Return on Equity (ROE)
since 2005
Calculation
National Oilwell Varco Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Company1 | ÷ | Total Company stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | -4.69% | = | 100 | × | (769) | ÷ | 16,383) |
| Dec 31, 2014 | 12.09% | = | 100 | × | 2,502) | ÷ | 20,692) |
| Dec 31, 2013 | 10.47% | = | 100 | × | 2,327) | ÷ | 22,230) |
| Dec 31, 2012 | 12.31% | = | 100 | × | 2,491) | ÷ | 20,239) |
| Dec 31, 2011 | 11.32% | = | 100 | × | 1,994) | ÷ | 17,619) |
| Dec 31, 2010 | 10.59% | = | 100 | × | 1,667) | ÷ | 15,748) |
| Dec 31, 2009 | 10.41% | = | 100 | × | 1,469) | ÷ | 14,113) |
| Dec 31, 2008 | 15.46% | = | 100 | × | 1,952) | ÷ | 12,628) |
| Dec 31, 2007 | 20.07% | = | 100 | × | 1,337) | ÷ | 6,661) |
| Dec 31, 2006 | 13.62% | = | 100 | × | 684) | ÷ | 5,024) |
| Dec 31, 2005 | 6.84% | = | 100 | × | 287) | ÷ | 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 between 2005 and 2015 is characterized by an initial phase of rapid growth, a prolonged period of relative stability, and a sharp downturn in the final year.
- Return on Equity Growth and Peak
- A significant upward trend in Return on Equity (ROE) was observed from 2005 to 2007, where the ratio rose from 6.84% to a peak of 20.07%. This growth was primarily driven by a substantial increase in net income, which climbed from 287 million US dollars to 1,337 million US dollars over this three-year period.
- Period of Stabilization
- Between 2008 and 2014, ROE entered a phase of moderate fluctuation, generally maintaining a range between 10.41% and 15.46%. While net income continued to grow, reaching a peak of 2,502 million US dollars in 2014, the ROE did not return to its 2007 peak. This is attributed to the concurrent and aggressive expansion of total stockholders' equity, which increased from 12,628 million US dollars in 2008 to 20,692 million US dollars in 2014, thereby increasing the equity base against which income was measured.
- Fiscal Reversal in 2015
- A sharp decline in performance occurred in 2015, marked by a transition from consistent profitability to a net loss of 769 million US dollars. This resulted in a negative ROE of -4.69%. This period also recorded a contraction in total stockholders' equity to 16,383 million US dollars, signaling a significant erosion of value and a reversal of the growth patterns established over the previous decade.
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., ROE, long-term trends, comparison to competitors
| National Oilwell Varco Inc. | SLB N.V. | |
|---|---|---|
| Dec 31, 2015 | -4.69% | 5.81% |
| Dec 31, 2014 | 12.09% | 14.37% |
| Dec 31, 2013 | 10.47% | 17.06% |
| Dec 31, 2012 | 12.31% | 15.80% |
| Dec 31, 2011 | 11.32% | 15.98% |
| Dec 31, 2010 | 10.59% | 13.66% |
| Dec 31, 2009 | 10.41% | 16.39% |
| Dec 31, 2008 | 15.46% | 32.23% |
| Dec 31, 2007 | 20.07% | 34.80% |
| Dec 31, 2006 | 13.62% | 35.60% |
| Dec 31, 2005 | 6.84% | 29.07% |
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., ROE, long-term trends, comparison to industry (energy)
| National Oilwell Varco Inc. | Energy | |
|---|---|---|
| Dec 31, 2015 | -4.69% | 4.61% |
| Dec 31, 2014 | 12.09% | 15.28% |
| Dec 31, 2013 | 10.47% | 16.85% |
| Dec 31, 2012 | 12.31% | 22.06% |
| Dec 31, 2011 | 11.32% | 22.94% |
| Dec 31, 2010 | 10.59% | 18.51% |
| Dec 31, 2009 | 10.41% | 13.29% |
| Dec 31, 2008 | 15.46% | 21.20% |
| Dec 31, 2007 | 20.07% | 25.23% |
| Dec 31, 2006 | 13.62% | 27.51% |
| Dec 31, 2005 | 6.84% | 28.17% |
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).