Now Inc (DNOW)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 247,000 | 128,000 | 5,000 | -427,000 | -97,000 |
| Revenue | US$ in thousands | 2,319,000 | 2,133,000 | 1,632,000 | 1,620,000 | 2,950,000 |
| Net profit margin | 10.65% | 6.00% | 0.31% | -26.36% | -3.29% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $247,000K ÷ $2,319,000K
= 10.65%
The net profit margin for NOW Inc has shown a fluctuating trend over the past five years. In 2019, the company had a negative net profit margin of -3.29%, indicating that the company's expenses exceeded its revenues. However, since then, there has been a significant improvement in profitability, with the net profit margin increasing to -26.37% in 2020, 0.31% in 2021, 5.99% in 2022, and 10.64% in 2023.
This upward trend in net profit margin suggests that NOW Inc has been able to effectively manage its costs and improve its operational efficiency in recent years, resulting in a higher percentage of net income relative to its revenue. This improvement in profitability is a positive sign for the company's financial health and indicates potential growth and sustainability in the future. However, it is important to continue monitoring the net profit margin to ensure that the company maintains and further enhances its profitability over time.
Peer comparison
Dec 31, 2023