Now Inc (DNOW)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,319,000 | 2,133,000 | 1,632,000 | 1,620,000 | 2,950,000 |
| Total assets | US$ in thousands | 1,529,000 | 1,320,000 | 1,104,000 | 1,008,000 | 1,591,000 |
| Total asset turnover | 1.52 | 1.62 | 1.48 | 1.61 | 1.85 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,319,000K ÷ $1,529,000K
= 1.52
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. A higher turnover ratio indicates that a company is able to generate more sales using a lower amount of assets, which is generally favorable.
Analyzing the trend of NOW Inc's total asset turnover over the past five years, we observe fluctuations in the ratio. The ratio decreased from 1.85 in 2019 to 1.48 in 2021 before slightly increasing to 1.52 in 2023. This could suggest a decrease in the company's ability to generate sales from its assets in 2021, but a slight improvement in 2023.
It is important to note that total asset turnover should be analyzed in conjunction with other metrics and factors affecting the company's operations to gain a holistic understanding of its financial performance and efficiency in asset utilization.
Peer comparison
Dec 31, 2023