Debt to Equity
since 2005
Calculation
National Oilwell Varco Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Short-term borrowings and long-term debt1 | ÷ | Total Company stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 0.24 | = | 3,930) | ÷ | 16,383) |
| Dec 31, 2014 | 0.15 | = | 3,166) | ÷ | 20,692) |
| Dec 31, 2013 | 0.14 | = | 3,150) | ÷ | 22,230) |
| Dec 31, 2012 | 0.16 | = | 3,149) | ÷ | 20,239) |
| Dec 31, 2011 | 0.03 | = | 510) | ÷ | 17,619) |
| Dec 31, 2010 | 0.06 | = | 887) | ÷ | 15,748) |
| Dec 31, 2009 | 0.06 | = | 883) | ÷ | 14,113) |
| Dec 31, 2008 | 0.07 | = | 874) | ÷ | 12,628) |
| Dec 31, 2007 | 0.13 | = | 891) | ÷ | 6,661) |
| Dec 31, 2006 | 0.17 | = | 840) | ÷ | 5,024) |
| Dec 31, 2005 | 0.20 | = | 841) | ÷ | 4,194) |
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 financial trajectory from 2005 to 2015 reflects a significant shift in capital structure, moving from a period of aggressive equity growth and minimal leverage to a phase of increased debt accumulation and equity erosion.
- Equity Accumulation and Contraction
- Total stockholders' equity experienced sustained growth for nearly a decade, rising from 4,194 million USD in 2005 to a peak of 22,230 million USD in 2013. This consistent expansion indicates a strong accumulation of retained earnings or capital injections during this window. However, a downward trend emerged after 2013, with equity declining to 16,383 million USD by 2015, representing a significant reduction in the company's book value.
- Debt Obligation Volatility
- Debt levels remained relatively stable between 2005 and 2010, followed by a notable decrease to 510 million USD in 2011. This low point was immediately followed by a sharp inflection in 2012, where borrowings surged to 3,149 million USD. This elevated debt level persisted through 2014 before increasing further to 3,930 million USD by the end of 2015.
- Debt-to-Equity Ratio Dynamics
- The debt-to-equity ratio exhibited a strong downward trend between 2005 and 2011, falling from 0.20 to a period low of 0.03, driven by the simultaneous growth of equity and the reduction of debt. The sudden increase in borrowings in 2012 caused the ratio to spike to 0.16. By 2015, the convergence of rising debt and falling equity resulted in the ratio reaching 0.24, the highest level observed in the analyzed timeframe.
Overall, the data indicates a transition from a highly conservative financial position characterized by low leverage and high equity to a more leveraged position by 2015, as the company's debt-to-equity ratio surpassed its initial 2005 levels.
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., debt to equity, long-term trends, comparison to competitors
| National Oilwell Varco Inc. | SLB N.V. | |
|---|---|---|
| Dec 31, 2015 | 0.24 | 0.53 |
| Dec 31, 2014 | 0.15 | 0.35 |
| Dec 31, 2013 | 0.14 | 0.33 |
| Dec 31, 2012 | 0.16 | 0.33 |
| Dec 31, 2011 | 0.03 | 0.32 |
| Dec 31, 2010 | 0.06 | 0.26 |
| Dec 31, 2009 | 0.06 | 0.29 |
| Dec 31, 2008 | 0.07 | 0.31 |
| Dec 31, 2007 | 0.13 | 0.37 |
| Dec 31, 2006 | 0.17 | 0.57 |
| Dec 31, 2005 | 0.20 | 0.58 |
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., debt to equity, long-term trends, comparison to industry (energy)
| National Oilwell Varco Inc. | Energy | |
|---|---|---|
| Dec 31, 2015 | 0.24 | 0.30 |
| Dec 31, 2014 | 0.15 | 0.22 |
| Dec 31, 2013 | 0.14 | 0.19 |
| Dec 31, 2012 | 0.16 | 0.15 |
| Dec 31, 2011 | 0.03 | 0.16 |
| Dec 31, 2010 | 0.06 | 0.17 |
| Dec 31, 2009 | 0.06 | 0.19 |
| Dec 31, 2008 | 0.07 | 0.19 |
| Dec 31, 2007 | 0.13 | 0.15 |
| Dec 31, 2006 | 0.17 | 0.19 |
| Dec 31, 2005 | 0.20 | 0.16 |
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).