Now Inc (DNOW)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 119,000 | 140,000 | 151,000 | 17,000 | -105,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,128,000 | 1,060,000 | 842,000 | 712,000 | 699,000 |
| Return on total capital | 10.55% | 13.21% | 17.93% | 2.39% | -15.02% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $119,000K ÷ ($—K + $1,128,000K)
= 10.55%
Based on the provided data, the return on total capital for Now Inc has shown significant fluctuations over the past five years.
In December 31, 2020, the return on total capital was negative at -15.02%, indicating that the company's capital investments did not generate satisfactory returns in that period. However, there was a noticeable improvement by December 31, 2021, with a return of 2.39%, showing a move towards profitability.
By December 31, 2022, Now Inc's return on total capital surged to 17.93%, signaling a substantial increase in the company's ability to generate returns on its invested capital. This positive trend continued in December 31, 2023, with a return of 13.21%, indicating continued growth and efficiency in capital utilization.
As of December 31, 2024, the return on total capital dropped slightly to 10.55%, but still remained at a respectable level, showcasing the company's ability to maintain profitability despite some fluctuations.
Overall, the data indicates that Now Inc has demonstrated varying levels of efficiency in utilizing its capital over the past five years, with improvements seen in recent years leading to better returns for its investors and stakeholders.
Peer comparison
Dec 31, 2024