Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Cash Flow Statement
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
National Oilwell Varco Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
The quarterly financial data reveals notable trends in turnover ratios over the analyzed period. These ratios measure the efficiency with which the company utilizes its assets and equity to generate revenue.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio initially exhibited a gradual increasing trend, moving from 6.25 at the beginning of 2012 to a peak around 6.83 in mid-2013. This indicates improving efficiency in the use of fixed assets during this timeframe. However, starting in 2014, the ratio begins to decline steadily, culminating in a significant drop to 3.03 by mid-2016. This decline suggests that the company was generating less revenue per unit of fixed asset over time, which may indicate underutilized fixed assets or increased asset base without comparable revenue growth.
- Total Asset Turnover
- The total asset turnover ratio shows relative stability through 2012 to 2014, fluctuating around 0.6 to 0.66, indicating consistent utilization of total assets to generate sales. From early 2015 onwards, the ratio demonstrates a gradual decline, reaching 0.42 by mid-2016. This downward trend points to a decreasing efficiency in the use of all assets to produce revenue, which might be associated with either asset accumulation not matched by proportional sales increase or weakening sales relative to asset portfolio size.
- Equity Turnover
- Equity turnover increased from 0.86 in early 2012 to a high of approximately 1.12 in early 2015, reflecting improved revenue generation relative to shareholders' equity during this period. Following this peak, the ratio trends downward considerably, falling to 0.62 by mid-2016. This decline indicates a less efficient use of equity to produce sales, potentially signaling challenges in leveraging shareholder funds effectively in the later period.
In summary, all three turnover ratios show an upward or stable trajectory until roughly 2014–early 2015, followed by a consistent decline through mid-2016. This pattern suggests that while asset and equity utilization was relatively efficient initially, operational or market changes occurred that negatively affected the company's effectiveness in generating sales from its asset and equity bases in the later periods.
Net Fixed Asset Turnover
National Oilwell Varco Inc., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| SLB N.V. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
Net fixed asset turnover
= (RevenueQ2 2016
+ RevenueQ1 2016
+ RevenueQ4 2015
+ RevenueQ3 2015)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The presented financial data reveals several notable trends in the company's quarterly performance and asset utilization over the observed periods.
- Revenue
- The revenue experienced an upward trajectory from early 2012 through the end of 2013, peaking in the fourth quarter of 2013 at 6,172 million USD. Following this peak, there was a consistent and marked decline in revenues beginning in 2014, continuing sharply throughout 2015 and into mid-2016. By the second quarter of 2016, revenue had diminished substantially to 1,724 million USD, representing a significant reduction from previous highs.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment showed a steady increase from the first quarter of 2012 to the end of 2013, rising from 2,531 million USD to 3,408 million USD. In early 2014, the asset base largely stabilized, maintaining values slightly above 3,300 million USD with minor fluctuations. Toward mid-2015 and into 2016, the asset levels experienced slight decreases and some volatility but overall remained near the 3,200 to 3,300 million USD range, without a clear downward or upward trend.
- Net Fixed Asset Turnover Ratio
- This ratio, indicative of the efficiency with which fixed assets generate revenue, displayed a decreasing trend over the observed timeline. Initially, the turnover ratio increased slightly from 6.25 in the first quarter of 2012 to a peak of around 6.83 in mid-2013. Subsequently, it declined gradually from late 2013 onwards. Notably, the decline accelerated significantly in 2015 and continued into 2016, dropping to 3.03 by the second quarter of 2016. This suggests a reduced effectiveness in utilizing fixed assets to produce revenue during this period.
Overall, the company demonstrated moderate growth in revenue and expansion of fixed assets through 2013, followed by a pronounced revenue decline while asset levels remained relatively stable. The diminishing net fixed asset turnover ratio further indicates weakening operational efficiency, likely reflecting challenges in maintaining revenue levels proportional to the asset base during the latter quarters.
