NOV Inc. (NOV)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 13,149,000 | 14,005,000 | 14,349,000 | 20,002,000 |
| 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 |
| Financial leverage ratio | 1.83 | 1.90 | 1.92 | 1.94 | 1.99 | 2.01 | 1.98 | 1.93 | 1.91 | 1.91 | 1.88 | 1.90 | 1.91 | 1.86 | 1.91 | 1.95 | 1.69 | 1.74 | 1.71 | 1.45 |
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 a declining trend over the past eight quarters. It decreased from 1.99 in Q4 2022 to 1.83 in Q4 2023. This suggests that the company has reduced its reliance on debt financing compared to its equity financing during this period. A lower financial leverage ratio indicates that NOV Inc has a stronger equity position relative to its debt obligations, which may reflect improved financial stability and lower financial risk. However, it is important to also consider the reasons behind this trend and assess whether it aligns with the company's overall financial strategy and performance objectives.
Peer comparison
Dec 31, 2023