Total Asset Turnover
since 2005
Calculation
National Oilwell Varco Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Revenue1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2015 | 0.55 | = | 14,757) | ÷ | 26,725) |
| Dec 31, 2014 | 0.64 | = | 21,440) | ÷ | 33,562) |
| Dec 31, 2013 | 0.66 | = | 22,869) | ÷ | 34,812) |
| Dec 31, 2012 | 0.64 | = | 20,041) | ÷ | 31,484) |
| Dec 31, 2011 | 0.57 | = | 14,658) | ÷ | 25,515) |
| Dec 31, 2010 | 0.53 | = | 12,156) | ÷ | 23,050) |
| Dec 31, 2009 | 0.59 | = | 12,712) | ÷ | 21,532) |
| Dec 31, 2008 | 0.63 | = | 13,431) | ÷ | 21,479) |
| Dec 31, 2007 | 0.81 | = | 9,789) | ÷ | 12,115) |
| Dec 31, 2006 | 0.78 | = | 7,026) | ÷ | 9,019) |
| Dec 31, 2005 | 0.70 | = | 4,645) | ÷ | 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 total asset turnover ratio exhibited significant volatility between 2005 and 2015, characterized by an initial period of efficiency gains, a sharp decline during a phase of rapid asset expansion, a partial recovery, and a final downturn coinciding with revenue contraction.
- Initial Efficiency Gains (2005–2007)
- A steady increase in asset turnover is observed, rising from 0.70 to a peak of 0.81. During this period, revenue growth outpaced the growth of the asset base, indicating an improvement in the company's ability to generate sales from its investments.
- Rapid Asset Expansion and Efficiency Decline (2008–2010)
- A significant downward trend occurred, with the ratio falling to 0.53 by 2010. This decline was primarily driven by a substantial increase in total assets, which jumped from 12,115 million in 2007 to 21,479 million in 2008. The asset base grew at a rate that far exceeded revenue growth, leading to a temporary reduction in asset utilization efficiency.
- Recovery and Revenue Peak (2011–2013)
- The turnover ratio entered a recovery phase, climbing to 0.66 by 2013. This improvement was supported by strong revenue growth, which reached a peak of 22,869 million in 2013, allowing the company to more effectively leverage the expanded asset base established in previous years.
- Late-Period Contraction (2014–2015)
- A decline in the turnover ratio to 0.55 is observed by the end of 2015. While total assets decreased from 33,562 million in 2014 to 26,725 million in 2015, the decline in revenue was more pronounced, falling from 21,440 million to 14,757 million over the same period.
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Comparison to Competitors
National Oilwell Varco Inc., total asset turnover, long-term trends, comparison to competitors
| National Oilwell Varco Inc. | SLB N.V. | |
|---|---|---|
| Dec 31, 2015 | 0.55 | 0.52 |
| Dec 31, 2014 | 0.64 | 0.73 |
| Dec 31, 2013 | 0.66 | 0.67 |
| Dec 31, 2012 | 0.64 | 0.68 |
| Dec 31, 2011 | 0.57 | 0.72 |
| Dec 31, 2010 | 0.53 | 0.53 |
| Dec 31, 2009 | 0.59 | 0.68 |
| Dec 31, 2008 | 0.63 | 0.85 |
| Dec 31, 2007 | 0.81 | 0.84 |
| Dec 31, 2006 | 0.78 | 0.84 |
| Dec 31, 2005 | 0.70 | 0.79 |
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., total asset turnover, long-term trends, comparison to industry (energy)
| National Oilwell Varco Inc. | Energy | |
|---|---|---|
| Dec 31, 2015 | 0.55 | 0.59 |
| Dec 31, 2014 | 0.64 | 0.87 |
| Dec 31, 2013 | 0.66 | 0.94 |
| Dec 31, 2012 | 0.64 | 1.05 |
| Dec 31, 2011 | 0.57 | 1.33 |
| Dec 31, 2010 | 0.53 | 1.13 |
| Dec 31, 2009 | 0.59 | 1.10 |
| Dec 31, 2008 | 0.63 | 1.76 |
| Dec 31, 2007 | 0.81 | 1.37 |
| Dec 31, 2006 | 0.78 | 1.43 |
| Dec 31, 2005 | 0.70 | 1.63 |
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).