Now Inc (DNOW)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 140,000 | 131,000 | 9,000 | -420,000 | -83,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,060,000 | 842,000 | 711,000 | 699,000 | 1,144,000 |
| Return on total capital | 13.21% | 15.56% | 1.27% | -60.09% | -7.26% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $140,000K ÷ ($—K + $1,060,000K)
= 13.21%
The return on total capital for NOW Inc has fluctuated over the past five years. In 2023, the return on total capital was 13.21%, showing a decrease from 16.75% in 2022. Despite this decrease, the company still achieved a positive return on total capital in 2023. In 2021, the return on total capital was 2.25%, indicating a slight improvement from the negative return of -14.16% in 2020. The return on total capital was 3.93% in 2019, demonstrating a positive trend compared to the previous year but lower than in 2023. Overall, the trend in the return on total capital shows variability over the years, with fluctuations in performance.
Peer comparison
Dec 31, 2023