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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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
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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), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio begins to be reported starting from March 31, 2012, showing a progressive increase from 6.00 to a peak of 6.83 by September 30, 2013. Subsequently, the ratio maintains a relatively stable range around the mid-6s through December 31, 2014, before beginning a noticeable decline from March 31, 2015 onward. The downward trend accelerates toward June 30, 2016, when the ratio decreases to 3.03, representing a substantial reduction in asset utilization efficiency over this recent period.
- Total Asset Turnover
- This ratio exhibits a generally positive trend from March 31, 2012 (0.57), climbing steadily to approximately 0.66 by December 31, 2013. The ratio holds relatively steady around 0.63 to 0.66 through March 31, 2015. After this period, there is a clear and continuous decline, reaching 0.42 by June 30, 2016. This decline indicates a reduction in the company’s efficiency in generating sales from its total assets during the latter periods.
- Equity Turnover
- The equity turnover ratio shows an initial upward trajectory from 0.83 at March 31, 2012, peaking at 1.12 on December 31, 2014. This upward trend suggests increased effectiveness in using equity to generate revenue in this timeline. However, following this peak, there is a consistent decline through June 30, 2016, where the ratio reaches 0.62. This decline indicates diminishing efficiency in equity usage in the most recent periods analyzed.
- Overall Observations
- Across all three turnover metrics, there is a common pattern of growth or stability through the earlier years, reaching peaks between late 2013 and 2014. Following these peaks, there is a notable downward trend in all ratios beginning around early 2015 and continuing through mid-2016. The decreases suggest challenges in asset and equity utilization that may reflect operational inefficiencies, changes in market conditions, or shifts in company strategy during this timeframe.
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 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |||||||||||||||||||||||||||||
| Schlumberger Ltd. | |||||||||||||||||||||||||||||
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), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
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 financial data reveals several notable trends regarding revenue, property plant and equipment net values, and fixed asset turnover ratio over the observed periods.
- Revenue
- Revenue shows an overall fluctuation with a significant peak between late 2011 and early 2014, reaching the highest values around the fourth quarter of 2013 at $6,172 million. Initially, revenue increased steadily from approximately $3,146 million in the first quarter of 2011 to over $5,000 million by early 2013. However, post the first quarter of 2014, a clear downward trend is observed. Revenue declined sharply from $5,709 million in the fourth quarter of 2014 to $1,724 million by the second quarter of 2016, indicating a contraction in business activities or market conditions deteriorating during this period.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment demonstrates a gradual and consistent increase over the entire timeframe. Starting from $1,861 million in the first quarter of 2011, it rose steadily, peaking at about $3,440 million near mid-2014. Following this peak, the asset value displayed minor fluctuations but remained relatively stable around the $3,200–3,300 million range through to mid-2016. This pattern indicates ongoing capital investment in fixed assets initially, with stabilization in asset base afterward.
- Net Fixed Asset Turnover Ratio
- The fixed asset turnover ratio, representing efficiency in utilizing fixed assets to generate revenue, shows a consistent decline over recorded periods. The ratio was approximately 6.0 in the middle of 2011 and increased slightly, achieving peaks near 6.8 between 2012 and early 2014. After the first quarter of 2014, this ratio started to decline steadily, dropping from around 6.5 to as low as 3.03 by the second quarter of 2016. The decline indicates decreasing revenue generation efficiency relative to the fixed asset base, possibly due to the marked reduction in revenue without a corresponding decrease in asset values.
In summary, the data points to a period of growth and investment culminating around 2013–2014, followed by a substantial decrease in revenue alongside a stable level of fixed assets, leading to a declining efficiency in asset utilization in generating revenue.
