Now Inc (DNOW)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 247,000 | 132,000 | 137,000 | 129,000 | 128,000 | 108,000 | 73,000 | 45,000 | 5,000 | -51,000 | -78,000 | -106,000 | -427,000 | -522,000 | -490,000 | -446,000 | -97,000 | 58,000 | 68,000 | 68,000 |
| Total assets | US$ in thousands | 1,529,000 | 1,376,000 | 1,420,000 | 1,329,000 | 1,320,000 | 1,282,000 | 1,202,000 | 1,162,000 | 1,104,000 | 1,104,000 | 1,070,000 | 1,026,000 | 1,008,000 | 1,039,000 | 1,069,000 | 1,196,000 | 1,591,000 | 1,790,000 | 1,849,000 | 1,896,000 |
| 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% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $247,000K ÷ $1,529,000K
= 16.15%
To analyze NOW Inc's return on assets (ROA) based on the provided data, we can observe a positive trend in the ROA figures over the quarters within the past two years. The ROA has shown an increase from 3.87% in Q1 2022 to 16.15% in Q4 2023, indicating an improvement in the company's efficiency in generating profits relative to its assets.
The consistent rise in ROA suggests that NOW Inc has been effectively utilizing its assets to generate earnings, reflecting operational efficiency and potentially better management of resources.
The performance of NOW Inc in terms of ROA has demonstrated a positive trajectory, indicating an improvement in the company's overall profitability and efficiency in utilizing its assets. This upward trend is a positive signal for investors and stakeholders, showcasing the company's ability to generate returns relative to its asset base.
Peer comparison
Dec 31, 2023