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 performance from 2005 to 2015 is characterized by a period of significant growth and margin expansion, followed by a phase of stability, and concluding with a sharp contraction in 2015.
- Margin Expansion and Peak Profitability (2005–2008)
- A strong upward trend in profitability is observed during this period. The net profit margin increased consistently from 6.18% in 2005 to a peak of 14.53% in 2008. This growth coincided with a rapid increase in revenue, which rose from 4,645 million US$ to 13,431 million US$, indicating that net income grew at a faster rate than revenue.
- Operational Stability and Revenue Scaling (2009–2014)
- Between 2009 and 2014, the company maintained relatively stable net profit margins, fluctuating within a range of 10.18% to 13.71%. While revenue reached its highest point in 2013 at 22,869 million US$, the net profit margin experienced a slight downward trajectory during the latter part of this window, dipping to 10.18% in 2013 before recovering slightly to 11.67% in 2014.
- Financial Contraction and Net Loss (2015)
- A severe reversal in financial performance occurred in 2015. Revenue declined significantly to 14,757 million US$, and the company transitioned from a net income of 2,502 million US$ in 2014 to a net loss of 769 million US$. Consequently, the net profit margin collapsed to -5.21%, representing the first instance of negative profitability within the observed timeframe.
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Comparison to Competitors
National Oilwell Varco Inc., net profit margin, long-term trends, comparison to competitors
| National Oilwell Varco Inc. | SLB N.V. | |
|---|---|---|
| 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% | 4.04% |
| Dec 31, 2014 | 11.67% | 9.21% |
| Dec 31, 2013 | 10.18% | 9.44% |
| Dec 31, 2012 | 12.43% | 10.84% |
| Dec 31, 2011 | 13.60% | 8.58% |
| Dec 31, 2010 | 13.71% | 8.29% |
| Dec 31, 2009 | 11.56% | 5.89% |
| Dec 31, 2008 | 14.53% | 5.80% |
| Dec 31, 2007 | 13.66% | 9.37% |
| Dec 31, 2006 | 9.74% | 9.82% |
| Dec 31, 2005 | 6.18% | 8.84% |
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).