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.

Common-Size Balance Sheet: Assets 

National Oilwell Varco Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Cash and cash equivalents 7.78 10.54 9.87 10.54 13.85
Receivables, net 10.95 13.16 14.06 13.72 12.90
Inventories, net 17.50 15.74 16.10 18.71 15.79
Costs in excess of billings 4.68 5.60 4.42 3.89 2.32
Deferred income taxes 1.41 1.33 1.07 1.11 1.32
Prepaid and other current assets 1.84 1.80 1.65 1.82 1.27
Current assets 44.16% 48.16% 47.18% 49.80% 47.46%
Property, plant and equipment, net 11.69 10.02 9.79 9.35 9.58
Deferred income taxes 1.83 1.50 1.07 1.31 1.05
Goodwill 26.12 25.44 25.99 22.78 24.11
Intangibles, net 14.40 13.24 14.52 15.06 15.96
Investment in unconsolidated affiliates 1.22 1.08 1.12 1.25 1.53
Other assets 0.58 0.57 0.33 0.44 0.31
Noncurrent assets 55.84% 51.84% 52.82% 50.20% 52.54%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The analysis of the financial data reveals several noteworthy trends and patterns over the five-year period ending December 31, 2015.

Cash and cash equivalents
The proportion of cash and cash equivalents relative to total assets declined from 13.85% in 2011 to 7.78% in 2015. This steady decrease suggests a reduction in liquidity or a shift of resources from cash holdings to other asset categories.
Receivables, net
Receivables as a percentage of total assets increased from 12.9% in 2011 to a peak of 14.06% in 2013. However, after 2013, the ratio declined to 10.95% by 2015, indicating improved collection efficiency or a contraction in credit sales.
Inventories, net
Inventories showed some fluctuation but ended higher in 2015 at 17.5% compared to 15.79% in 2011. The rise in inventory levels implies an increased investment in stock or potentially slower inventory turnover.
Costs in excess of billings
This asset category grew steadily from 2.32% in 2011 to a high of 5.6% in 2014, then slightly decreased to 4.68% in 2015, indicating growing unbilled costs related to contracts, possibly reflecting an increased backlog or project activity until 2014, with a mild moderation thereafter.
Deferred income taxes (current)
Current deferred income taxes fluctuated modestly, decreasing initially from 1.32% in 2011 to 1.07% in 2013, then rose gradually to 1.41% in 2015. This pattern may relate to varying differences in taxable income and accounting income across the years.
Prepaid and other current assets
There was a gradual increase in prepaid and other current assets from 1.27% in 2011 to 1.84% in 2015, suggesting slightly higher prepaid expenses or miscellaneous current assets over the period.
Current assets
Overall current assets as a percentage of total assets increased from 47.46% in 2011 to nearly 50% in 2012, then declined steadily to 44.16% in 2015. This indicates a shift in asset composition, with a reduced emphasis on liquidity and short-term assets in later years.
Property, plant and equipment, net
The share of property, plant, and equipment in total assets increased consistently from 9.58% in 2011 to 11.69% in 2015. This rising trend reflects ongoing capital investments or asset revaluation, enhancing the fixed asset base over time.
Deferred income taxes (noncurrent)
Noncurrent deferred income taxes increased noticeably from 1.05% in 2011 to 1.83% in 2015, indicating growing deferred tax liabilities or timing differences in income recognition related to long-term assets and obligations.
Goodwill
Goodwill as a proportion of total assets experienced minor fluctuations but generally increased from 24.11% in 2011 to 26.12% in 2015. The increase suggests acquisitions or asset revaluations contributing to intangible asset growth.
Intangibles, net
Net intangible assets decreased from 15.96% in 2011 to 13.24% in 2014, followed by a slight recovery to 14.4% in 2015, indicating some amortization or impairment balanced by new additions or revaluations.
Investment in unconsolidated affiliates
Investment in unconsolidated affiliates declined gradually from 1.53% in 2011 to 1.08% in 2014, with a slight increase to 1.22% in 2015, pointing to minor divestitures or changes in equity investments.
Other assets
Other assets increased slightly from 0.31% in 2011 to 0.58% in 2015, though representing a relatively small portion of total assets, indicating minimal changes in miscellaneous long-term assets.
Noncurrent assets
The total percentage of noncurrent assets in the asset base decreased from 52.54% in 2011 to 50.2% in 2012, then generally rose to 55.84% by 2015. The overall trend indicates growing emphasis on long-term assets, possibly driven by investments in property, plant, equipment, goodwill, and other intangibles.
Total assets
Total assets always equal 100% by definition; the changes in subcomponents reflect shifting allocation between current and noncurrent assets over the observed interval.

In summary, the financial data reflect a strategic shift favoring noncurrent assets over the five years, with increased fixed assets and goodwill. Concurrently, liquidity in terms of cash and current assets declined moderately. The fluctuating receivables and inventories suggest operational adjustments in working capital management. Deferred tax assets and liabilities rose, reflecting evolving tax positions. Overall, the asset structure shows a trend towards capital-intensive and intangible assets, implying long-term growth investment and acquisition activities.