Now Inc (DNOW)
Operating return on assets (Operating ROA)
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 |
Total assets | US$ in thousands | 1,621,000 | 1,587,000 | 1,563,000 | 1,594,000 | 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 |
Operating ROA | 7.46% | 7.94% | 8.96% | 8.66% | 9.29% | 10.39% | 10.56% | 10.76% | 9.92% | 8.03% | 5.74% | -7.92% | -11.14% | -15.13% | -18.50% | -9.26% | -41.67% | -50.05% | -45.37% | -36.71% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $121,000K ÷ $1,621,000K
= 7.46%
Now Inc's operating return on assets (ROA) is calculated by dividing operating income by average total assets. A negative operating ROA indicates that the company is generating operating losses relative to its asset base.
From March 31, 2020, to June 30, 2022, Now Inc had consistently negative operating ROA figures, ranging from -36.71% to -18.50%. This suggests that during this period, the company struggled to generate operating profits compared to the size of its asset base.
However, starting from September 30, 2022, the operating ROA turned positive, indicating an improvement in operational efficiency and profitability. The trend continued positively through December 31, 2024, with operating ROA ranging from 7.46% to 10.76%.
The increasing positive trend in operating ROA from 2022 to 2024 indicates that Now Inc has been able to better utilize its assets to generate operating income and improve profitability. This could be the result of effective cost management, operational improvements, or increased revenue generation. Nonetheless, it would be important to further investigate the company's operations to understand the drivers behind this improvement in operating ROA.
Peer comparison
Dec 31, 2024