Now Inc (DNOW)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 137,000 | 140,000 | 146,000 | 139,000 | 138,000 | 119,000 | 83,000 | 54,000 | 12,000 | -48,000 | -76,000 | -106,000 | -430,000 | -524,000 | -491,000 | -445,000 | -93,000 | 64,000 | 74,000 | 74,000 |
| Revenue (ttm) | US$ in thousands | 2,319,000 | 2,310,000 | 2,299,000 | 2,244,000 | 2,133,000 | 2,021,000 | 1,883,000 | 1,744,000 | 1,632,000 | 1,520,000 | 1,407,000 | 1,377,000 | 1,620,000 | 1,939,000 | 2,364,000 | 2,770,000 | 2,951,000 | 3,076,000 | 3,147,000 | 3,148,000 |
| Pretax margin | 5.91% | 6.06% | 6.35% | 6.19% | 6.47% | 5.89% | 4.41% | 3.10% | 0.74% | -3.16% | -5.40% | -7.70% | -26.54% | -27.02% | -20.77% | -16.06% | -3.15% | 2.08% | 2.35% | 2.35% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $137,000K ÷ $2,319,000K
= 5.91%
Pretax margin is a key profitability ratio that indicates the percentage of a company's revenue that translates into pre-tax profit. A higher pretax margin reflects better cost control and operational efficiency.
Analyzing NOW Inc's pretax margin over the past eight quarters, the ratio has shown some fluctuations. In Q4 2023, the pretax margin was 5.95%, slightly lower than the previous quarter's 6.10%. Despite the decrease, the company maintained a relatively stable pretax margin above 5% in the recent quarters.
Comparing the current pretax margin with the same quarter in the previous year, NOW Inc's performance has been relatively consistent with only minor fluctuations. Notably, the pretax margin in Q4 2023 (5.95%) was slightly lower than Q4 2022 (6.51%), indicating a slight decline in profitability year-over-year.
Overall, NOW Inc's pretax margin has shown a moderate level of profitability and efficiency in generating pre-tax profit from its revenue. It is important for the company to continue monitoring and optimizing its cost structure and operational performance to sustain and potentially improve its pretax margin in the future.
Peer comparison
Dec 31, 2023