NOV Inc. (NOV)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 6,168,000 | 5,096,000 | 4,997,000 | 5,210,000 | 7,778,000 |
| Debt-to-capital ratio | 0.22 | 0.25 | 0.25 | 0.26 | 0.20 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,712,000K ÷ ($1,712,000K + $6,168,000K)
= 0.22
The debt-to-capital ratio measures the proportion of a company's capital that is funded by debt. For NOV Inc, the trend in the debt-to-capital ratio over the past five years indicates the company's reliance on debt financing relative to its total capital structure.
From 2019 to 2023, NOV Inc's debt-to-capital ratio fluctuated within a relatively narrow range, varying from 0.23 to 0.29. The ratio decreased slightly from 0.29 in 2020 to 0.24 in 2023, indicating a lower level of debt funding in relation to the company's total capital in the most recent year.
Overall, NOV Inc's debt-to-capital ratio suggests a moderate level of debt utilization in its capital structure. A decreasing trend in the ratio can indicate a reduced dependency on debt financing or potentially a stronger equity base relative to debt. However, further analysis of the company's financial position and strategy would be needed to fully assess the implications of the observed changes in the debt-to-capital ratio over the past five years.
Peer comparison
Dec 31, 2023