Now Inc (DNOW)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,529,000 | 1,376,000 | 1,420,000 | 1,329,000 | 1,320,000 | 1,282,000 | 1,202,000 | 1,162,000 | 1,104,000 | 1,104,000 | 1,070,000 | 1,026,000 | 1,008,000 | 1,039,000 | 1,069,000 | 1,196,000 | 1,591,000 | 1,790,000 | 1,849,000 | 1,896,000 |
| Operating ROA | 9.16% | 10.39% | 10.56% | 10.76% | 9.92% | 8.03% | 5.74% | 3.44% | 0.82% | -3.17% | -6.17% | -9.26% | -41.67% | -50.05% | -45.37% | -36.71% | -5.22% | 4.25% | 4.76% | 4.69% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $140,000K ÷ $1,529,000K
= 9.16%
To analyze NOW Inc's operating return on assets (ROA) based on the provided data:
1. Trend Analysis: There is a fluctuating pattern in the operating ROA over the past eight quarters. The operating ROA percentages range from 3.70% in Q1 2022 to a peak of 11.51% in Q1 2023.
2. Improvement Trend: There is an overall positive trend in the operating ROA from Q1 2022 to Q1 2023, indicating an improvement in the company's ability to generate operating income from its assets.
3. Volatility: The operating ROA fluctuates notably, reaching as high as 11.51% in Q1 2023 and as low as 3.70% in Q1 2022. This volatility could indicate variability in the company's operating performance and efficiency.
4. Comparison to Industry: It is essential to benchmark NOW Inc's operating ROA against industry peers to assess its relative performance in generating operating income from its assets.
5. Further Analysis Required: To gain a deeper understanding of the factors driving the changes in operating ROA, additional analysis of the company's operational efficiency, asset utilization, profitability, and overall business performance is necessary.
Peer comparison
Dec 31, 2023