Stock Analysis on Net
Stock Analysis on Net

National Oilwell Varco Inc. (NYSE:NOV)

$22.49

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

Common-Size Income Statement
Quarterly Data

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National Oilwell Varco Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 Sep 30, 2011 Jun 30, 2011 Mar 31, 2011
Revenue
Cost of revenue
Gross profit
Selling, general and administrative
Goodwill and intangible asset impairment
Operating profit (loss)
Interest and financial costs
Interest income
Equity income (loss) in unconsolidated affiliates
Other income (expense), net
Income (loss) from continuing operations before income taxes
Provision for income taxes
Income (loss) from continuing operations
Income from discontinued operations
Net income (loss)
Net (income) loss attributable to noncontrolling interests
Net income (loss) attributable to Company

Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).

Revenue and Gross Profit Trends
Revenue consistently represents 100% of the total across all reported quarters. Gross profit margin exhibited a declining trend from 2011 through 2016. Initially, gross profit remained above 30% during 2011 but gradually decreased, dropping to just above 2% by mid-2016. This decline indicates increasing costs relative to revenue over time, reaching a critical low in 2016.
Cost of Revenue
The cost of revenue percentage steadily increased, moving from approximately 69% in 2011 to nearly 98% by mid-2016. The rise in cost of revenue as a percentage of revenue directly contributed to the reduction in gross profit margins, indicating worsening efficiency or higher input costs.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses fluctuated over the period, starting near 11.6% and dipping below 9% at times during 2012 and 2014. However, from 2015 onward, SG&A percentages increased again significantly, reaching almost 20% by early 2016. This escalation added pressure on overall profitability.
Goodwill and Intangible Asset Impairment
There were impairment charges recorded intermittently, particularly notable during late 2014 and early 2016, with a pronounced impairment near -60% of revenue in March 2015, severely impacting operating results in that period.
Operating Profit (Loss)
Operating profit margins mirrored the trends in gross profit and SG&A. From healthy levels around 20% in early years, operating profit gradually declined, eventually showing a significant operating loss by late 2015 and 2016, heavily influenced by impairments and rising costs.
Interest and Financial Costs and Income
Interest and financial costs increased slightly over time, from roughly -0.45% to nearly -1.74% by mid-2016, while interest income remained minimal and relatively stable. This suggests increasing debt expenses over the period.
Equity Income from Affiliates
Equity income contributed positively but with volatility, showing a decline and turning negative in the final quarters, implying weaker performance or losses in affiliated entities towards the end of the period.
Other Income (Expense), Net
Other net income/expense fluctuated, with mostly minor negative effects, punctuated by a sharp decline in late 2014, adding to profit pressures.
Income Before Taxes and Tax Provision
Income from continuing operations before income taxes followed the operating profit trend, decreasing from approximately 19% to significant negative levels by 2016. Tax provision rates decreased over time, turning positive in 2015 and 2016, possibly due to tax benefits from losses.
Net Income
Net income as a percentage of revenue declined steadily over the entire period. Initially above 12%, it dropped to negative territory by late 2015, coinciding with increasing impairments and losses, indicating deteriorated overall profitability.
Summary of Financial Performance
The overall financial performance indicates a steady decline in profitability from 2011 through 2016, driven largely by rising cost of revenue, increased SG&A expenses, and impairment charges. These factors culminated in significant operating and net losses by 2015 and 2016. The company's efficiency and cost management weakened, and financial expenses increased, further pressuring earnings. There is evidence of strain in affiliated investments as well. The tax provisions reflect the impact of declining earnings and losses toward the latter periods.