Now Inc (DNOW)

Total 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
Total assets US$ in thousands 1,621,000 1,529,000 1,320,000 1,104,000 1,008,000
Total asset turnover 1.46 1.52 1.62 1.48 1.61

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,373,000K ÷ $1,621,000K
= 1.46

Now Inc's total asset turnover has shown some fluctuations over the past five years. From December 31, 2020, to December 31, 2024, the total asset turnover has ranged from 1.46 to 1.62. This ratio indicates the company's ability to generate sales from its total assets. A higher total asset turnover typically suggests that the company is efficiently utilizing its assets to generate revenue.

In Now Inc's case, the trend shows a slight decline in total asset turnover from 1.61 in 2020 to 1.46 in 2024 with some fluctuations in between. This may indicate a decrease in the company's efficiency in generating sales relative to its total assets over the years. It is important for the company to analyze the factors contributing to this trend and take necessary steps to improve its asset utilization efficiency in order to enhance overall financial performance.