Now Inc (DNOW)

Operating 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
Operating income (ttm)	US$ in thousands	121,000	126,000	140,000	138,000	142,000	143,000	150,000	143,000	131,000	103,000	69,000	-92,000	-123,000	-167,000	-198,000	-95,000	-420,000	-520,000	-485,000	-439,000
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
Operating profit margin		5.10%	5.35%	5.99%	6.00%	6.12%	6.18%	6.52%	6.36%	6.13%	5.10%	3.66%	-5.28%	-7.54%	-10.99%	-14.08%	-6.90%	-25.94%	-26.82%	-20.52%	-15.85%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $121,000K ÷ $2,373,000K
= 5.10%

Now Inc's operating profit margin has shown a fluctuating trend over the past several quarters. Starting from negative margins in early 2020, the company experienced a steady improvement in its operating profit margin, turning positive in mid-2022. The trend continued to strengthen through the following quarters, reaching its peak at 6.52% by June 30, 2023.

However, the operating profit margin saw a slight decline in the subsequent quarters, hovering around the 6% mark. The margin stayed relatively stable between 5% and 6% from March 2024 to December 2024.

This indicates that Now Inc has made significant progress in improving its operational efficiency and cost management, leading to more favorable operating profit margins in recent periods. Maintaining this positive trend and potentially further enhancing operational performance could contribute to the company's overall financial health and sustainability in the long term.