Now Inc (DNOW)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,319,000 | 2,310,000 | 2,299,000 | 2,244,000 | 2,133,000 | 2,021,000 | 1,883,000 | 1,744,000 | 1,632,000 | 1,520,000 | 1,407,000 | 1,377,000 | 1,620,000 | 1,939,000 | 2,364,000 | 2,770,000 | 2,951,000 | 3,076,000 | 3,147,000 | 3,148,000 |
| Property, plant and equipment | US$ in thousands | 131,000 | 130,000 | 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 | 120,000 | 117,000 | 115,000 | 110,000 |
| Fixed asset turnover | 17.70 | 17.77 | 17.68 | 18.55 | 17.92 | 18.54 | 16.96 | 16.45 | 14.70 | 13.22 | 11.72 | 15.47 | 16.53 | 19.20 | 21.69 | 24.73 | 24.59 | 26.29 | 27.37 | 28.62 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,319,000K ÷ $131,000K
= 17.70
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.
Based on the provided data, NOW Inc's fixed asset turnover has shown some fluctuations over the past eight quarters, ranging from a low of 16.45 in Q1 2022 to a high of 18.57 in Q1 2023. Generally, the company has maintained a relatively high fixed asset turnover ratio, with an average of approximately 17.69 over the period analyzed.
The consistently high fixed asset turnover suggests that NOW Inc is efficiently utilizing its fixed assets to generate sales. This efficiency can be attributed to effective asset management practices, operational efficiency, and strong sales performance. However, the slight fluctuations in the ratio indicate potential variations in the company's asset utilization efficiency over time.
Overall, the trend in NOW Inc's fixed asset turnover ratio indicates a strong ability to generate revenue from its fixed assets, reflecting positively on the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023