Now Inc (DNOW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 22.12% | 22.38% | 22.75% | 22.68% | 22.50% | 22.41% | 21.83% | 21.67% | 20.96% | 18.75% | 17.77% | 16.99% | -2.35% | -4.13% | 0.30% | 3.21% | 15.11% | 19.70% | 19.83% | 19.95% |
| Operating profit margin | 6.04% | 6.19% | 6.52% | 6.37% | 6.14% | 5.10% | 3.66% | 2.29% | 0.55% | -2.30% | -4.69% | -6.90% | -25.93% | -26.82% | -20.52% | -15.85% | -2.81% | 2.47% | 2.80% | 2.83% |
| 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% |
| Net profit margin | 10.65% | 5.71% | 5.96% | 5.75% | 6.00% | 5.34% | 3.88% | 2.58% | 0.31% | -3.36% | -5.54% | -7.70% | -26.36% | -26.92% | -20.73% | -16.10% | -3.29% | 1.89% | 2.16% | 2.16% |
NOW Inc's profitability ratios show varying trends over the past eight quarters.
The gross profit margin has been relatively stable, hovering around 23% throughout the period. This indicates that NOW Inc has been able to efficiently control its cost of goods sold and generate consistent gross profits from its operations.
The operating profit margin has shown a positive trend, increasing from 2.47% in Q1 2022 to 6.03% in Q4 2023. This suggests that NOW Inc has been able to improve its operational efficiency and generate higher profits from its core business activities.
The pretax margin has also shown an upward trend, reaching 6.43% in Q2 2023 before slightly declining in the following quarters. This indicates that NOW Inc has been effectively managing its operating expenses and other costs, resulting in improved profitability before taxes.
The net profit margin has shown significant fluctuations, with highs and lows across the quarters. The margin improved notably in Q4 2023 to 10.64%, indicating that NOW Inc was able to generate higher profits after accounting for all expenses and taxes in that quarter.
In conclusion, NOW Inc's profitability ratios demonstrate overall stability in gross profit margins, improving operational efficiency as seen in the operating and pretax margins, and fluctuating but relatively positive trends in net profit margins. These metrics suggest that the company has been making efforts to enhance its profitability over the analyzed period.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 16.15% | 9.59% | 9.65% | 9.71% | 9.70% | 8.42% | 6.07% | 3.87% | 0.45% | -4.62% | -7.29% | -10.33% | -42.36% | -50.24% | -45.84% | -37.29% | -6.10% | 3.24% | 3.68% | 3.59% |
| Return on total capital | 13.21% | 15.82% | 17.16% | 17.00% | 15.56% | 12.81% | 8.88% | 5.36% | 1.27% | -5.01% | -9.48% | -13.73% | -60.09% | -71.14% | -64.93% | -57.16% | -7.26% | 6.00% | 6.64% | 6.50% |
| Return on equity (ROE) | 23.30% | 14.60% | 15.68% | 15.34% | 15.20% | 13.43% | 9.40% | 6.03% | 0.70% | -7.30% | -11.21% | -15.32% | -61.09% | -71.41% | -65.60% | -58.07% | -8.48% | 4.58% | 5.38% | 5.46% |
NOW Inc's profitability ratios show varying performance over the past eight quarters.
1. Operating return on assets (Operating ROA) has generally been increasing from Q1 2022 to Q4 2023, indicating that the company has become more efficient in generating operating profit from its assets.
2. Return on assets (ROA) has fluctuated over the periods but has generally shown an upward trend from Q1 2022 to Q4 2023. This suggests that NOW Inc has been able to generate higher profits from its total assets.
3. Return on total capital has also shown an increasing trend from Q1 2022 to Q4 2023, indicating that the company has been effectively utilizing its total capital to generate returns.
4. Return on equity (ROE) has shown fluctuations but generally trended upwards from Q1 2022 to Q4 2023. This indicates that NOW Inc has been able to generate higher returns for its shareholders over time.
Overall, the profitability ratios of NOW Inc demonstrate an improving trend in generating returns from its assets, capital, and equity over the past quarters, showcasing positive financial performance. However, it is essential to continue monitoring these ratios to ensure sustained profitability and efficiency in the future.