Now Inc (DNOW)

Net profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 81,000 247,000 128,000 5,000 -427,000
Revenue US$ in thousands 2,373,000 2,321,000 2,136,000 1,632,000 1,619,000
Net profit margin 3.41% 10.64% 5.99% 0.31% -26.37%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $81,000K ÷ $2,373,000K
= 3.41%

Now Inc's net profit margin has shown significant improvement over the past few years. The company experienced a negative net profit margin of -26.37% as of December 31, 2020, indicating that its expenses exceeded its revenues, resulting in a loss. However, there has been a notable turnaround, with the net profit margin increasing to 0.31% by December 31, 2021, and further improving to 5.99% by December 31, 2022. This positive trend continued in the following years, with the net profit margin reaching 10.64% by December 31, 2023.

Despite the substantial improvement, there was a slight decline in the net profit margin to 3.41% by December 31, 2024. While this decrease may raise some concerns, it is important to note that the company still maintained a positive net profit margin, indicating that it was able to generate more profits relative to its revenue.

Overall, the upward trend in Now Inc's net profit margin reflects the company's efforts to enhance operational efficiency and profitability over the years, although the slight decline in the most recent year may warrant further investigation to ensure sustainable growth in the future.