Net Profit Margin
since 2005
Calculation
National Oilwell Varco Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to Company1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | -5.21% | = | 100 | × | (769) | ÷ | 14,757) |
| Dec 31, 2014 | 11.67% | = | 100 | × | 2,502) | ÷ | 21,440) |
| Dec 31, 2013 | 10.18% | = | 100 | × | 2,327) | ÷ | 22,869) |
| Dec 31, 2012 | 12.43% | = | 100 | × | 2,491) | ÷ | 20,041) |
| Dec 31, 2011 | 13.60% | = | 100 | × | 1,994) | ÷ | 14,658) |
| Dec 31, 2010 | 13.71% | = | 100 | × | 1,667) | ÷ | 12,156) |
| Dec 31, 2009 | 11.56% | = | 100 | × | 1,469) | ÷ | 12,712) |
| Dec 31, 2008 | 14.53% | = | 100 | × | 1,952) | ÷ | 13,431) |
| Dec 31, 2007 | 13.66% | = | 100 | × | 1,337) | ÷ | 9,789) |
| Dec 31, 2006 | 9.74% | = | 100 | × | 684) | ÷ | 7,026) |
| Dec 31, 2005 | 6.18% | = | 100 | × | 287) | ÷ | 4,645) |
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 data over the reported periods reveals notable fluctuations and trends in key profitability metrics.
- Net income (loss) attributable to the company
- This metric shows a strong growth trajectory from 2005 through 2014, increasing from $287 million in 2005 to a peak of $2,502 million in 2014. There is a noticeable spike between 2006 and 2008, where net income nearly triples. After a slight dip in 2009 and 2010, net income resumed growth until 2014. However, 2015 experienced a significant downturn, turning to a net loss of $769 million, marking a sharp reversal in profitability compared to prior years.
- Revenue
- Revenues increased consistently from 2005 to 2013, beginning at $4,645 million in 2005 and reaching a high of $22,869 million in 2013. The period between 2010 to 2013 shows robust expansion, surpassing $20 billion in 2012 and 2013. Revenues then declined in 2014 and more markedly in 2015, dropping to $14,757 million, which is a substantial decrease relative to the previous peak years.
- Net profit margin
- The net profit margin follows a general upward trend from 2005 (6.18%) to 2008 (14.53%), demonstrating improving profitability relative to revenue. This margin declined somewhat after 2008 but remained fairly stable in the range of approximately 10% to 13.7% up to 2014. The most significant change occurs in 2015, with the margin dropping to -5.21%, reflecting the net loss and indicating operational challenges or increased costs adversely impacting profitability despite the sizable revenue base.
Overall, the data suggests a period of strong growth and profitability through the early 2010s, followed by a pronounced deterioration in financial performance in 2015, both in terms of absolute net income and profit margins, alongside a significant decline in revenue. This pattern may warrant further investigation into the underlying causes such as market conditions, operational efficiency, or extraordinary items impacting the most recent year's results.
Comparison to Competitors
National Oilwell Varco Inc., net profit margin, long-term trends, comparison to competitors
| National Oilwell Varco Inc. | Schlumberger Ltd. | |
|---|---|---|
| Dec 31, 2015 | -5.21% | 5.84% |
| Dec 31, 2014 | 11.67% | 11.19% |
| Dec 31, 2013 | 10.18% | 14.87% |
| Dec 31, 2012 | 12.43% | 13.03% |
| Dec 31, 2011 | 13.60% | 12.64% |
| Dec 31, 2010 | 13.71% | 15.55% |
| Dec 31, 2009 | 11.56% | 13.80% |
| Dec 31, 2008 | 14.53% | 20.01% |
| Dec 31, 2007 | 13.66% | 22.24% |
| Dec 31, 2006 | 9.74% | 19.29% |
| Dec 31, 2005 | 6.18% | 15.42% |
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., net profit margin, long-term trends, comparison to industry (energy)
| National Oilwell Varco Inc. | Energy | |
|---|---|---|
| Dec 31, 2015 | -5.21% | 2.26% |
| Dec 31, 2014 | 11.67% | 9.05% |
| Dec 31, 2013 | 10.18% | 9.91% |
| Dec 31, 2012 | 12.43% | 11.09% |
| Dec 31, 2011 | 13.60% | 9.04% |
| Dec 31, 2010 | 13.71% | 8.66% |
| Dec 31, 2009 | 11.56% | 6.20% |
| Dec 31, 2008 | 14.53% | 6.34% |
| Dec 31, 2007 | 13.66% | 9.80% |
| Dec 31, 2006 | 9.74% | 10.13% |
| Dec 31, 2005 | 6.18% | 9.36% |
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).