Now Inc (DNOW)

Net profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 81,000 205,000 227,000 237,000 247,000 131,000 137,000 129,000 128,000 109,000 73,000 45,000 5,000 -51,000 -78,000 -106,000 -427,000 -522,000 -490,000 -446,000
Revenue (ttm) US$ in thousands 2,373,000 2,357,000 2,339,000 2,300,000 2,321,000 2,313,000 2,302,000 2,247,000 2,136,000 2,021,000 1,883,000 1,744,000 1,632,000 1,519,000 1,406,000 1,376,000 1,619,000 1,939,000 2,364,000 2,770,000
Net profit margin 3.41% 8.70% 9.71% 10.30% 10.64% 5.66% 5.95% 5.74% 5.99% 5.39% 3.88% 2.58% 0.31% -3.36% -5.55% -7.70% -26.37% -26.92% -20.73% -16.10%

December 31, 2024 calculation

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

Now Inc's net profit margin experienced significant fluctuations over the past few years. The net profit margin, which is a measure of the company's profitability, reflects the percentage of revenue that remains as profit after all expenses are deducted.

From March 2020 to December 2021, the net profit margin was consistently negative, indicating that Now Inc was experiencing losses during this period. However, there was a notable improvement in the company's profitability starting from March 2022, where the net profit margin turned positive and continued to increase steadily until December 2023.

The peak net profit margin of 10.64% was reached at the end of December 2023, reflecting a strong performance in terms of generating profits relative to revenue. However, there was a decline in profitability by the end of December 2024, with the net profit margin dropping to 3.41%.

Overall, the trend indicates a turnaround in Now Inc's profitability, with a significant improvement from loss-making to profitable operations. It is essential for the company to sustain this positive momentum and continue to enhance efficiency and control costs to maintain a healthy net profit margin in the future.