Now Inc (DNOW)
Total 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 |
| Total assets | US$ in thousands | 1,529,000 | 1,376,000 | 1,420,000 | 1,329,000 | 1,320,000 | 1,282,000 | 1,202,000 | 1,162,000 | 1,104,000 | 1,104,000 | 1,070,000 | 1,026,000 | 1,008,000 | 1,039,000 | 1,069,000 | 1,196,000 | 1,591,000 | 1,790,000 | 1,849,000 | 1,896,000 |
| Total asset turnover | 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 | 1.85 | 1.72 | 1.70 | 1.66 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,319,000K ÷ $1,529,000K
= 1.52
NOW Inc's total asset turnover ratio has exhibited fluctuation over the past eight quarters. The ratio represents the efficiency with which the company is utilizing its total assets to generate revenue. A higher total asset turnover ratio indicates that the company is effectively generating more revenue per dollar of assets.
In the most recent quarter, Q4 2023, NOW Inc's total asset turnover was recorded at 1.52, representing a slight decline compared to the previous quarter. The company's peak performance in terms of total asset turnover was observed in Q3 2023 at 1.68, showing efficient asset utilization.
Overall, NOW Inc has maintained relatively stable total asset turnover ratios around the range of 1.50 to 1.69 over the past two years. This consistency suggests a consistent level of efficiency in utilizing its assets to generate revenue. However, management should continue to monitor and improve this ratio to ensure optimal utilization of assets for revenue generation.
Peer comparison
Dec 31, 2023