Now Inc (DNOW)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 137,000 | 138,000 | 12,000 | -430,000 | -93,000 |
| Revenue | US$ in thousands | 2,319,000 | 2,133,000 | 1,632,000 | 1,620,000 | 2,950,000 |
| Pretax margin | 5.91% | 6.47% | 0.74% | -26.54% | -3.15% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $137,000K ÷ $2,319,000K
= 5.91%
The pretax margin for NOW Inc has fluctuated over the past five years, ranging from a low of -26.56% in 2020 to a high of 6.51% in 2022. The company demonstrated a significant improvement in pretax margin from 2020 to 2023, increasing from -26.56% to 5.95%. However, it is important to note that the pretax margin in 2021 remained low at 0.74%.
Overall, the pretax margin trend indicates variability in the company's ability to generate profits before accounting for taxes over the past five years. Management should continue to monitor and assess factors impacting profitability to ensure sustainable performance in the future.
Peer comparison
Dec 31, 2023