National Oilwell Varco Inc. (NYSE:NOV)

Customer Relationships

The value of customer relationships increased steadily from 3,044 million USD in 2011 to 4,093 million USD in 2013, stabilizing around 4,090 million USD in 2014 and slightly decreasing to 4,016 million USD in 2015. This indicates growth followed by a marginal decline or stabilization in this asset category.

Trademarks

Trademarks showed a consistent upward trend from 716 million USD in 2011 to 893 million USD in 2013. Thereafter, the value slightly declined to 871 million USD in 2014 but recovered somewhat to 880 million USD in 2015, suggesting relative stability with minor fluctuations.

Indefinite-Lived Trade Names

This category remained flat at 643 million USD from 2011 through 2013, then experienced a decline to 536 million USD in 2014 and further to 384 million USD in 2015, reflecting a significant reduction in the carrying value of these assets over the latter years.

Other Intangible Assets

Other intangible assets increased from 751 million USD in 2011 to a peak of 1,175 million USD in 2013, followed by a decline to 1,058 million USD in 2014 and 1,040 million USD in 2015, indicating a decrease after strong growth in earlier years.

Identified Intangibles, Gross

The gross value of identified intangible assets exhibited robust growth from 5,154 million USD in 2011 to 6,804 million USD in 2013, then decreased modestly to 6,559 million USD in 2014 and further to 6,320 million USD in 2015, mirroring patterns seen in the components.

Accumulated Amortization

Accumulated amortization consistently increased in absolute terms, from -1,081 million USD in 2011 to -2,471 million USD in 2015, reflecting ongoing amortization expense and wear on intangible assets over time.

Identified Intangibles, Net Book Value

Net book value of identified intangible assets rose from 4,073 million USD in 2011 to a peak of 5,055 million USD in 2013, followed by a decline to 4,444 million USD in 2014 and further down to 3,849 million USD in 2015, indicating amortization and possible impairment impacts on net asset values.

Goodwill

Goodwill showed strong growth from 6,151 million USD in 2011 to 9,049 million USD in 2013, then decreased to 8,539 million USD in 2014 and dropped significantly to 6,980 million USD in 2015, suggesting asset disposals, impairments, or other adjustments affecting goodwill balances.

Intangible Assets, Total

Total intangible assets increased notably from 10,224 million USD in 2011 to 14,104 million USD in 2013, before declining to 12,983 million USD in 2014 and further to 10,829 million USD in 2015, reflecting the aggregate effect of trends across identified intangibles and goodwill.

Total Assets

The reported total assets increased steadily from 25,515 million USD in 2011 to a peak of 34,812 million USD in 2013, followed by a decline to 26,725 million USD in 2015. The adjusted total assets, which exclude goodwill, follow a similar pattern, rising from 19,364 million USD in 2011 to 25,763 million USD in 2013, then declining to 19,745 million USD in 2015. This indicates a growth phase in the early years, with a contraction in asset base in the later years.

Stockholders’ Equity

Reported total company stockholders’ equity grew from 17,619 million USD in 2011 to 22,230 million USD in 2013, then declined to 16,383 million USD in 2015. The adjusted stockholders’ equity data shows a similar trend, rising from 11,468 million USD in 2011 to 13,181 million USD in 2013, and decreasing to 9,403 million USD by 2015. Both reported and adjusted equity reflect diminishing shareholder value after 2013, consistent with the reduction in total assets.

Net Income Attributable to the Company

The reported net income shows positive earnings from 2011 to 2014, with values increasing from 1,994 million USD in 2011 to 2,502 million USD in 2014. However, in 2015, a significant loss of 769 million USD was recorded. Contrastingly, the adjusted net income, which excludes goodwill impairment or related adjustments, remains positive across all years, including 2015 where it shows 716 million USD. This discrepancy suggests that the loss in 2015 reported figures likely involves goodwill write-downs or other non-operational charges.

Overall Insights

The data reflects a growth phase in both assets and equity from 2011 to 2013, followed by a contraction through 2015. The divergence between reported and adjusted net income in 2015 highlights non-recurring or accounting adjustments impacting the reported financial results. Despite these challenges, the adjusted net income suggests ongoing positive operational profitability in 2015, indicating that the underlying business remained profitable excluding impairment effects.

Net Profit Margin

The reported net profit margin shows a declining trend from 13.6% in 2011 down to -5.21% in 2015, indicating a significant deterioration in profitability by the end of the period. The adjusted net profit margin, however, remains positive in 2015 at 4.85%, suggesting that goodwill adjustments positively affect profitability metrics and mitigate the apparent loss shown in reported figures.

Total Asset Turnover

Reported total asset turnover increased from 0.57 in 2011 to 0.66 in 2013, then declined steadily to 0.55 in 2015. The adjusted total asset turnover follows a similar pattern but at consistently higher levels, peaking at 0.89 in 2013 before reducing to 0.75 in 2015. This indicates that asset utilization efficiency improved initially but weakened during the latter years, with adjustments reflecting more favorable turnover ratios.

