NOV (NOV) Inventory Turnover

: 0.83 (As of Dec. 2023)

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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. NOV's Cost of Goods Sold for the three months ended in Dec. 2023 was $1,846 Mil. NOV's Average Total Inventories for the quarter that ended in Dec. 2023 was $2,214 Mil. NOV's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.83.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. NOV's Days Inventory for the three months ended in Dec. 2023 was 109.44.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. NOV's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.94.

NOV Inventory Turnover Historical Data

The historical data trend for NOV's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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NOV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.95

3.14

3.47

3.76

3.41

NOV Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.91	0.81	0.77	0.77	0.83

NOV Inventory Turnover Calculation

NOV's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	6750	/ (	(1813	+	2151)	/	2 )
=	6750	/	1982
=	3.41

NOV's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	1846	/ (	(2277	+	2151)	/	2 )
=	1846	/	2214
=	0.83

NOV (NYSE:NOV) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

NOV's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	2214	/	1846	*	365 / 4
	=	109.44

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

NOV's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	2214	/	2343
	=	0.94

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

NOV Inventory Turnover Related Terms

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NOV (NOV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » NOV Inc (NYSE:NOV) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

0K58:UK NO8:Germany NO8:Germany

Address

10353 Richmond Avenue, Houston, TX, USA, 77042-4103

Website

https://www.nov.com

NOV (formerly National Oilwell Varco) is a leading supplier of oil and gas drilling rig equipment and products, such as downhole tools, drill pipe, and well casing. The company operates on a global scale, with international markets contributing more than 60% of its annual revenue.

Executives

Eric L Mattson	director	C/O REX ENERGY CORP, 366 WALKER DRIVE, STATE COLLEGE PA 16801
Christy Lynn Novak	officer: VP, Corp. Controller, CAO	C/O NOV INC., 7909 PARKWOOD CIRCLE DR., HOUSTON TX 77036
Kirk M. Shelton	officer: Pres. - Compl. and Prod. Sol.	C/O NOV INC., 7909 PARKWOOD CIRCLE DRIVE, HOUSTON TX 77036
Isaac H. Joseph	officer: See Remarks	C/O NOV INC., 7909 PARKWOOD CIRCLE DRIVE, HOUSTON TX 77036
David D Harrison	director	5500 WAYZATA BLVD., SUITE 800, GOLDEN VALLEY MN 55416
Greg L Armstrong	director
Robert S. Welborn	director	C/O NOV INC., 7909 PARKWOOD CIRCLE DR., HOUSTON TX 77036
Scott K. Duff	officer: VP Cntrlr Chf Acctg Offcr	7909 PARKWOOD CIRCLE DRIVE, HOUSTON TX 77036-6565
Jose A Bayardo	officer: Senior VP and CFO	11700 OLD KATY ROAD SUITE 300, HOUSTON TX 77079
Joseph W Rovig	officer: See Remarks	7909 PARKWOOD CIRCLE DRIVE, HOUSTON TX 77036-6565
Clay C Williams	director, officer: Chairman, President and CEO
Craig L. Weinstock	officer: Sr. VP. & Gen. Counsel	7909 PARKWOOD CIRCLE DRIVE, HOUSTON TX 77036-6565
Melody B Meyer	director	1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL 60064
James T Hackett	director	C/O FLUOR CORPORATION, 6700 LAS COLINAS BLVD, IRVING TX 75039
Marcela E Donadio	director	7909 PARKWOOD CIRCLE DRIVE, HOUSTON TX 77036-6565