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: Liabilities and Stockholders’ Equity 

National Oilwell Varco Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Accounts payable 2.33 3.54 3.66 3.81 3.53
Accrued vendor costs 1.68 2.43 1.53 1.41 1.10
Customer prepayments and billings 1.59 2.09 1.93 2.22 2.69
Fair value of derivatives 0.98 0.88 0.09 0.06 0.33
Warranty 0.91 0.81 0.65 0.62 0.83
Compensation 0.90 1.97 1.48 1.62 1.83
Taxes, non income 0.65 0.63 0.54 0.48 0.47
Insurance 0.42 0.38 0.38 0.34 0.40
Accrued commissions 0.27 0.29 0.28 0.24 0.00
Interest 0.03 0.03 0.03 0.04 0.03
Other 1.10 0.97 1.03 1.13 1.64
Accrued liabilities 8.55% 10.48% 7.94% 8.17% 9.31%
Billings in excess of costs 2.94 5.29 5.09 3.78 3.39
Current portion of long-term debt and short-term borrowings 0.01 0.45 0.00 0.00 1.38
Accrued income taxes 0.99 1.28 1.60 1.13 2.78
Deferred income taxes 1.09 0.92 0.90 1.06 0.84
Current liabilities 15.90% 21.97% 19.18% 17.94% 21.23%
Long-term debt, excluding current portion 14.70 8.98 9.05 10.00 0.62
Deferred income taxes 6.75 5.88 6.58 6.34 7.26
Other liabilities 1.06 1.28 1.04 1.06 1.41
Noncurrent liabilities 22.51% 16.14% 16.67% 17.40% 9.29%
Total liabilities 38.41% 38.11% 35.86% 35.34% 30.52%
Common stock, par value $.01 0.01 0.01 0.01 0.01 0.02
Additional paid-in capital 29.95 24.85 25.59 27.77 33.45
Accumulated other comprehensive income (loss) -5.81 -2.48 -0.01 0.34 -0.09
Retained earnings 37.14 39.27 38.27 36.16 35.68
Total Company stockholders’ equity 61.30% 61.65% 63.86% 64.28% 69.05%
Noncontrolling interests 0.29 0.24 0.29 0.37 0.43
Total stockholders’ equity 61.59% 61.89% 64.14% 64.66% 69.48%
Total liabilities and stockholders’ equity 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).

Liabilities
The proportion of total liabilities relative to total liabilities and stockholders' equity increased progressively from 30.52% in 2011 to 38.41% in 2015, indicating a growing reliance on liabilities for financing. Current liabilities showed some volatility, decreasing from 21.23% in 2011 to 15.9% in 2015 with fluctuations in between, while noncurrent liabilities nearly doubled from 9.29% to 22.51% over the same period, driven largely by an increase in long-term debt (excluding current portion), which rose sharply from 0.62% in 2011 to 14.7% in 2015.
Current Liabilities Components
Accounts payable as a percentage of total liabilities and stockholders’ equity slightly increased from 3.53% in 2011 to peak at 3.81% in 2012 but then declined steadily to 2.33% in 2015. Accrued vendor costs exhibited a noticeable rise until 2014, reaching 2.43%, before dropping to 1.68% in 2015. Customer prepayments and billings decreased steadily from 2.69% in 2011 to 1.59% in 2015. Billings in excess of costs increased notably between 2011 (3.39%) and 2014 (5.29%) then declined sharply to 2.94% in 2015.
Other Current Accruals and Liabilities
Accrued liabilities declined from 9.31% in 2011 to 7.94% in 2013, showed a considerable spike to 10.48% in 2014, and decreased again to 8.55% in 2015. Accrued income taxes decreased steadily from 2.78% to 0.99%, while deferred income taxes (current portion) showed a mild increase from 0.84% to 1.09% by 2015. Minor components such as accrued commissions and interest expenses maintained low and stable percentages throughout the period.
Noncurrent Liabilities
Noncurrent liabilities increased substantially from 9.29% in 2011 to 22.51% in 2015, largely influenced by the long-term debt component. Deferred income taxes (non-current) showed a gradual decline from 7.26% in 2011 to 6.75% in 2015. Other noncurrent liabilities remained relatively stable around 1%.
Stockholders’ Equity
Total stockholders' equity declined steadily from 69.48% in 2011 to 61.59% in 2015, confirming a gradual reduction of equity in the capital structure. Retained earnings increased from 35.68% to 39.27% by 2014 before decreasing to 37.14% in 2015. Additional paid-in capital followed a decreasing trend from 33.45% in 2011 to 24.85% in 2014 but rebounded to 29.95% in 2015. Accumulated other comprehensive income (loss) showed a significant downward trend, from a slight negative of -0.09% in 2011 to -5.81% in 2015, indicating increasing accumulated losses or negative adjustments.
Summary of Trends
Over the five-year period, there was a clear shift in capital structure with an increasing portion of total liabilities, notably driven by a sharp rise in long-term debt, and a corresponding decline in total equity percentage. Current liabilities fluctuated but generally declined, while noncurrent liabilities rose markedly. The negative trend in accumulated other comprehensive income suggests deteriorating other comprehensive elements affecting equity. Overall, the company became more leveraged, potentially increasing financial risk, while equity base diminished in relative terms.