NOV Inc. (NOV)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
NOV Inc. has consistently maintained a strong solvency position based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 for all the reported quarters up to December 31, 2024. This indicates that the company has not relied heavily on debt to finance its operations and investments, which is a positive sign for investors and creditors.
The Financial leverage ratio, which measures the extent to which the company relies on debt financing, has shown some fluctuation over the quarters but generally remains within a reasonable range. The ratio started at 1.95 on March 31, 2020, and decreased gradually to 1.77 by December 31, 2024. This suggests that NOV Inc. has been able to manage its debt levels effectively while sustaining its operations and growth.
Overall, the consistent low debt ratios and a decreasing trend in the Financial leverage ratio indicate that NOV Inc. has a healthy solvency position, which bodes well for the company's financial stability and ability to meet its financial obligations in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.81 | 9.20 | 8.83 | 8.19 | 8.55 | 9.69 | 8.84 | 6.82 | 4.45 | 1.89 | 0.26 | -0.91 | -1.99 | -5.84 | -6.35 | -7.46 | -32.08 | -31.04 | -30.48 | -87.47 |
The interest coverage ratio of NOV Inc. has shown a significant improvement over the period from March 31, 2020, to December 31, 2024. The ratio was negative in the initial quarters, indicating that the company's operating income was insufficient to cover its interest expenses during that time.
However, starting from June 30, 2022, the interest coverage ratio turned positive and continued to increase steadily. The positive trend indicates that the company's operating income has improved sufficiently to cover its interest expenses and even have some buffer.
By December 31, 2024, NOV Inc.'s interest coverage ratio reached a healthy level of 9.81, suggesting the company is in a strong position to meet its interest obligations comfortably. This improvement may be attributed to growth in operating profits, efficient cost management, or refinancing of debt at lower interest rates.
Overall, the increasing interest coverage ratio reflects a positive shift in NOV Inc.'s financial performance and indicates a reduced risk of financial distress due to its ability to service its interest payments.