Now Inc (DNOW)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 256,000 | 261,000 | 197,000 | 188,000 | 299,000 | 194,000 | 203,000 | 168,000 | 212,000 | 267,000 | 232,000 | 293,000 | 313,000 | 312,000 | 293,000 | 374,000 | 387,000 | 325,000 | 269,000 | 202,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.58 | 0.63 | 0.48 | 0.41 | 0.72 | 0.46 | 0.41 | 0.38 | 0.48 | 0.58 | 0.57 | 0.74 | 0.85 | 0.83 | 0.86 | 1.26 | 1.42 | 1.23 | 0.97 | 0.52 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($256,000K
+ $—K)
÷ $442,000K
= 0.58
The cash ratio of Now Inc has shown fluctuating trends over the years based on the provided data. The cash ratio represents the company's ability to cover its short-term liabilities using its cash and cash equivalents.
From March 31, 2020, to December 31, 2022, the cash ratio ranged from 0.38 to 1.42, indicating some variability in the company's liquidity position. This suggests that Now Inc may have had periods of stronger or weaker ability to meet its short-term obligations with its available cash.
In the more recent periods, from March 31, 2023, to December 31, 2024, the cash ratio remained relatively stable, with values ranging between 0.38 and 0.63. This suggests that the company's liquidity position may have stabilized during this time frame.
Overall, it is important for Now Inc to maintain a healthy cash ratio to ensure it can cover its short-term liabilities efficiently. Any significant fluctuations in the cash ratio should be further analyzed to understand the underlying reasons and implications for the company's financial health.
Peer comparison
Dec 31, 2024