NOV Inc. (NOV)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,361,000 | 11,422,000 | 11,297,000 | 11,305,000 | 11,294,000 | 10,498,000 | 10,446,000 | 10,177,000 | 10,135,000 | 9,761,000 | 9,700,000 | 9,553,000 | 9,550,000 | 9,567,000 | 9,601,000 | 9,672,000 | 9,929,000 | 10,168,000 | 10,447,000 | 10,690,000 |
| Total stockholders’ equity | US$ in thousands | 6,428,000 | 6,464,000 | 6,379,000 | 6,246,000 | 6,168,000 | 5,521,000 | 5,497,000 | 5,243,000 | 5,134,000 | 4,868,000 | 4,909,000 | 4,946,000 | 5,064,000 | 5,010,000 | 5,108,000 | 5,081,000 | 5,279,000 | 5,540,000 | 5,533,000 | 5,486,000 |
| Financial leverage ratio | 1.77 | 1.77 | 1.77 | 1.81 | 1.83 | 1.90 | 1.90 | 1.94 | 1.97 | 2.01 | 1.98 | 1.93 | 1.89 | 1.91 | 1.88 | 1.90 | 1.88 | 1.84 | 1.89 | 1.95 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,361,000K ÷ $6,428,000K
= 1.77
NOV Inc.'s financial leverage ratio has fluctuated over the past several years, indicating changes in the company's debt levels relative to its equity. The ratio decreased from 1.95 in March 2020 to 1.77 by December 2024. This indicates a decline in the company's reliance on debt financing compared to equity financing over the period.
The ratio peaked at 2.01 in September 2022, suggesting a relatively high level of debt compared to equity at that point. However, it decreased thereafter, reaching its lowest point of 1.77 by the end of 2024.
Overall, the trend in NOV Inc.'s financial leverage ratio shows some variability but with a general downward trajectory, indicating potential efforts to reduce reliance on debt and strengthen the company's financial position through a more balanced mix of debt and equity financing. However, it is important to further analyze the company's overall financial health and performance in conjunction with other financial metrics for a comprehensive assessment.
Peer comparison
Dec 31, 2024