Financial Leverage

Both reported and adjusted financial leverage increased over the period. Reported leverage rose gradually from 1.45 in 2011 to 1.63 in 2015, while adjusted leverage increased from 1.69 to 2.1 over the same timeframe. This suggests an increasing reliance on debt or other liabilities relative to equity, with adjustments indicating a higher degree of leverage when goodwill is accounted for.

Return on Equity (ROE)

Reported ROE fluctuated during the period, increasing slightly from 11.32% in 2011 to 12.31% in 2012, then declining and eventually turning negative at -4.69% in 2015. The adjusted ROE remained consistently higher, peaking at 20.59% in 2014 before dropping to 7.61% in 2015, but still positive. This divergence highlights the impact of goodwill adjustments on shareholders’ returns, which otherwise appear unfavorable in reported figures.

Return on Assets (ROA)

Reported ROA showed a generally stable pattern until 2014, with values around 7-8%, but decreased sharply to -2.88% in 2015. Adjusted ROA maintained higher values throughout, ranging from 9.03% to 10.3% until 2014, with a reduction to 3.63% in 2015, remaining positive despite the downturn. This suggests that adjusted asset profitability remained stronger than reported figures imply during the adverse period.

Overall Insights

The analysis reveals a deterioration in reported profitability and asset efficiency metrics by the final year under review, coinciding with negative margins and returns. Adjusted data, accounting for goodwill, exhibit more resilient performance indicators, mitigating some negative trends evident in reported results. Increasing financial leverage over time may have contributed to volatility in profitability and returns. The divergence between reported and adjusted results underscores the material impact of goodwill adjustments on financial performance assessments.

Net Income (Loss) Trends

Reported net income attributable to the company demonstrated an overall positive trend from 2011 through 2014, increasing from $1,994 million to $2,502 million. However, a sharp decline occurred in 2015, with reported net income falling to a loss of $769 million. In contrast, adjusted net income, which accounts for goodwill adjustments, maintained positive values throughout the period, including in 2015 where it showed a notable recovery to $716 million, mitigating the impact of the reported loss.

Net Profit Margin Trends

Both reported and adjusted net profit margins mirrored the net income pattern. From 2011 to 2014, the reported net profit margin declined gradually from 13.6% to 11.67%, indicating a slight compression in profitability margins despite growing net income figures. In 2015, the reported net profit margin turned negative at -5.21%, reflective of the net loss reported that year. Adjusted net profit margins were identical to reported margins from 2011 to 2014, but diverged significantly in 2015, showing a positive margin of 4.85%, which suggests that excluding goodwill impairments and other non-recurring items reveals an underlying profitability despite the reported loss.

Insights

The data indicates the company experienced stable and growing profitability until 2014, followed by a significant impairment or non-recurring charge in 2015 impacting reported results. Adjustments for goodwill losses improve the profitability view, indicating that operational performance may have remained sound despite the reported net loss. This divergence in 2015 highlights the importance of analyzing adjusted figures to gain a clearer perspective on the company’s ongoing financial health.

The data reveals significant trends in both reported and goodwill adjusted financial metrics over the five-year period ending in 2015. A detailed examination of the patterns provides insight into the company's asset base and operational efficiency.

Total Assets

Reported total assets exhibited a growth trend from 25,515 million US dollars in 2011, peaking at 34,812 million in 2013, before declining to 26,725 million by the end of 2015. This indicates an initial expansion in the asset base followed by a considerable reduction in the latter years.

Adjusted total assets, excluding goodwill, followed a similar trajectory with increases from 19,364 million in 2011 to 25,763 million in 2013 and subsequent decreases to 19,745 million in 2015. The adjustment highlights that a notable portion of the reported assets is attributable to goodwill, impacting the total asset figures.

Total Asset Turnover

The reported total asset turnover ratio rose from 0.57 in 2011 to a high of 0.66 in 2013, reflecting improved efficiency in generating sales from assets during the expansion phase. However, it then declined to 0.55 by 2015, suggesting diminished asset utilization or sales generation capability relative to the asset base in later years.

Adjusted total asset turnover ratios were consistently higher than the reported figures, starting at 0.76 in 2011 and increasing to 0.89 in 2013. After 2013, the ratio declined to 0.75 in 2015, mirroring the reported turnover’s downward trend but indicating a relatively better asset efficiency when goodwill is excluded.

Overall, the analysis indicates that the company expanded its asset base significantly up to 2013 but faced contraction thereafter. This contraction was accompanied by decreased asset turnover ratios, suggesting challenges in maintaining operational efficiency amidst changing asset levels. The adjusted figures reaffirm that goodwill plays a material role in the asset composition, and excluding it reveals a clearer picture of core asset performance and utilization trends over the analyzed period.

The financial data reveals significant trends in the asset base, equity position, and financial leverage over the five-year period under consideration.

Total Assets

Reported total assets increased steadily from 25,515 million USD in 2011 to a peak of 34,812 million USD in 2013 before declining to 26,725 million USD in 2015. Adjusted total assets, which exclude goodwill, follow a similar trajectory but at lower absolute levels, rising from 19,364 million USD in 2011 to 25,763 million USD in 2013, then decreasing to 19,745 million USD by 2015. This pattern indicates growth in asset holdings until 2013, followed by a reduction towards the end of the period, with the adjustment signaling material goodwill impairments or write-offs affecting the asset base.

