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NOV ROE %

: 5.60% (As of Jun. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. NOV's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $276 Mil. NOV's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $4,928 Mil. Therefore, NOV's annualized ROE % for the quarter that ended in Jun. 2022 was 5.60%.

The historical rank and industry rank for NOV's ROE % or its related term are showing as below:

NOV' s ROE % Range Over the Past 10 Years
Min: -56.44   Med: -2.92   Max: 13.16
Current: -1.8

During the past 13 years, NOV's highest ROE % was 13.16%. The lowest was -56.44%. And the median was -2.92%.

NOV's ROE % is ranked worse than
65.55% of 987 companies
in the Oil & Gas industry
Industry Median: 6.38 vs NOV: -1.80

NOV ROE % Historical Data

The historical data trend for NOV's ROE % 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.

* Premium members only.

NOV Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.69 -0.22 -56.44 -39.14 -4.90

NOV Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.04 -5.46 -3.20 -4.02 5.60

Competitive Comparison

For the Oil & Gas Equipment & Services subindustry, NOV's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

NOV ROE % Distribution

For the Oil & Gas industry and Energy sector, NOV's ROE % distribution charts can be found below:

* The bar in red indicates where NOV's ROE % falls into.



NOV ROE % Calculation

NOV's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=-250/( (5210+4997)/ 2 )
=-250/5103.5
=-4.90 %

NOV's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=276/( (4946+4909)/ 2 )
=276/4927.5
=5.60 %

* 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.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


NOV  (NYSE:NOV) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=276/4927.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(276 / 6908)*(6908 / 9626.5)*(9626.5 / 4927.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=4 %*0.7176*1.9536
=ROA %*Equity Multiplier
=2.87 %*1.9536
=5.60 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=276/4927.5
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (276 / 272) * (272 / 272) * (272 / 6908) * (6908 / 9626.5) * (9626.5 / 4927.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0147 * 1 * 3.94 % * 0.7176 * 1.9536
=5.60 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


NOV ROE % Related Terms

Thank you for viewing the detailed overview of NOV's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


NOV Business Description

NOV logo
Address
7909 Parkwood Circle Drive, Houston, TX, USA, 77036-6565
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 more than a thousand locations in six continents.
Executives
Shelton Kirk M. officer: Pres. - Compl. and Prod. Sol. C/O NOV INC., 7909 PARKWOOD CIRCLE DRIVE HOUSTON TX 77036
Joseph Isaac H. officer: Pres. - Wellbore Technologies C/O NOV INC., 7909 PARKWOOD CIRCLE DRIVE HOUSTON TX 77036
Novak Christy Lynn officer: VP, Corp. Controller, CAO C/O NOV INC. 7909 PARKWOOD CIRCLE DR. HOUSTON TX 77036
Welborn Robert S. director C/O NOV INC. 7909 PARKWOOD CIRCLE DR. HOUSTON TX 77036
Meyer Melody B director 1 NORTH WAUKEGAN ROAD NORTH CHICAGO IL 60064
Hackett James T director C/O FLUOR CORPORATION 6700 LAS COLINAS BLVD IRVING TX 75039
Jarvis Roger L director SPINNAKER EXPLORATION CO 1200 SMITH ST STE 800 HOUSTON TX 77002
Thomas William R. director 1111 BAGBY, SKY LOBBY 2 HOUSTON TX 77002
Donadio Marcela E director 7909 PARKWOOD CIRCLE DRIVE HOUSTON TX 77036-6565
Armstrong Greg L director
Guill Ben A director 600 TRAVIS SUITE 6000 HOUSTON TX 77002
Mattson Eric L director C/O REX ENERGY CORP 366 WALKER DRIVE STATE COLLEGE PA 16801
Bayardo Jose A officer: Senior VP and CFO 11700 OLD KATY ROAD SUITE 300 HOUSTON TX 77079
Weinstock Craig L. officer: Sr. VP. & Gen. Counsel 7909 PARKWOOD CIRCLE DRIVE HOUSTON TX 77036-6565
Williams Clay C director, officer: Chairman, President and CEO

NOV Headlines

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