Now Inc (DNOW)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.21 | 5.00 | 4.52 | 4.14 | 4.88 | 4.28 | 4.15 | 4.21 | 4.28 | 4.28 | 4.38 | 4.58 | 5.10 | 4.99 | 4.56 | 4.56 | 5.06 | 4.93 | 5.15 | 5.13 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.05 | 3.68 | 3.83 | 3.95 | 3.57 | 3.79 | 4.01 | 3.89 | 3.70 | 3.39 | 3.36 | 3.17 | 3.18 | 3.04 | 2.87 | 2.36 | 2.75 | 3.16 | 3.81 | 4.36 |
Now Inc's inventory turnover ratio has fluctuated over the past few years, ranging from 4.14 to 5.21. The average inventory turnover ratio for the period indicates that the company takes around 4 to 5 times to sell its inventory in a year. A decreasing trend in the inventory turnover ratio may suggest inefficiencies in managing inventory levels or potential overstocking issues.
The receivables turnover ratio for Now Inc is not available as the data shows "—", indicating that information regarding the efficiency of collecting receivables is not provided. This lack of data makes it challenging to assess the company's effectiveness in collecting outstanding payments from customers.
Similarly, the payables turnover ratio data is not available, denoted by "—", which makes it difficult to evaluate how well the company manages its trade credit with suppliers and pays off its liabilities.
The working capital turnover ratio for Now Inc has shown a fluctuating trend over the years, varying between 2.36 and 4.05. A higher working capital turnover ratio indicates that the company efficiently utilizes its working capital to generate sales. The increasing trend in the working capital turnover ratio from 2.36 to 4.05 suggests a positive development in how efficiently the company is using its working capital to drive revenue generation.
Overall, while the inventory turnover and working capital turnover ratios provide some insights into Now Inc's operational efficiency, the unavailability of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall liquidity and working capital management.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 70.09 | 73.00 | 80.77 | 88.16 | 74.80 | 85.29 | 87.93 | 86.61 | 85.32 | 85.23 | 83.26 | 79.73 | 71.57 | 73.12 | 80.11 | 80.07 | 72.06 | 74.07 | 70.93 | 71.20 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Now Inc's Days of Inventory on Hand (DOH) ratio has shown some fluctuations over the past few years, ranging from a low of 70.09 days to a high of 88.16 days. This ratio indicates the average number of days the company holds inventory before it is sold. The increasing trend in recent periods suggests that the company may be holding onto inventory for longer periods, tying up capital and potentially facing risks related to obsolescence.
On the other hand, data for Days of Sales Outstanding (DSO) and Number of Days of Payables are not available. DSO measures the average number of days it takes for a company to collect payment after a sale, while the Number of Days of Payables ratio shows the average number of days it takes for the company to pay its suppliers. These ratios are important for assessing the efficiency of receivables and payables management, but the lack of data makes it challenging to analyze Now Inc's performance in these areas.
In conclusion, based on the information provided, it is evident that Now Inc should focus on optimizing its inventory management practices to improve cash flow and operational efficiency. Gathering additional data on DSO and payables turnover would provide a more comprehensive analysis of the company's overall working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 1.46 | 1.49 | 1.50 | 1.44 | 1.52 | 1.68 | 1.62 | 1.69 | 1.62 | 1.58 | 1.57 | 1.50 | 1.48 | 1.38 | 1.31 | 1.34 | 1.61 | 1.87 | 2.21 | 2.32 |
Now Inc's Fixed Asset Turnover ratio has shown a declining trend from March 2020 to June 2021, indicating that the company's ability to generate revenue from its fixed assets was decreasing during this period. However, from September 2021 to September 2022, there was a gradual increase in the ratio, suggesting an improvement in utilizing fixed assets efficiently. From September 2022 to March 2024, the ratio remained relatively stable, indicating a consistent performance in generating sales from fixed assets.
In contrast, the Total Asset Turnover ratio fluctuated over the same period. It decreased from March 2020 to March 2022, implying a decrease in the company's ability to generate revenue from its total assets. However, from March 2022 to June 2024, there was a slight recovery in the ratio, suggesting an improvement in overall asset utilization.
Overall, the fluctuating Total Asset Turnover ratio indicates variations in the company's overall efficiency in generating sales from all its assets, while the Fixed Asset Turnover ratio shows how effectively the company is utilizing its fixed assets to generate revenue. Further analysis would be needed to understand the underlying reasons for these trends and to assess the company's long-term operational efficiency and asset management.