Now Inc (DNOW)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($256,000K
+ $—K
+ $—K)
÷ $442,000K
= 0.58
The quick ratio of Now Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The quick ratio, which measures the company's ability to meet its short-term liabilities with its most liquid assets, started at a low of 0.52 on March 31, 2020, indicating a potential liquidity issue. However, the ratio improved consistently, reaching a peak of 1.42 on December 31, 2020, suggesting the company had significantly enhanced its liquidity position.
Subsequently, the quick ratio fluctuated but generally trended downwards, with occasional spikes or dips. Notably, there were significant declines in the quick ratio in the second and third quarters of 2021, dropping to 0.86 and 0.83, respectively. This could indicate potential challenges in meeting short-term obligations with quick assets during those periods.
Throughout the remaining quarters of 2022 and 2023, the quick ratio continued to fluctuate within a lower range, indicating fluctuations in the company's ability to cover its short-term liabilities with its most liquid assets. However, by the end of December 31, 2023, the quick ratio improved to 0.72, suggesting a slightly healthier liquidity position.
In the first half of 2024, the quick ratio showed some improvement before dropping slightly to 0.41 on June 30, 2024. The ratio then increased to 0.63 on September 30, 2024, before declining to 0.58 on December 31, 2024.
Overall, the trend in Now Inc.'s quick ratio indicates some variability in its ability to cover short-term obligations with its quick assets. It is essential for the company to continue monitoring and managing its liquidity position to ensure it can meet its short-term liabilities effectively.
Peer comparison
Dec 31, 2024