Now Inc (DNOW)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 113,000 | 140,000 | 131,000 | 9,000 | 194,000 |
| Revenue | US$ in thousands | 2,373,000 | 2,321,000 | 2,136,000 | 1,632,000 | 1,619,000 |
| Operating profit margin | 4.76% | 6.03% | 6.13% | 0.55% | 11.98% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $113,000K ÷ $2,373,000K
= 4.76%
Operating profit margin, a key financial ratio that measures a company's profitability, has fluctuated for Now Inc over the past five years. In December 2020, the operating profit margin was 11.98%, indicating a healthy level of profitability. However, this margin significantly dropped to 0.55% by December 2021, suggesting a sharp decline in profitability.
Subsequently, the operating profit margin improved to 6.13% by December 2022 and remained relatively stable at 6.03% by December 2023. However, there was a slight decrease to 4.76% by December 2024, indicating a slight decline in profitability.
Overall, the trend in Now Inc's operating profit margin shows some volatility, with a notable decrease in 2021 followed by fluctuations in subsequent years. It is important for the company to closely monitor and potentially improve its operating efficiency in order to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024