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.
Peer comparison
Dec 31, 2023