National Oilwell Varco’s order backlog
On June 30, 2016, National Oilwell Varco (NOV) had an order backlog of $3.9 billion compared to $10.2 billion in the previous year. A company’s backlog estimates sales value of unfilled, confirmed customer orders.
Order backlog and revenue
From 2Q15–2Q16, NOV’s total backlog decreased by 62%. In 2Q16, revenue as percentage of the backlog was 44%. In comparison, Schlumberger’s (SLB) revenue as percentage of its backlog was ~52% in 2Q16.
Next, we’ll discuss National Oilwell Varco’s indebtedness.