Now Inc (DNOW)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 81,000 247,000 128,000 5,000 -427,000
Total assets US$ in thousands 1,621,000 1,529,000 1,320,000 1,104,000 1,008,000
ROA 5.00% 16.15% 9.70% 0.45% -42.36%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $81,000K ÷ $1,621,000K
= 5.00%

The return on assets (ROA) for Now Inc has shown a significant improvement over the past few years. In December 2020, the ROA was -42.36%, indicating a negative return on assets. However, by December 2021, the ROA had improved to 0.45%, reflecting a turnaround in the company's asset efficiency.

The positive trend continued into December 2022, with the ROA increasing to 9.70%, suggesting that Now Inc was effectively utilizing its assets to generate income. By December 2023, the ROA experienced a notable increase to 16.15%, indicating a substantial improvement in asset profitability.

However, in December 2024, the ROA decreased to 5.00%, demonstrating a slight dip in asset efficiency compared to the previous year. Overall, the trend in ROA for Now Inc reflects a significant turnaround in asset utilization and profitability, with some fluctuations in recent years.