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National Oilwell Varco Inc. (NOV) | Long-term (Investment) Activity Analysis

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)

National Oilwell Varco Inc., long-term (investment) activity ratios

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Net fixed asset turnover	6.81	6.00	6.61	6.92	8.01
Total asset turnover	0.64	0.57	0.53	0.59	0.63
Equity turnover	0.99	0.83	0.77	0.90	1.06

Source: Based on data from National Oilwell Varco Inc. Annual Reports

Ratio	Description	The company
Net fixed asset turnover	An activity ratio calculated as total revenue divided by net fixed assets.	National Oilwell Varco Inc.'s net fixed asset turnover deteriorated from 2010 to 2011 but then improved from 2011 to 2012 exceeding 2010 level.
Total asset turnover	An activity ratio calculated as total revenue divided by total assets.	National Oilwell Varco Inc.'s total asset turnover improved from 2010 to 2011 and from 2011 to 2012.
Equity turnover	An activity ratio calculated as total revenue divided by shareholders' equity.	National Oilwell Varco Inc.'s equity turnover improved from 2010 to 2011 and from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Revenue	20,041	14,658	12,156	12,712	13,431
Property, plant and equipment, net	2,945	2,445	1,840	1,836	1,677
Net Fixed Asset Turnover, Comparison to Industry
National Oilwell Varco Inc.¹	6.81	6.00	6.61	6.92	8.01
Industry, Oil & Gas	1.61	1.80	1.58	1.42	2.40

Source: Based on data from National Oilwell Varco Inc. Annual Reports

2012 Calculations

¹ Net fixed asset turnover = Revenue ÷ Property, plant and equipment, net
= 20,041 ÷ 2,945 = 6.81

Ratio	Description	The company
Net fixed asset turnover	An activity ratio calculated as total revenue divided by net fixed assets.	National Oilwell Varco Inc.'s net fixed asset turnover deteriorated from 2010 to 2011 but then improved from 2011 to 2012 exceeding 2010 level.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Revenue	20,041	14,658	12,156	12,712	13,431
Total assets	31,484	25,515	23,050	21,532	21,479
Total Asset Turnover, Comparison to Industry
National Oilwell Varco Inc.¹	0.64	0.57	0.53	0.59	0.63
Industry, Oil & Gas	0.92	1.00	0.87	0.82	1.31

Source: Based on data from National Oilwell Varco Inc. Annual Reports

2012 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 20,041 ÷ 31,484 = 0.64

Ratio	Description	The company
Total asset turnover	An activity ratio calculated as total revenue divided by total assets.	National Oilwell Varco Inc.'s total asset turnover improved from 2010 to 2011 and from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Revenue	20,041	14,658	12,156	12,712	13,431
Company stockholders' equity	20,239	17,619	15,748	14,113	12,628
Equity Turnover, Comparison to Industry
National Oilwell Varco Inc.¹	0.99	0.83	0.77	0.90	1.06
Industry, Oil & Gas	1.89	2.08	1.80	1.72	2.77

Source: Based on data from National Oilwell Varco Inc. Annual Reports

2012 Calculations

¹ Equity turnover = Revenue ÷ Company stockholders' equity
= 20,041 ÷ 20,239 = 0.99

Ratio	Description	The company
Equity turnover	An activity ratio calculated as total revenue divided by shareholders' equity.	National Oilwell Varco Inc.'s equity turnover improved from 2010 to 2011 and from 2011 to 2012.