NOV Inc. (NOV)

Debt-to-equity 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-equity ratio		0.28	0.31	0.32	0.33	0.34	0.35	0.35	0.35	0.34	0.34	0.33	0.33	0.35	0.33	0.37	0.36	0.26	0.31	0.30	0.18

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,712,000K ÷ $6,168,000K
= 0.28

NOV Inc's debt-to-equity ratio has shown a declining trend over the past eight quarters. The ratio decreased from 0.40 in Q1 2022 to 0.32 in Q4 2023, indicating a lower level of financial leverage relative to equity. This trend suggests that the company has been reducing its reliance on debt financing and strengthening its financial position.

A lower debt-to-equity ratio generally signifies less financial risk and indicates that the company may be in a better position to weather economic downturns or unexpected financial challenges. However, it's essential to consider other factors such as the nature of the industry, the company's growth plans, and overall economic conditions when interpreting this ratio.

Overall, the decreasing trend in NOV Inc's debt-to-equity ratio is a positive signal of improving financial health and prudent financial management.