Current Ratio
since 2005
Calculation
National Oilwell Varco Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 2.78 | = | 11,801) | ÷ | 4,249) |
| Dec 31, 2014 | 2.19 | = | 16,162) | ÷ | 7,374) |
| Dec 31, 2013 | 2.46 | = | 16,423) | ÷ | 6,678) |
| Dec 31, 2012 | 2.78 | = | 15,678) | ÷ | 5,649) |
| Dec 31, 2011 | 2.24 | = | 12,110) | ÷ | 5,416) |
| Dec 31, 2010 | 2.32 | = | 10,535) | ÷ | 4,536) |
| Dec 31, 2009 | 2.30 | = | 9,598) | ÷ | 4,174) |
| Dec 31, 2008 | 1.72 | = | 9,657) | ÷ | 5,624) |
| Dec 31, 2007 | 1.89 | = | 7,594) | ÷ | 4,027) |
| Dec 31, 2006 | 1.86 | = | 4,966) | ÷ | 2,665) |
| Dec 31, 2005 | 2.53 | = | 2,998) | ÷ | 1,187) |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The liquidity position of the organization remained robust between 2005 and 2015, with the current ratio consistently remaining well above 1.0. This indicates a sustained ability to meet short-term obligations using current assets. While both current assets and current liabilities experienced significant growth over the first decade of the period, the current ratio exhibited specific phases of contraction and expansion.
- Asset and Liability Growth Trends
- A period of substantial expansion in the balance sheet is observed from 2005 to 2013. Current assets grew from 2,998 million US$ to a peak of 16,423 million US$, representing a more than five-fold increase. Concurrently, current liabilities increased from 1,187 million US$ in 2005 to a peak of 7,374 million US$ in 2014. This simultaneous growth suggests a scaling of operations and a corresponding increase in short-term financing or operational payables.
- Current Ratio Fluctuations
- The current ratio began at 2.53 in 2005 and experienced a downward trend reaching a low of 1.72 by 2008. This decline was driven by current liabilities growing at a faster rate than current assets during that specific window. A recovery occurred in 2009, where the ratio rose to 2.30, subsequently stabilizing between 2.19 and 2.78 for the remainder of the period.
- Liquidity Shift in 2015
- A significant shift in the liquidity profile is evident in 2015. While current assets decreased to 11,801 million US$, current liabilities dropped more precipitously to 4,249 million US$. This substantial reduction in short-term obligations resulted in the current ratio rising to 2.78, matching the highest level recorded since 2012 and strengthening the overall short-term solvency position.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
National Oilwell Varco Inc., current ratio, long-term trends, comparison to competitors
| National Oilwell Varco Inc. | SLB N.V. | |
|---|---|---|
| Dec 31, 2015 | 2.78 | 1.91 |
| Dec 31, 2014 | 2.19 | 1.74 |
| Dec 31, 2013 | 2.46 | 1.94 |
| Dec 31, 2012 | 2.78 | 1.95 |
| Dec 31, 2011 | 2.24 | 1.95 |
| Dec 31, 2010 | 2.32 | 1.67 |
| Dec 31, 2009 | 2.30 | 1.88 |
| Dec 31, 2008 | 1.72 | 1.59 |
| Dec 31, 2007 | 1.89 | 1.47 |
| Dec 31, 2006 | 1.86 | 1.42 |
| Dec 31, 2005 | 2.53 | 1.55 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
National Oilwell Varco Inc., current ratio, long-term trends, comparison to industry (energy)
| National Oilwell Varco Inc. | Energy | |
|---|---|---|
| Dec 31, 2015 | 2.78 | 1.09 |
| Dec 31, 2014 | 2.19 | 1.10 |
| Dec 31, 2013 | 2.46 | 1.16 |
| Dec 31, 2012 | 2.78 | 1.31 |
| Dec 31, 2011 | 2.24 | 1.18 |
| Dec 31, 2010 | 2.32 | 1.24 |
| Dec 31, 2009 | 2.30 | 1.17 |
| Dec 31, 2008 | 1.72 | 1.28 |
| Dec 31, 2007 | 1.89 | 1.27 |
| Dec 31, 2006 | 1.86 | 1.33 |
| Dec 31, 2005 | 2.53 | 1.38 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).