Now Inc (DNOW)

Fixed asset turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 2,373,000 2,357,000 2,339,000 2,300,000 2,321,000 2,313,000 2,302,000 2,247,000 2,136,000 2,021,000 1,883,000 1,744,000 1,632,000 1,519,000 1,406,000 1,376,000 1,619,000 1,939,000 2,364,000 2,770,000
Property, plant and equipment US$ in thousands — — — — — 130,000 — 121,000 119,000 109,000 111,000 106,000 111,000 115,000 120,000 89,000 98,000 101,000 109,000 112,000
Fixed asset turnover — — — — — 17.79 — 18.57 17.95 18.54 16.96 16.45 14.70 13.21 11.72 15.46 16.52 19.20 21.69 24.73

December 31, 2024 calculation

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

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. Looking at the data provided for Now Inc, we observe a decline in the fixed asset turnover ratio from March 31, 2020, where it stood at 24.73, to December 31, 2022, where it decreased to 17.95. This decrease indicates that the company may not be utilizing its fixed assets as effectively in generating sales over this period.

From December 31, 2022, the fixed asset turnover ratio started to recover slightly, reaching 18.57 by March 31, 2023. However, there were intermittent gaps in the data for June 30, 2023, and December 31, 2023, where the ratio was not reported.

The ratio remained around the mid to high teens from September 2023 to December 31, 2024. This stability could suggest that the company has been able to maintain a consistent level of efficiency in utilizing its fixed assets to generate revenue during this period.

It is important for Now Inc to monitor and analyze its fixed asset turnover ratio continuously to ensure that its assets are being effectively utilized to support revenue generation. Any significant, sustained decline in this ratio could indicate potential inefficiencies in asset management that the company may need to address to enhance overall operational performance.