Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
National Oilwell Varco Inc., liquidity ratios
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Current ratio | 2.78 | 2.19 | 2.46 | 2.78 | 2.24 | |
| Quick ratio | 1.18 | 1.08 | 1.25 | 1.35 | 1.26 | |
| Cash ratio | 0.49 | 0.48 | 0.51 | 0.59 | 0.65 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | National Oilwell Varco Inc. current ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | National Oilwell Varco Inc. quick ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 not reaching 2013 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | National Oilwell Varco Inc. cash ratio deteriorated from 2013 to 2014 but then slightly improved from 2014 to 2015. |
Current Ratio
National Oilwell Varco Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 11,801) | 16,162) | 16,423) | 15,678) | 12,110) | |
| Current liabilities | 4,249) | 7,374) | 6,678) | 5,649) | 5,416) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 2.78 | 2.19 | 2.46 | 2.78 | 2.24 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Schlumberger Ltd. | — | — | — | — | — | |
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).
1 2015 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,801 ÷ 4,249 = 2.78
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | National Oilwell Varco Inc. current ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level. |
Quick Ratio
National Oilwell Varco Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 2,080) | 3,536) | 3,436) | 3,319) | 3,535) | |
| Receivables, net | 2,926) | 4,416) | 4,896) | 4,320) | 3,291) | |
| Total quick assets | 5,006) | 7,952) | 8,332) | 7,639) | 6,826) | |
| Current liabilities | 4,249) | 7,374) | 6,678) | 5,649) | 5,416) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.18 | 1.08 | 1.25 | 1.35 | 1.26 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Schlumberger Ltd. | — | — | — | — | — | |
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).
1 2015 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,006 ÷ 4,249 = 1.18
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | National Oilwell Varco Inc. quick ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 not reaching 2013 level. |
Cash Ratio
National Oilwell Varco Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 2,080) | 3,536) | 3,436) | 3,319) | 3,535) | |
| Total cash assets | 2,080) | 3,536) | 3,436) | 3,319) | 3,535) | |
| Current liabilities | 4,249) | 7,374) | 6,678) | 5,649) | 5,416) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.49 | 0.48 | 0.51 | 0.59 | 0.65 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Schlumberger Ltd. | — | — | — | — | — | |
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).
1 2015 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,080 ÷ 4,249 = 0.49
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | National Oilwell Varco Inc. cash ratio deteriorated from 2013 to 2014 but then slightly improved from 2014 to 2015. |