Now Inc (DNOW)

Current ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Current ratio 2.56 2.32 2.39 3.17 2.69

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,068,000K ÷ $418,000K
= 2.56

The current ratio of NOW Inc has shown some fluctuations over the past five years. In particular, the current ratio has decreased from 3.17 in 2020 to 2.56 in 2023. This indicates that in 2023, NOW Inc may have slightly less liquid assets to cover its current liabilities compared to 2020. However, it is important to note that a current ratio of 2.56 still indicates that NOW Inc has more than enough current assets to meet its short-term obligations. The current ratio of NOW Inc has generally been above 2.0 over the past five years, suggesting a healthy liquidity position. Overall, although there has been some variability in the current ratio, NOW Inc's current ratio indicates a relatively strong ability to cover its short-term obligations with its current assets.