Now Inc (DNOW)
Current ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Total current assets | US$ in thousands | 1,028,000 | 1,068,000 | 1,017,000 | 883,000 | 861,000 |
Total current liabilities | US$ in thousands | 442,000 | 418,000 | 439,000 | 369,000 | 272,000 |
Current ratio | 2.33 | 2.56 | 2.32 | 2.39 | 3.17 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,028,000K ÷ $442,000K
= 2.33
Based on the data provided, Now Inc's current ratio has shown a gradual decrease over the past few years. The current ratio was 3.17 as of December 31, 2020, and has since decreased to 2.39 as of December 31, 2021, 2.32 as of December 31, 2022, and 2.56 as of December 31, 2023, before dropping to 2.33 as of December 31, 2024.
Although the current ratio has fluctuated, it has generally remained above 2 in recent years, indicating that the company has a strong ability to meet its short-term obligations with its current assets. However, the downward trend in the current ratio may warrant further analysis to understand the reasons behind this decline and assess the company's liquidity position more comprehensively.
Peer comparison
Dec 31, 2024