Now Inc (DNOW)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 247,000 | 128,000 | 5,000 | -427,000 | -97,000 |
| Total assets | US$ in thousands | 1,529,000 | 1,320,000 | 1,104,000 | 1,008,000 | 1,591,000 |
| ROA | 16.15% | 9.70% | 0.45% | -42.36% | -6.10% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $247,000K ÷ $1,529,000K
= 16.15%
NOW Inc's return on assets (ROA) has shown a positive trend over the past five years, with ROA increasing from -6.10% in 2019 to 16.15% in 2023. This indicates an improvement in the company's ability to generate profits relative to its total assets.
The significant increase in ROA from negative percentages in 2020 and 2021 to positive percentages in 2022 and 2023 suggests that NOW Inc has made operational improvements or strategic changes that have positively impacted its profitability.
Overall, the upward trend in ROA reflects improved efficiency in managing the company's assets to generate profits, which may be indicative of effective management decisions and operational performance. Investors and stakeholders may view this positive trend favorably as it indicates a stronger financial performance and potentially higher returns on investment.
Peer comparison
Dec 31, 2023