NOV (BSP:N1OV34) ROCE % : 7.41% (As of Dec. 2023)

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What is NOV ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. NOV's annualized ROCE % for the quarter that ended in Dec. 2023 was 7.41%.

NOV ROCE % Historical Data

The historical data trend for NOV's ROCE % 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 ROCE % Chart

NOV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-46.41

-32.16

-2.04

3.97

8.19

NOV Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															8.52	8.50	9.55	8.92	7.41

NOV ROCE % Calculation

NOV's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	3429.86	/	( ( (53162.129 - 12783.04)	+	(55338.341 - 11931.013) )	/ 2 )
	=	3429.86	/	( (40379.089	+	43407.328)	/ 2 )
	=	3429.86	/	41893.2085
	=	8.19 %

NOV's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	3096.672	/	( ( (51846.473 - 11699.78)	+	(55338.341 - 11931.013) )	/ 2 )
	=	3096.672	/	( ( 40146.693	+	43407.328 )	/ 2 )
	=	3096.672	/	41777.0105
	=	7.41 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

NOV (BSP:N1OV34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

NOV ROCE % Related Terms

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NOV (BSP:N1OV34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » NOV Inc (BSP:N1OV34) » Definitions » ROCE %

Comparable Companies

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NOV:USA 0K58:UK 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.

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