Total Asset Turnover
National Oilwell Varco Inc., total asset turnover calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Schlumberger Ltd. | |||||||||||||||||||||||||||||
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), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Total asset turnover
= (RevenueQ2 2016
+ RevenueQ1 2016
+ RevenueQ4 2015
+ RevenueQ3 2015)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in revenue, total assets, and total asset turnover over the examined periods. Revenue exhibited an overall upward momentum from early 2011 through 2014, peaking in the fourth quarter of 2013 at 6,172 million US dollars. The growth phase is characterized by steady quarterly increases, beginning at 3,146 million in the first quarter of 2011 and experiencing consistent rises until the peak is reached. However, following this apex, a discernible decline in revenue occurs starting from early 2015, accelerating throughout 2015 and continuing into mid-2016, where it falls to 1,724 million US dollars by June 2016.
Total assets display a generally increasing trend from 2011 through the end of 2014, rising from 23,156 million to a high of approximately 35,480 million US dollars. After this growth period, total assets reach a plateau and then commence a gradual decrease starting in 2015, declining to 23,784 million US dollars by mid-2016. This pattern aligns temporally with the revenue downturn and may reflect asset management responses to changing operational conditions.
Total asset turnover, available from the third quarter of 2011 onward, indicates the efficiency with which assets generate revenue. Initially, this ratio moved upward, from 0.57 in the third quarter of 2011 to a peak of 0.66 in the fourth quarter of 2014. This suggests progressive improvement in asset utilization up to that point. However, from 2015 onward, the ratio declines sharply, reaching 0.42 by the second quarter of 2016. This deterioration signifies a reduced ability to use assets effectively to generate sales during the downturn period.
- Revenue
- Strong growth trend from 2011 to late 2013, peaking in Q4 2013, followed by a sustained decline through mid-2016.
- Total Assets
- Incremental increases through 2014, stabilizing and then decreasing starting in 2015, mirroring the downturn in revenue.
- Total Asset Turnover
- Improvement in asset efficiency observed up to 2014, then a notable reduction in asset productivity concomitant with revenue and asset declines post-2014.
Overall, the data reflects a period of expansion in both revenue and asset base until late 2014, followed by contraction and diminished operational efficiency through mid-2016. These patterns could be indicative of changes in market conditions, operational challenges, or strategic shifts affecting financial performance and asset utilization.
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 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||
| Total Company stockholders’ equity | |||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Schlumberger Ltd. | |||||||||||||||||||||||||||||
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), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
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.
- Revenue Trends
- Revenue showed a generally increasing trend from March 2011 through December 2013, rising from $3,146 million to $6,172 million. This period was characterized by steady growth, with revenue peaking in the fourth quarter of 2013. However, beginning in 2014, revenue experienced fluctuations and subsequent decline. After reaching a high of $5,709 million in December 2014, there was a notable downturn starting in 2015, with revenue falling sharply to $1,724 million by June 2016, indicating a significant decrease in sales or operational scale towards the latter part of the observed period.
- Total Company Stockholders' Equity Trends
- Stockholders' equity steadily increased from $16,289 million in March 2011 to a peak of $22,697 million in March 2014. After this peak, equity values began to decline gradually, dropping to $16,118 million by June 2016. While equity remained relatively stable during the 2011-2014 growth phase, the post-2014 period shows a clear downtrend, aligning with the decreases seen in revenue, which may reflect impacts of reduced profitability or other financial adjustments during this time.
- Equity Turnover Ratio Trends
- The equity turnover ratio, which measures efficiency in generating revenue from equity, was unavailable for the initial periods but started at 0.83 in September 2011 and showed a gradual increase to a peak of 1.12 in March 2015. This peak suggests improved efficiency in utilizing equity to generate revenue during this time. However, following the peak, the ratio declined sharply to 0.62 by June 2016. This decrease corresponds with the steep revenue decline and suggests less efficient use of equity to generate sales in the later quarters.
- Summary Insights
- From 2011 to early 2014, the financial data indicate a period of growth and improving operational efficiency, reflected in rising revenue, increasing stockholders' equity, and improving equity turnover. Beginning in 2014, this positive trend reversed, with both revenue and equity experiencing decline, and equity turnover dropping significantly. The sharp fall in revenue and efficiency post-2014 points to challenging business conditions, reduced operational performance, or strategic shifts affecting the company's financial health over the last observed periods.