Now Inc (DNOW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 22.76% | 22.78% | 22.92% | 22.96% | 23.05% | 23.22% | 23.54% | 23.85% | 23.69% | 23.50% | 22.94% | 22.31% | 21.88% | 19.82% | 18.99% | 18.17% | 18.04% | 19.19% | 19.46% | 19.68% |
| Operating profit margin | 5.10% | 5.35% | 5.99% | 6.00% | 6.12% | 6.18% | 6.52% | 6.36% | 6.13% | 5.10% | 3.66% | -5.28% | -7.54% | -10.99% | -14.08% | -6.90% | -25.94% | -26.82% | -20.52% | -15.85% |
| Pretax margin | 4.80% | 4.88% | 5.56% | 5.74% | 5.95% | 6.10% | 6.43% | 6.28% | 6.51% | 5.94% | 4.41% | 3.10% | 0.74% | -3.16% | -5.41% | -7.70% | -26.56% | -27.02% | -20.77% | -16.06% |
| Net profit margin | 3.41% | 8.70% | 9.71% | 10.30% | 10.64% | 5.66% | 5.95% | 5.74% | 5.99% | 5.39% | 3.88% | 2.58% | 0.31% | -3.36% | -5.55% | -7.70% | -26.37% | -26.92% | -20.73% | -16.10% |
Now Inc's profitability ratios have shown some fluctuations over the reported periods.
- The gross profit margin has been gradually increasing from 19.68% in March 2020 to 22.76% in December 2024. This indicates the company has been able to improve its efficiency in generating profits from its core business operations.
- The operating profit margin started at a low of -26.82% in September 2020 but has steadily improved to 5.10% by December 2024. This signifies that the company has been able to better control its operating expenses and streamline its operations over time.
- The pretax margin has also shown a positive trend, moving from negative figures to 4.80% by December 2024. This indicates that the company's earnings before taxes have shown improvement, reflecting better financial management.
- The net profit margin, which reflects the company's bottom line profitability, has shown significant improvement, moving from negative figures to 3.41% by December 2024. This suggests that Now Inc has been able to generate more profits after accounting for all expenses and taxes.
Overall, the trend in profitability ratios indicates that Now Inc has been making strides in improving its operational efficiency and financial performance over the reported periods.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 5.00% | 12.92% | 14.52% | 14.87% | 16.15% | 9.52% | 9.65% | 9.71% | 9.70% | 8.50% | 6.07% | 3.87% | 0.45% | -4.62% | -7.29% | -10.33% | -42.36% | -50.24% | -45.84% | -37.29% |
| Return on total capital | 10.73% | 11.13% | 12.15% | 12.64% | 13.21% | 15.27% | 16.59% | 17.60% | 16.15% | 14.43% | 10.55% | 5.76% | 2.25% | -4.72% | -9.20% | -13.44% | -14.59% | -9.85% | -4.95% | 1.17% |
| Return on equity (ROE) | 7.18% | 18.40% | 20.73% | 22.03% | 23.30% | 14.49% | 15.68% | 15.34% | 15.20% | 13.56% | 9.40% | 6.03% | 0.70% | -7.30% | -11.21% | -15.32% | -61.09% | -71.41% | -65.60% | -58.07% |
Now Inc's profitability ratios have shown an improving trend over the last few years.
- The Operating Return on Assets (Operating ROA) has increased from negative figures in the early quarters of 2020 to around 8-10% in the most recent quarters of 2023 and 2024. This indicates that the company has been able to generate more operating income relative to its total assets in recent periods.
- The Return on Assets (ROA) also reflects this positive trend, transitioning from negative values in 2020 to reaching around 5% by the end of 2024. This demonstrates an enhancement in the company's ability to generate profits from its total assets over time.
- The Return on Total Capital has significantly improved from negative values in 2020 to around 12-14% by the end of 2024. This metric reflects the company's efficiency in generating returns from both equity and debt capital employed in its operations.
- The Return on Equity (ROE) has also seen a notable improvement, with the company progressing from negative values in 2020 to achieving around 7-23% by the end of 2024. This demonstrates an enhancement in the company's ability to generate profits for its shareholders from their equity investments.
Overall, the profitability ratios of Now Inc indicate a positive trend of improvement, reflecting the company's enhanced efficiency and ability to generate returns for both its asset base and shareholders over the years.