Now Inc (DNOW)
Operating profit margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 140,000 | 143,000 | 150,000 | 143,000 | 131,000 | 103,000 | 69,000 | 40,000 | 9,000 | -35,000 | -66,000 | -95,000 | -420,000 | -520,000 | -485,000 | -439,000 | -83,000 | 76,000 | 88,000 | 89,000 |
| Revenue (ttm) | US$ in thousands | 2,319,000 | 2,310,000 | 2,299,000 | 2,244,000 | 2,133,000 | 2,021,000 | 1,883,000 | 1,744,000 | 1,632,000 | 1,520,000 | 1,407,000 | 1,377,000 | 1,620,000 | 1,939,000 | 2,364,000 | 2,770,000 | 2,951,000 | 3,076,000 | 3,147,000 | 3,148,000 |
| Operating profit margin | 6.04% | 6.19% | 6.52% | 6.37% | 6.14% | 5.10% | 3.66% | 2.29% | 0.55% | -2.30% | -4.69% | -6.90% | -25.93% | -26.82% | -20.52% | -15.85% | -2.81% | 2.47% | 2.80% | 2.83% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $140,000K ÷ $2,319,000K
= 6.04%
The operating profit margin of NOW Inc has shown a generally increasing trend over the past eight quarters, reflecting improved operational efficiency and profitability. The margin increased from 2.47% in Q1 2022 to 6.03% in Q4 2023, indicating a positive trajectory. This improvement suggests that NOW Inc has been effectively managing its operating expenses and generating stronger operating profits relative to its revenue during this period. The company's ability to sustain and increase its operating profit margin can be seen as a positive sign of its financial health and management effectiveness.
Peer comparison
Dec 31, 2023