Now Inc (DNOW)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 535,000 535,000 506,000 357,000 292,000
Revenue US$ in thousands 2,373,000 2,321,000 2,136,000 1,632,000 1,619,000
Gross profit margin 22.55% 23.05% 23.69% 21.88% 18.04%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $535,000K ÷ $2,373,000K
= 22.55%

Now Inc's gross profit margin has shown a upward trend over the past five years, increasing from 18.04% as of December 31, 2020, to 22.55% as of December 31, 2024. This indicates that the company has been able to effectively manage its cost of goods sold and generate a higher percentage of revenue as gross profit. However, there was a slight dip in 2023, when the margin decreased to 23.05% from the peak of 23.69% in 2022. Overall, the trend suggests an improvement in the efficiency of Now Inc's operations in terms of generating gross profit from its sales.