Company Stockholders’ Equity

Reported stockholders’ equity exhibited growth from 17,619 million USD in 2011 to a high of 22,230 million USD in 2013, subsequently declining to 16,383 million USD by 2015. Adjusted equity—excluding goodwill—also increased initially from 11,468 million USD to 13,181 million USD in 2013, with a downward trend thereafter to 9,403 million USD in 2015. The disparity between reported and adjusted figures suggests that goodwill constituted a substantial portion of equity, whose diminution over time reduced the net equity when adjusted. The decline post-2013 may reflect operating challenges, impairments, or restructuring impacts.

Financial Leverage

Reported financial leverage ratios rose modestly from 1.45 in 2011 to 1.63 in 2015, indicating an incremental increase in total assets relative to equity. Adjusted leverage ratios, which consider equity and assets net of goodwill, show a more pronounced increase from 1.69 to 2.10 over the same timeframe. The higher adjusted leverage implies increased reliance on debt or liabilities to finance assets excluding intangible goodwill, signaling a potentially heightened risk profile and reduced buffer from tangible equity.

Overall, the data illustrates a period of asset expansion through 2013 followed by contraction, aligned with declining adjusted equity levels and rising financial leverage when goodwill is excluded. This suggests the company experienced significant goodwill impairments or write-downs, impacting net asset and equity values and leading to increased leverage metrics that may have implications for financial stability and credit risk assessments.

The financial data reveals several notable trends across the five-year period from 2011 to 2015. The reported net income attributable to the company demonstrates a general increase from 2011 through 2014, rising from $1,994 million to a peak of $2,502 million in 2014. However, there is a significant decline in 2015, with reported net income turning negative to a loss of $769 million. In contrast, adjusted net income, which accounts for goodwill adjustments, remains positive throughout the period but exhibits a pronounced decrease in 2015, falling to $716 million from the previous year's $2,502 million.

Regarding stockholders’ equity, the reported total equity rises steadily from $17,619 million in 2011 to $22,230 million in 2013, before experiencing a decline in the subsequent years, ending at $16,383 million in 2015. The adjusted stockholders’ equity follows a similar pattern, increasing from $11,468 million in 2011 to $13,181 million in 2013, then decreasing to $9,403 million by 2015. The adjustments cause the equity values to be consistently lower than the reported figures, indicating significant goodwill or similar intangible assets adjustments that reduce shareholders' equity.

Return on equity (ROE) metrics further illustrate the company’s performance fluctuations. Reported ROE trends correspond with net income changes, improving from 11.32% in 2011 to 12.31% in 2012, then slightly declining in 2013 to 10.47%, rebounding to 12.09% in 2014, and falling sharply to -4.69% in 2015. Adjusted ROE shows a more positive outlook, consistently higher than reported ROE in each year, peaking at 20.59% in 2014 before dropping to 7.61% in 2015. Despite the decrease, the adjusted ROE remains positive in 2015, reflecting better profitability when excluding goodwill-related adjustments.

In summary, the period under review is marked by growth in net income and equity through 2013 and 2014, followed by a notable decline in 2015. Adjusted figures suggest that once goodwill and similar items are considered, the company's profitability and equity base are less volatile but still negatively impacted in the latest year. The disparity between reported and adjusted results underscores the importance of goodwill-related factors in evaluating the company’s financial health and return to shareholders.

The financial data reveals several noteworthy trends over the five-year period analyzed. Reported net income attributable to the company shows an overall increase from 2011 to 2014, rising from 1994 million US dollars to a peak of 2502 million in 2014. However, 2015 experienced a significant decline, with reported net income turning negative to -769 million US dollars. Adjusted net income, which accounts for goodwill adjustments, follows a similar upward trajectory until 2014 but demonstrates a less severe drop in 2015, remaining positive at 716 million US dollars.

Regarding total assets, the reported values increased steadily from 25515 million US dollars in 2011 to a high of 34812 million in 2013, before slightly decreasing in 2014 and more notably declining to 26725 million in 2015. Adjusted total assets, which likely exclude goodwill or other intangible assets, show a consistent declining trend after peaking at 25763 million in 2013, falling to 19745 million by 2015. This indicates a reduction in asset base when adjustments are considered.

Return on assets (ROA), both reported and adjusted, reflects these underlying performance patterns. Reported ROA remained relatively stable and positive from 2011 through 2014, fluctuating between approximately 6.68% and 7.91%, before sharply turning negative to -2.88% in 2015. Adjusted ROA, which tends to be higher than the reported ROA during the earlier years, also follows a similar pattern but maintains a positive figure in 2015 at 3.63%, suggesting a more favorable performance when adjustments are applied.

Overall, the data suggests that the company experienced growth in profitability and asset base through 2014, followed by a notable downturn in 2015, with reported figures indicating a loss and asset reduction, while adjusted measures show less pronounced declines. The adjustments related to goodwill significantly impact the interpretation of the company’s financial health, particularly in the most recent year.