Now Inc (DNOW)
Working capital 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 current assets | US$ in thousands | 1,068,000 | 1,017,000 | 883,000 | 861,000 | 1,067,000 |
| Total current liabilities | US$ in thousands | 418,000 | 439,000 | 369,000 | 272,000 | 396,000 |
| Working capital turnover | 3.57 | 3.69 | 3.18 | 2.75 | 4.40 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,319,000K ÷ ($1,068,000K – $418,000K)
= 3.57
The working capital turnover ratio for NOW Inc has fluctuated over the past five years. In 2023, the ratio stands at 3.57, indicating that the company generates $3.57 in revenue for every dollar of working capital invested. This is slightly lower compared to the previous year, where the ratio was 3.70.
The trend over the years shows variability in how efficiently NOW Inc is utilizing its working capital to generate revenue. The company experienced a significant increase in the ratio in 2019, reaching 4.40, suggesting a more efficient use of working capital during that period. However, in 2020 and 2021, the ratio decreased to 2.75 and 3.18, respectively, indicating a decline in efficiency during those years.
Overall, the working capital turnover ratio for NOW Inc has shown fluctuations, with the most recent data indicating a slight decrease. It is essential for the company to closely monitor and manage its working capital to ensure optimal efficiency in generating revenue.
Peer comparison
Dec 31, 2023