Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
National Oilwell Varco Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | National Oilwell Varco Inc. gross profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | National Oilwell Varco Inc. operating profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | National Oilwell Varco Inc. net profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | National Oilwell Varco Inc. ROE improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
| ROA | A profitability ratio calculated as net income divided by total assets. | National Oilwell Varco Inc. ROA improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Gross Profit Margin
National Oilwell Varco Inc., gross profit margin 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) | ||||||
| Gross profit | 3,063) | 5,809) | 5,489) | 5,339) | 4,497) | |
| Revenue | 14,757) | 21,440) | 22,869) | 20,041) | 14,658) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 20.76% | 27.09% | 24.00% | 26.64% | 30.68% | |
| Benchmarks | ||||||
| Gross Profit Margin, 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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 3,063 ÷ 14,757 = 20.76%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | National Oilwell Varco Inc. gross profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Operating Profit Margin
National Oilwell Varco Inc., operating profit margin 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) | ||||||
| Operating profit (loss) | (390) | 3,613) | 3,423) | 3,557) | 2,937) | |
| Revenue | 14,757) | 21,440) | 22,869) | 20,041) | 14,658) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -2.64% | 16.85% | 14.97% | 17.75% | 20.04% | |
| Benchmarks | ||||||
| Operating Profit Margin, 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
Operating profit margin = 100 × Operating profit (loss) ÷ Revenue
= 100 × -390 ÷ 14,757 = -2.64%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | National Oilwell Varco Inc. operating profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Net Profit Margin
National Oilwell Varco Inc., net profit margin 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) | |
| Revenue | 14,757) | 21,440) | 22,869) | 20,041) | 14,658) | |
| Profitability Ratio | ||||||
| Net profit margin1 | -5.21% | 11.67% | 10.18% | 12.43% | 13.60% | |
| Benchmarks | ||||||
| Net Profit Margin, 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
Net profit margin = 100 × Net income (loss) attributable to Company ÷ Revenue
= 100 × -769 ÷ 14,757 = -5.21%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | National Oilwell Varco Inc. net profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Return on Equity (ROE)
National Oilwell Varco Inc., ROE 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) | |
| Total Company stockholders’ equity | 16,383) | 20,692) | 22,230) | 20,239) | 17,619) | |
| Profitability Ratio | ||||||
| ROE1 | -4.69% | 12.09% | 10.47% | 12.31% | 11.32% | |
| Benchmarks | ||||||
| ROE, 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
ROE = 100 × Net income (loss) attributable to Company ÷ Total Company stockholders’ equity
= 100 × -769 ÷ 16,383 = -4.69%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | National Oilwell Varco Inc. ROE improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |
Return on Assets (ROA)
National Oilwell Varco Inc., ROA 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) | |
| Total assets | 26,725) | 33,562) | 34,812) | 31,484) | 25,515) | |
| Profitability Ratio | ||||||
| ROA1 | -2.88% | 7.45% | 6.68% | 7.91% | 7.82% | |
| Benchmarks | ||||||
| ROA, 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
ROA = 100 × Net income (loss) attributable to Company ÷ Total assets
= 100 × -769 ÷ 26,725 = -2.88%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | National Oilwell Varco Inc. ROA improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015. |