Now Inc (DNOW)

Current 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
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
Current ratio 2.33 2.54 2.48 2.26 2.56 2.44 2.15 2.29 2.32 2.30 2.38 2.39 2.39 2.33 2.44 2.96 3.17 3.33 3.23 2.65

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,028,000K ÷ $442,000K
= 2.33

The current ratio of Now Inc, which measures the company's ability to cover its short-term liabilities with its short-term assets, has fluctuated over the provided period. It increased from 2.65 in March 31, 2020, to 3.33 in September 30, 2020, indicating improved liquidity. However, it slightly decreased to 2.39 in December 31, 2021, and further to 2.15 in June 30, 2023, which may raise concerns about the company's short-term liquidity position.

The current ratio recovered to 2.56 by December 31, 2023, but then fell to 2.26 by March 31, 2024. Subsequently, it increased to 2.54 by September 30, 2024, before dropping again to 2.33 by December 31, 2024. This fluctuation in the current ratio could indicate potential challenges in managing current assets and liabilities efficiently or fluctuations in the company's short-term financial health.

Overall, while the current ratio remained relatively above 2 throughout the period, indicating that Now Inc generally had sufficient current assets to cover its current liabilities, the downwards trend from 2022 to 2024 suggests a need for close monitoring of the company's liquidity management strategies and practices.