Now Inc (DNOW)

Fixed asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 2,373,000 2,321,000 2,136,000 1,632,000 1,619,000
Property, plant and equipment US$ in thousands — — 119,000 111,000 98,000
Fixed asset turnover — — 17.95 14.70 16.52

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,373,000K ÷ $—K
= —

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. Looking at the historical trend for Now Inc, we see that the fixed asset turnover ratio has fluctuated over the years.

In December 31, 2020, the fixed asset turnover ratio was 16.52, indicating that the company generated $16.52 in sales for every dollar invested in fixed assets during that period. This was a strong performance, indicating efficient utilization of the company's fixed assets.

However, in December 31, 2021, the fixed asset turnover ratio decreased to 14.70, suggesting a decline in the company's ability to generate sales from its fixed assets. This could indicate potential inefficiencies in asset utilization or a decrease in sales relative to the level of fixed assets.

By December 31, 2022, the fixed asset turnover ratio improved to 17.95, which signals a return to a more efficient use of fixed assets to generate sales revenue. This improvement is a positive sign for the company's operational efficiency.

Unfortunately, there is missing data for December 31, 2023 and December 31, 2024, which limits our ability to analyze the recent trend in fixed asset turnover for Now Inc during those periods.

In conclusion, the analysis of Now Inc's fixed asset turnover ratio highlights fluctuations in efficiency in generating sales revenue from fixed assets over the years. Continued monitoring of this ratio, along with further financial data, would be beneficial to assess the company's operational performance and asset utilization in the future.