Now Inc (DNOW)
Gross profit margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 513,000 | 517,000 | 523,000 | 509,000 | 480,000 | 453,000 | 411,000 | 378,000 | 342,000 | 285,000 | 250,000 | 234,000 | -38,000 | -80,000 | 7,000 | 89,000 | 446,000 | 606,000 | 624,000 | 628,000 |
| Revenue (ttm) | US$ in thousands | 2,319,000 | 2,310,000 | 2,299,000 | 2,244,000 | 2,133,000 | 2,021,000 | 1,883,000 | 1,744,000 | 1,632,000 | 1,520,000 | 1,407,000 | 1,377,000 | 1,620,000 | 1,939,000 | 2,364,000 | 2,770,000 | 2,951,000 | 3,076,000 | 3,147,000 | 3,148,000 |
| Gross profit margin | 22.12% | 22.38% | 22.75% | 22.68% | 22.50% | 22.41% | 21.83% | 21.67% | 20.96% | 18.75% | 17.77% | 16.99% | -2.35% | -4.13% | 0.30% | 3.21% | 15.11% | 19.70% | 19.83% | 19.95% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $513,000K ÷ $2,319,000K
= 22.12%
NOW Inc's gross profit margin has shown fluctuations over the past eight quarters. The gross profit margin ranged from a low of 22.31% in Q1 2022 to a high of 23.85% in Q1 2023. Overall, the trend has been relatively stable, with the margin averaging around 23%. However, there was a slight decline in the most recent quarter (Q4 2023) to 23.05% compared to Q3 2023 which was at 23.22%.
The gross profit margin indicates the efficiency of NOW Inc in managing its production costs and pricing strategies. A higher gross profit margin suggests that the company is able to generate more profit from its core business activities. Investors and analysts should continue to monitor fluctuations in the gross profit margin to assess the company's operational performance and competitive position in the market.
Peer comparison
Dec 31, 2023