NOV Inc. (NOV)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,294,000 | 10,135,000 | 9,550,000 | 9,929,000 | 13,149,000 |
| Total stockholders’ equity | US$ in thousands | 6,168,000 | 5,096,000 | 4,997,000 | 5,210,000 | 7,778,000 |
| Financial leverage ratio | 1.83 | 1.99 | 1.91 | 1.91 | 1.69 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,294,000K ÷ $6,168,000K
= 1.83
The financial leverage ratio of NOV Inc has shown some fluctuation over the past five years. In 2023, the ratio stands at 1.83, indicating that the company carries $1.83 in debt for every dollar of equity. This represents a slight decrease from the previous year when the ratio was 1.99. Despite this decrease, the current ratio is still higher than in 2021 and 2020 when it was 1.91. The highest financial leverage ratio observed in the last five years was in 2019 at 1.69.
Overall, the trend in NOV Inc's financial leverage ratio suggests that the company has been managing its debt levels relative to its equity in a somewhat fluctuating manner over the past five years. It is important to monitor changes in this ratio to assess the company's leverage and financial risk going forward.
Peer comparison
Dec 31, 2023