Return on Assets (ROA)
since 2005
Calculation
National Oilwell Varco Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Company1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | -2.88% | = | 100 | × | (769) | ÷ | 26,725) |
| Dec 31, 2014 | 7.45% | = | 100 | × | 2,502) | ÷ | 33,562) |
| Dec 31, 2013 | 6.68% | = | 100 | × | 2,327) | ÷ | 34,812) |
| Dec 31, 2012 | 7.91% | = | 100 | × | 2,491) | ÷ | 31,484) |
| Dec 31, 2011 | 7.82% | = | 100 | × | 1,994) | ÷ | 25,515) |
| Dec 31, 2010 | 7.23% | = | 100 | × | 1,667) | ÷ | 23,050) |
| Dec 31, 2009 | 6.82% | = | 100 | × | 1,469) | ÷ | 21,532) |
| Dec 31, 2008 | 9.09% | = | 100 | × | 1,952) | ÷ | 21,479) |
| Dec 31, 2007 | 11.04% | = | 100 | × | 1,337) | ÷ | 12,115) |
| Dec 31, 2006 | 7.58% | = | 100 | × | 684) | ÷ | 9,019) |
| Dec 31, 2005 | 4.30% | = | 100 | × | 287) | ÷ | 6,679) |
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 between 2005 and 2015 is characterized by an initial period of aggressive growth in profitability and asset efficiency, followed by a decade of stabilization, and concluding with a significant downturn in 2015.
- Return on Assets (ROA) Trends
- A strong upward trajectory is observed from 2005 to 2007, with ROA increasing from 4.30% to a peak of 11.04%. Following this peak, the ratio entered a period of relative stability between 2008 and 2014, generally fluctuating within a range of 6.68% to 9.09%. This stability indicates a consistent ability to generate earnings relative to the asset base during this window. However, 2015 marked a sharp reversal, with ROA plummeting to -2.88%.
- Asset Growth and Utilization
- Total assets expanded significantly over the analyzed period, growing from 6,679 million US dollars in 2005 to a peak of 34,812 million US dollars in 2013. A notable surge in the asset base occurred between 2007 and 2008, where assets nearly doubled. This rapid expansion coincided with a contraction in ROA from 11.04% to 9.09%, suggesting that the growth in the asset base initially outpaced the growth in net income.
- Profitability Analysis
- Net income showed consistent year-over-year growth from 2005 through 2012, rising from 287 million US dollars to 2,491 million US dollars. While profitability remained robust through 2014, 2015 saw a severe collapse in earnings, resulting in a net loss of 769 million US dollars. This loss, combined with a reduction in total assets to 26,725 million US dollars, drove the negative ROA observed at the end of the period.
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Comparison to Competitors
National Oilwell Varco Inc., ROA, long-term trends, comparison to competitors
| National Oilwell Varco Inc. | SLB N.V. | |
|---|---|---|
| Dec 31, 2015 | -2.88% | 3.05% |
| Dec 31, 2014 | 7.45% | 8.13% |
| Dec 31, 2013 | 6.68% | 10.03% |
| Dec 31, 2012 | 7.91% | 8.92% |
| Dec 31, 2011 | 7.82% | 9.05% |
| Dec 31, 2010 | 7.23% | 8.24% |
| Dec 31, 2009 | 6.82% | 9.37% |
| Dec 31, 2008 | 9.09% | 16.99% |
| Dec 31, 2007 | 11.04% | 18.58% |
| Dec 31, 2006 | 7.58% | 16.25% |
| Dec 31, 2005 | 4.30% | 12.21% |
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., ROA, long-term trends, comparison to industry (energy)
| National Oilwell Varco Inc. | Energy | |
|---|---|---|
| Dec 31, 2015 | -2.88% | 2.39% |
| Dec 31, 2014 | 7.45% | 8.02% |
| Dec 31, 2013 | 6.68% | 8.90% |
| Dec 31, 2012 | 7.91% | 11.40% |
| Dec 31, 2011 | 7.82% | 11.40% |
| Dec 31, 2010 | 7.23% | 9.36% |
| Dec 31, 2009 | 6.82% | 6.46% |
| Dec 31, 2008 | 9.09% | 10.21% |
| Dec 31, 2007 | 11.04% | 12.80% |
| Dec 31, 2006 | 7.58% | 14.07% |
| Dec 31, 2005 | 4.30% | 14.36% |
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).