Now Inc (DNOW)

Operating return on assets (Operating ROA)

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
Total assets US$ in thousands 1,621,000 1,529,000 1,320,000 1,104,000 1,008,000
Operating ROA 6.97% 9.16% 9.92% 0.82% 19.25%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $113,000K ÷ $1,621,000K
= 6.97%

Now Inc's operating return on assets (ROA) has fluctuated over the past five years.

In December 2020, the operating ROA was strong at 19.25%, indicating that the company generated substantial operating income from its assets during that period. However, by December 2021, the operating ROA dropped significantly to 0.82%, suggesting a sharp decline in the company's ability to generate operating income relative to its assets.

Subsequently, in December 2022, the operating ROA improved to 9.92%, showing a recovery in the company's operational efficiency and profitability. This positive trend continued in December 2023, with an operating ROA of 9.16%, indicating continued effectiveness in utilizing its assets to generate operating income.

However, by December 2024, the operating ROA declined to 6.97%, signaling a slight decrease in the company's efficiency in generating operating income from its assets compared to the previous period.

Overall, the fluctuating trend in Now Inc's operating ROA highlights periods of both strength and weakness in the company's operational performance and asset utilization over the past five years. Further analysis of the underlying factors driving these fluctuations may be necessary to understand the company's overall financial health and sustainability.