Now Inc (DNOW)
Return on equity (ROE)
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 stockholders’ equity | US$ in thousands | 1,128,000 | 1,060,000 | 842,000 | 712,000 | 699,000 |
ROE | 7.18% | 23.30% | 15.20% | 0.70% | -61.09% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $81,000K ÷ $1,128,000K
= 7.18%
Now Inc's return on equity (ROE) has shown a significant improvement over the analyzed period. The ROE was negative at -61.09% as of December 31, 2020, indicating that the company was not efficiently generating profits from its shareholders' equity. However, by December 31, 2021, the ROE increased to 0.70%, reflecting a turnaround in the company's profitability.
The trend continued positively, with the ROE rising to 15.20% by December 31, 2022, suggesting that Now Inc was able to generate a higher return on the shareholders' equity invested in the business. Subsequently, by December 31, 2023, the ROE further improved to 23.30%, indicating a more efficient utilization of equity to generate profits for shareholders.
However, there was a slight dip in the ROE to 7.18% as of December 31, 2024, which might indicate a decrease in profitability relative to the previous year. Overall, the positive trend in ROE from negative values to double-digit percentages showcases an improvement in Now Inc's ability to generate profit from shareholders' equity, although the fluctuation in the last reported year may warrant further investigation.
Peer comparison
Dec 31, 2024