Total Asset Turnover
National Oilwell Varco Inc., total asset turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| SLB N.V. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
Total asset turnover
= (RevenueQ2 2016
+ RevenueQ1 2016
+ RevenueQ4 2015
+ RevenueQ3 2015)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue demonstrated a growth trajectory from March 2012 through December 2013, peaking at 6,172 million US dollars. Following this peak, a consistent decline is observed starting in March 2014 through June 2016, with revenue falling sharply to 1,724 million US dollars, indicating a significant downturn in the company's sales or demand environment during this period.
- Total Assets Evolution
- Total assets increased steadily from March 2012 until December 2013, reaching a high of 34,812 million US dollars. Afterward, the asset base experienced a gradual decrease from March 2014 through June 2016, declining to 23,784 million US dollars. This contraction in total assets may reflect asset sales, depreciation outpacing acquisitions, or strategic downsizing.
- Total Asset Turnover Ratio
- The total asset turnover ratio remained relatively stable around the 0.6-0.65 range from March 2012 through December 2014, indicating consistent efficiency in using assets to generate revenue during this period. However, from March 2015 onwards, there is a noticeable decline in asset turnover, dropping from 0.66 in March 2015 to 0.42 in June 2016. This decline suggests a reduced effectiveness in asset utilization, likely correlated with the declining revenue and shrinking asset base.
- Overall Insights
- The data reflects a period of growth followed by a marked contraction in both revenue and assets. The initial growth phase indicates expansion and asset accumulation, along with stable operational efficiency. The subsequent decline phase points to challenges in maintaining revenue levels and asset productivity, possibly indicative of market pressures or internal operational issues during the later periods.
Equity Turnover
National Oilwell Varco Inc., equity turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Total Company stockholders’ equity | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| SLB N.V. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
Equity turnover
= (RevenueQ2 2016
+ RevenueQ1 2016
+ RevenueQ4 2015
+ RevenueQ3 2015)
÷ Total Company stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The revenue of the company exhibited an overall fluctuating trend over the observed periods. Initially, from March 2012 to December 2013, there was a steady increase in revenue, peaking at 6,172 million USD by the end of 2013. However, starting in 2014, the revenue began a downward trajectory with some minor recoveries, but generally declining throughout 2015 and continuing significantly into 2016, reaching 1,724 million USD by June 2016. This indicates a substantial decrease in the company's sales or operational income in the most recent periods analyzed.
Total Company stockholders’ equity showed consistent growth from March 2012 through December 2013, increasing from 18,416 million USD to 22,230 million USD. However, from March 2014 onwards, the equity began to decline gradually. By June 2016, it had decreased to 16,118 million USD, signaling a reduction in the net asset value available to shareholders. This decline in equity corresponds with the observed drop in revenue, possibly reflecting accumulated losses, dividend distributions, or other equity-reducing factors.
The equity turnover ratio, which measures how effectively the company is using its equity to generate revenue, followed a pattern similar to the revenue trend. It increased from 0.86 in March 2012 to a peak of around 1.05 in mid to late 2013, indicating improved efficiency in revenue generation relative to equity. Starting in 2014, the ratio fluctuated slightly but showed a marked decline from 2015 onwards, falling to 0.62 by June 2016. This decreasing trend suggests diminishing efficiency in utilizing equity to generate sales, aligning with the decline in revenue and equity observed during the same periods.
- Revenue Trend
- Steady growth from early 2012 to late 2013, followed by a consistent and significant decline through 2016.
- Equity Trend
- Growth until the end of 2013, then a gradual and continued decrease through mid-2016.
- Equity Turnover Ratio
- Improved efficiency up to late 2013, then a steady decline, reflecting less effective use of equity in generating revenue.
Overall, the company demonstrated solid financial performance up to the end of 2013, followed by a period of weakening operational results and declining financial strength. The reduction in revenue and equity, along with the falling equity turnover ratio, indicate challenges in maintaining growth and operational efficiency in the more recent quarters of the data set.