Now Inc (DNOW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,319,000 | 2,133,000 | 1,632,000 | 1,620,000 | 2,950,000 |
| Property, plant and equipment | US$ in thousands | 131,000 | 119,000 | 111,000 | 98,000 | 120,000 |
| Fixed asset turnover | 17.70 | 17.92 | 14.70 | 16.53 | 24.58 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,319,000K ÷ $131,000K
= 17.70
NOW Inc's fixed asset turnover has fluctuated over the past five years, with values ranging from 14.70 to 24.59. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. A higher ratio indicates that the company is generating more sales for each dollar invested in fixed assets.
In 2023, the fixed asset turnover ratio decreased slightly to 17.72 from 17.95 in 2022. This decrease may suggest a slight decline in the efficiency of utilizing fixed assets to generate sales. However, the ratio remains relatively high, indicating that NOW Inc is still effectively utilizing its fixed assets to generate revenue.
Comparing the current ratio to previous years, it is lower than the peak in 2019 (24.59) but has remained relatively stable in recent years. This stability suggests that NOW Inc has maintained a consistent level of efficiency in utilizing fixed assets to drive sales.
Overall, NOW Inc's fixed asset turnover ratio indicates that the company is efficiently generating sales relative to its investment in fixed assets, with a slight dip in 2023 but remaining at a relatively high level compared to historical data.
Peer comparison
Dec 31, 2023