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.
Peer comparison
Dec 31, 2024