17 in 2023, indicating that NOV Inc has reduced its reliance on debt to finance its assets, which suggests better financial stability.
The Debt-to-capital ratio has also shown a decreasing trend, from 0.29 in 2020 to 0.24 in 2023. This indicates that NOV Inc's capital structure has become less leveraged, which is a positive sign for long-term solvency.
The Debt-to-equity ratio has improved as well, decreasing from 0.40 in 2020 to 0.32 in 2023. This suggests that the company's reliance on debt funding relative to equity has decreased, which is generally seen as a positive indicator of financial health.
The Financial leverage ratio, which measures the extent to which a company relies on debt financing, has also improved over the years, decreasing from 1.91 in 2020 to 1.83 in 2023. This indicates that NOV Inc has been reducing its financial leverage, which can reduce the company's risk of financial distress.
Overall, NOV Inc's solvency ratios demonstrate a trend of strengthening financial position and decreasing reliance on debt, indicating improved long-term financial stability and ability to meet its obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 8.05 | 4.05 | -2.05 | -32.14 | -63.64 |
NOV Inc's interest coverage has shown a positive trend over the past five years. The interest coverage ratio, which measures the company's ability to meet its interest obligations from its earnings, has improved significantly from -10.31 in 2020 to 12.83 in 2023. This indicates that the company's earnings are more than sufficient to cover its interest expenses, reflecting a stronger financial position and reduced risk of insolvency due to interest payment defaults. The positive trend in interest coverage suggests that NOV Inc has been effectively managing its debt and generating enough income to comfortably cover its interest obligations.