Stock Analysis on Net
Stock Analysis on Net

National Oilwell Varco Inc. (NYSE:NOV)

This company has been moved to the archive! The financial data has not been updated since August 3, 2016.

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

National Oilwell Varco Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Land and buildings 1,582 1,528 1,494 1,348 1,069
Operating equipment 3,055 3,060 2,960 2,463 1,955
Rental equipment 639 817 758 712 636
Property, plant and equipment, gross 5,276 5,405 5,212 4,523 3,660
Accumulated depreciation (2,152) (2,043) (1,804) (1,578) (1,215)
Property, plant and equipment, net 3,124 3,362 3,408 2,945 2,445

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Item Description The company
Property, plant and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. National Oilwell Varco Inc. property, plant and equipment, gross increased from 2013 to 2014 but then slightly decreased from 2014 to 2015 not reaching 2013 level.
Property, plant and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. National Oilwell Varco Inc. property, plant and equipment, net decreased from 2013 to 2014 and from 2014 to 2015.

Asset Age Ratios (Summary)

National Oilwell Varco Inc., asset age ratios

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Average age ratio 40.79% 37.80% 34.61% 34.89% 33.20%
Estimated total useful life (years) 13 13 13 14 13
Estimated age, time elapsed since purchase (years) 6 5 5 5 4
Estimated remaining life (years) 8 8 9 9 9

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. National Oilwell Varco Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. National Oilwell Varco Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. National Oilwell Varco Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015.
Estimated remaining life National Oilwell Varco Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2013 to 2014 and from 2014 to 2015.

Average Age

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Accumulated depreciation 2,152 2,043 1,804 1,578 1,215
Property, plant and equipment, gross 5,276 5,405 5,212 4,523 3,660
Asset Age Ratio
Average age1 40.79% 37.80% 34.61% 34.89% 33.20%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Average age = 100 × Accumulated depreciation ÷ Property, plant and equipment, gross
= 100 × 2,152 ÷ 5,276 = 40.79%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. National Oilwell Varco Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross 5,276 5,405 5,212 4,523 3,660
Depreciation expense 391 413 392 323 279
Asset Age Ratio (Years)
Estimated total useful life1 13 13 13 14 13

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Estimated total useful life = Property, plant and equipment, gross ÷ Depreciation expense
= 5,276 ÷ 391 = 13

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. National Oilwell Varco Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Accumulated depreciation 2,152 2,043 1,804 1,578 1,215
Depreciation expense 391 413 392 323 279
Asset Age Ratio (Years)
Time elapsed since purchase1 6 5 5 5 4

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 2,152 ÷ 391 = 6

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. National Oilwell Varco Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2013 to 2014 and from 2014 to 2015.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 3,124 3,362 3,408 2,945 2,445
Depreciation expense 391 413 392 323 279
Asset Age Ratio (Years)
Estimated remaining life1 8 8 9 9 9

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Estimated remaining life = Property, plant and equipment, net ÷ Depreciation expense
= 3,124 ÷ 391 = 8

Asset age ratio Description The company
Estimated remaining life National Oilwell Varco Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2013 to 2014 and from 2014 to 2015.