Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
National Oilwell Varco Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | National Oilwell Varco Inc. debt to equity ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | National Oilwell Varco Inc. debt to capital ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | National Oilwell Varco Inc. debt to assets ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | National Oilwell Varco Inc. financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | National Oilwell Varco Inc. interest coverage ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Debt to Equity
National Oilwell Varco Inc., debt to equity 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 portion of long-term debt and short-term borrowings | 2) | 152) | 1) | 1) | 351) | |
| Long-term debt, excluding current portion | 3,928) | 3,014) | 3,149) | 3,148) | 159) | |
| Total debt | 3,930) | 3,166) | 3,150) | 3,149) | 510) | |
| Total Company stockholders’ equity | 16,383) | 20,692) | 22,230) | 20,239) | 17,619) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.24 | 0.15 | 0.14 | 0.16 | 0.03 | |
| Benchmarks | ||||||
| Debt to Equity, 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
Debt to equity = Total debt ÷ Total Company stockholders’ equity
= 3,930 ÷ 16,383 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | National Oilwell Varco Inc. debt to equity ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Debt to Capital
National Oilwell Varco Inc., debt to capital 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 portion of long-term debt and short-term borrowings | 2) | 152) | 1) | 1) | 351) | |
| Long-term debt, excluding current portion | 3,928) | 3,014) | 3,149) | 3,148) | 159) | |
| Total debt | 3,930) | 3,166) | 3,150) | 3,149) | 510) | |
| Total Company stockholders’ equity | 16,383) | 20,692) | 22,230) | 20,239) | 17,619) | |
| Total capital | 20,313) | 23,858) | 25,380) | 23,388) | 18,129) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.19 | 0.13 | 0.12 | 0.13 | 0.03 | |
| Benchmarks | ||||||
| Debt to Capital, 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
Debt to capital = Total debt ÷ Total capital
= 3,930 ÷ 20,313 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | National Oilwell Varco Inc. debt to capital ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Debt to Assets
National Oilwell Varco Inc., debt to assets 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 portion of long-term debt and short-term borrowings | 2) | 152) | 1) | 1) | 351) | |
| Long-term debt, excluding current portion | 3,928) | 3,014) | 3,149) | 3,148) | 159) | |
| Total debt | 3,930) | 3,166) | 3,150) | 3,149) | 510) | |
| Total assets | 26,725) | 33,562) | 34,812) | 31,484) | 25,515) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.15 | 0.09 | 0.09 | 0.10 | 0.02 | |
| Benchmarks | ||||||
| Debt to Assets, 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
Debt to assets = Total debt ÷ Total assets
= 3,930 ÷ 26,725 = 0.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | National Oilwell Varco Inc. debt to assets ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Financial Leverage
National Oilwell Varco Inc., financial leverage 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) | ||||||
| Total assets | 26,725) | 33,562) | 34,812) | 31,484) | 25,515) | |
| Total Company stockholders’ equity | 16,383) | 20,692) | 22,230) | 20,239) | 17,619) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.63 | 1.62 | 1.57 | 1.56 | 1.45 | |
| Benchmarks | ||||||
| Financial Leverage, 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
Financial leverage = Total assets ÷ Total Company stockholders’ equity
= 26,725 ÷ 16,383 = 1.63
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | National Oilwell Varco Inc. financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015. |
Interest Coverage
National Oilwell Varco Inc., interest coverage 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) | ||||||
| Net income (loss) attributable to Company | (769) | 2,502) | 2,327) | 2,491) | 1,994) | |
| Add: Net income attributable to noncontrolling interest | 2) | 5) | 1) | (8) | (9) | |
| Less: Income from discontinued operations | —) | 52) | —) | —) | —) | |
| Add: Income tax expense | 178) | 1,039) | 1,018) | 1,022) | 937) | |
| Add: Interest and financial costs | 103) | 105) | 111) | 49) | 40) | |
| Earnings before interest and tax (EBIT) | (486) | 3,599) | 3,457) | 3,554) | 2,962) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -4.72 | 34.28 | 31.14 | 72.53 | 74.05 | |
| Benchmarks | ||||||
| Interest Coverage, 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
Interest coverage = EBIT ÷ Interest expense
= -486 ÷ 103 = -4.72
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | National Oilwell Varco Inc. interest coverage ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |