Stock Analysis on Net

National Oilwell Varco Inc. (NYSE:NOV)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 3, 2016.

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

National Oilwell Varco Inc., operating profit margin, long-term trends, calculation

Microsoft Excel

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


Operating Profit (Loss)
The operating profit demonstrated a consistent upward trend from 2005 to 2014, increasing from $477 million to a peak of $3,613 million. However, in 2015, the operating profit sharply declined to a loss of $390 million, indicating a significant reversal in the company's profitability.
Revenue
Revenue grew steadily over the period from 2005 through 2013, rising from $4,645 million to a peak of $22,869 million. From 2014 onwards, revenue declined notably to $21,440 million in 2014 and further to $14,757 million in 2015, reflecting a contraction in sales or market conditions impacting top-line performance.
Operating Profit Margin
The operating profit margin showed improvement from 10.27% in 2005 to a maximum of 21.72% in 2008, after which it fluctuated somewhat, generally staying in the range of 14.97% to 20.13% until 2014. In 2015, the margin turned negative to -2.64%, consistent with the reported operating loss, signaling a loss of operational efficiency or increased costs relative to revenues.
Overall Trends and Insights
The company experienced substantial growth in both revenue and operating profit for nearly a decade, reaching peaks around 2013-2014. The margins were relatively strong during this period, indicating effective cost control and profitability. The decline starting in 2014, culminating in an operating loss in 2015, suggests significant challenges potentially related to market conditions, cost pressures, or operational inefficiencies. This reversal warrants further investigation into causative factors impacting profitability and revenue generation.