Now Inc (DNOW)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 81,000 | 205,000 | 227,000 | 237,000 | 247,000 | 131,000 | 137,000 | 129,000 | 128,000 | 109,000 | 73,000 | 45,000 | 5,000 | -51,000 | -78,000 | -106,000 | -427,000 | -522,000 | -490,000 | -446,000 |
| Total stockholders’ equity | US$ in thousands | 1,128,000 | 1,114,000 | 1,095,000 | 1,076,000 | 1,060,000 | 904,000 | 874,000 | 841,000 | 842,000 | 804,000 | 777,000 | 746,000 | 712,000 | 699,000 | 696,000 | 692,000 | 699,000 | 731,000 | 747,000 | 768,000 |
| ROE | 7.18% | 18.40% | 20.73% | 22.03% | 23.30% | 14.49% | 15.68% | 15.34% | 15.20% | 13.56% | 9.40% | 6.03% | 0.70% | -7.30% | -11.21% | -15.32% | -61.09% | -71.41% | -65.60% | -58.07% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $81,000K ÷ $1,128,000K
= 7.18%
Now Inc's return on equity (ROE) has shown a significant improvement over the last few years based on the provided data. The ROE was negative in the initial quarters of the data set and reached a low point of -71.41% in September 2020. However, there has been a consistent trend of improvement since then.
From December 2021 onwards, the ROE turned positive, indicating that the company's profitability relative to shareholder equity has strengthened. The ROE continued to rise steadily, reaching a peak of 23.30% in December 2023, which reflects an impressive turnaround in the company's ability to generate profits using shareholders' equity.
However, there was a slight decline in ROE in the subsequent periods, dropping to 18.40% in September 2024. This decrease may warrant further investigation to understand the factors impacting the company's profitability and efficiency in utilizing shareholder funds.
Overall, Now Inc's ROE performance demonstrates a positive trajectory in recent years, showing the company's efforts to enhance profitability and create value for its shareholders.
Peer comparison
Dec 31, 2024