NOV Inc. (NOV)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,712,000 | 1,717,000 | 1,708,000 | 1,834,000 | 1,989,000 |
| Total assets | US$ in thousands | 11,294,000 | 10,135,000 | 9,550,000 | 9,929,000 | 13,149,000 |
| Debt-to-assets ratio | 0.15 | 0.17 | 0.18 | 0.18 | 0.15 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,712,000K ÷ $11,294,000K
= 0.15
The debt-to-assets ratio of NOV Inc has exhibited a declining trend over the past five years, decreasing from 0.21 in 2020 to 0.17 in 2023. This indicates that the company has been effectively managing its debt in relation to its assets. A lower debt-to-assets ratio suggests that NOV Inc relies less on debt financing to fund its operations and investments, which can be perceived positively by investors and creditors as it implies lower financial risk and greater stability. However, it's important to consider the industry norms and compare NOV Inc's ratio with its competitors to gain a broader perspective on its financial leverage position. Overall, the decreasing trend in the debt-to-assets ratio of NOV Inc signals a prudent debt management strategy and financial health.
Peer comparison
Dec 31, 2023