Now Inc (DNOW)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 1,060,000 904,000 874,000 841,000 842,000 804,000 777,000 746,000 711,000 699,000 696,000 692,000 699,000 731,000 747,000 768,000 1,144,000 1,267,000 1,264,000 1,245,000
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $247,000K ÷ $1,060,000K
= 23.30%

To analyze NOW Inc's return on equity (ROE) over the past eight quarters, we observe the following trends:

- The ROE has been consistently positive over the period, indicating that the company's profitability relative to its shareholders' equity has generally been favorable.

- There is an increasing trend in ROE from Q1 2022 (6.03%) to Q4 2023 (23.30%), suggesting that the company has been able to generate higher profits relative to its equity base over time.

- Q4 2023 shows a significant peak in ROE at 23.30%, which may indicate improved efficiency in utilizing the shareholders' equity to generate profits during that quarter.

- The quarterly fluctuations in ROE show some variability, with Q3 and Q4 of 2022 exhibiting higher ROE values compared to earlier quarters in 2022.

Overall, the increasing trend in ROE and the consistently positive values indicate that NOW Inc has been effectively utilizing its equity to generate profits for its shareholders, with a notable improvement in performance in the later quarters of the analyzed period.