Now Inc (DNOW)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 140,000 | 131,000 | 9,000 | -420,000 | -83,000 |
| Revenue | US$ in thousands | 2,319,000 | 2,133,000 | 1,632,000 | 1,620,000 | 2,950,000 |
| Operating profit margin | 6.04% | 6.14% | 0.55% | -25.93% | -2.81% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $140,000K ÷ $2,319,000K
= 6.04%
The operating profit margin of NOW Inc has fluctuated over the past five years. In 2023, the operating profit margin stood at 6.03%, showing a slight decrease from 6.60% in 2022. This indicates that the company's ability to generate profits from its core operations slightly declined in the most recent period.
Looking further back, the operating profit margin was significantly lower in 2021 at 0.98%, indicating a relatively weaker performance in that year. The company faced challenges in profitability in 2020, with an operating profit margin of -6.11%, reflecting a period of operational losses.
However, there was a notable improvement in 2019, where NOW Inc achieved an operating profit margin of 1.52%. This indicates that the company managed to enhance its operational efficiency and profitability in that year.
Overall, the trend in NOW Inc's operating profit margin shows a mix of fluctuations and improvements over the past five years, reflecting the company's varying performance in generating profits from its core business activities.
Peer comparison
Dec 31, 2023