NOV Inc. (NOV)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.22	0.24	0.24	0.25	0.25	0.26	0.26	0.26	0.25	0.25	0.25	0.25	0.26	0.25	0.27	0.27	0.20	0.24	0.23	0.15

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

NOV Inc's debt-to-capital ratio has been relatively stable over the past eight quarters, ranging between 0.24 and 0.29. This ratio measures the proportion of a company's capital that is financed by debt, with a lower ratio generally indicating lower financial risk and higher solvency.

The trend shows a slight increase from 0.24 in Q4 2022 to 0.29 in Q3 2022 before stabilizing around 0.27 to 0.28 in the subsequent quarters. This stabilization suggests that NOV Inc has been maintaining an appropriate balance between debt and capital to support its operations and growth.

Overall, NOV Inc's debt-to-capital ratio indicates a moderate reliance on debt financing, which can provide advantages such as tax benefits and increased leverage, but also carries the risk of financial distress if not managed prudently. It is important for investors and stakeholders to monitor this ratio along with other financial metrics to assess the company's overall financial health.