Now Inc (DNOW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.55% | 23.05% | 23.69% | 21.88% | 18.04% |
| Operating profit margin | 4.76% | 6.03% | 6.13% | 0.55% | 11.98% |
| Pretax margin | 4.80% | 5.95% | 6.51% | 0.74% | -26.56% |
| Net profit margin | 3.41% | 10.64% | 5.99% | 0.31% | -26.37% |
Now Inc's profitability has shown some fluctuations over the years. The gross profit margin has been gradually increasing from 18.04% in December 2020 to 22.55% in December 2024, indicating an improvement in the efficiency of the company's production and distribution processes.
In contrast, the operating profit margin has been more volatile, starting at 11.98% in December 2020, dropping significantly to 0.55% in December 2021, and gradually recovering to 4.76% in December 2024. This suggests that the company may have faced challenges in managing its operating expenses efficiently during the period.
The pretax margin, which reflects the company's profitability before accounting for taxes, also showed fluctuations. Starting at -26.56% in December 2020, it improved to 4.80% in December 2024. This indicates that Now Inc may have successfully managed its costs and expenses over the years to enhance its profitability.
Finally, the net profit margin, which represents the company's bottom-line profitability after all expenses have been deducted, has shown a mixed trend. It started at -26.37% in December 2020, improved to 10.64% in December 2023, but then dropped to 3.41% in December 2024. This fluctuation suggests that Now Inc may have experienced changes in its revenue and expenses that impacted its overall profitability.
In conclusion, while Now Inc has made progress in improving its gross profit margin and pretax margin over the years, it may need to focus on stabilizing and enhancing its operating profit margin and net profit margin for sustained profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.97% | 9.16% | 9.92% | 0.82% | 19.25% |
| Return on assets (ROA) | 5.00% | 16.15% | 9.70% | 0.45% | -42.36% |
| Return on total capital | 10.55% | 13.21% | 17.93% | 2.39% | -15.02% |
| Return on equity (ROE) | 7.18% | 23.30% | 15.20% | 0.70% | -61.09% |
Now Inc's profitability ratios show a mixed performance over the last five years.
- The Operating Return on Assets (Operating ROA) decreased from 19.25% in 2020 to 0.82% in 2021, before improving to 9.92% in 2022. However, it declined again to 9.16% in 2023 and further to 6.97% in 2024. This indicates fluctuating performance in generating operating profits relative to its total assets.
- The Return on Assets (ROA) was negative at -42.36% in 2020, then improved to 0.45% in 2021 and further to 9.70% in 2022. In 2023, ROA increased significantly to 16.15%, but decreased to 5.00% in 2024. This indicates varying success in generating profits from its assets.
- The Return on Total Capital increased from -15.02% in 2020 to 2.39% in 2021, then significantly improved to 17.93% in 2022. However, it decreased to 13.21% in 2023 and further to 10.55% in 2024. This suggests fluctuations in the company's ability to generate returns from its total capital.
- The Return on Equity (ROE) was negative at -61.09% in 2020, then improved to 0.70% in 2021 and further to 15.20% in 2022. In 2023, ROE increased notably to 23.30%, but declined to 7.18% in 2024. This indicates fluctuating profitability levels in relation to the company's equity.
Overall, Now Inc's profitability ratios display inconsistent performance, with fluctuations in the ability to generate profits relative to assets, capital, and equity over the analyzed period.