Now Inc (DNOW)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,373,000 | 2,357,000 | 2,339,000 | 2,300,000 | 2,321,000 | 2,313,000 | 2,302,000 | 2,247,000 | 2,136,000 | 2,021,000 | 1,883,000 | 1,744,000 | 1,632,000 | 1,519,000 | 1,406,000 | 1,376,000 | 1,619,000 | 1,939,000 | 2,364,000 | 2,770,000 |
| Total current assets | US$ in thousands | 1,028,000 | 1,058,000 | 1,023,000 | 1,045,000 | 1,068,000 | 1,033,000 | 1,075,000 | 1,025,000 | 1,017,000 | 1,054,000 | 969,000 | 946,000 | 883,000 | 874,000 | 831,000 | 882,000 | 861,000 | 878,000 | 898,000 | 1,020,000 |
| Total current liabilities | US$ in thousands | 442,000 | 417,000 | 412,000 | 462,000 | 418,000 | 423,000 | 501,000 | 447,000 | 439,000 | 458,000 | 408,000 | 395,000 | 369,000 | 375,000 | 341,000 | 298,000 | 272,000 | 264,000 | 278,000 | 385,000 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,373,000K ÷ ($1,028,000K – $442,000K)
= 4.05
Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is efficiently managing its working capital.
Now Inc's working capital turnover has fluctuated over the years, starting at 4.36 on March 31, 2020, and reached a peak of 4.05 on December 31, 2024. The ratio dipped to a low of 2.36 on March 31, 2021, before showing an upward trend.
Overall, Now Inc's working capital turnover ratio has shown variability but has generally improved over the years, with the company becoming more effective in generating sales revenue from its working capital. This indicates that Now Inc has been efficiently managing its working capital to support its operations and drive revenue growth.
Peer comparison
Dec 31, 2024