Now Inc (DNOW)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.44 | 1.57 | 1.55 | 1.44 | 1.39 |
The solvency ratios of NOW Inc as reflected in the table above demonstrate a consistent trend of maintaining low levels of debt relative to assets, capital, and equity over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been consistently at 0.00, indicating that the company has not taken on any significant debt in relation to its overall financial structure.
However, the financial leverage ratio has shown some variability, ranging from 1.39 in 2019 to 1.57 in 2022, before settling at 1.44 in 2023. This ratio indicates that the company's financial leverage has increased slightly in recent years, but it still remains within a reasonable range.
Overall, based on the solvency ratios provided, NOW Inc appears to have a strong financial position with minimal debt obligations compared to its assets and equity, suggesting a stable and sound financial structure.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 140.00 | 131.00 | 9.00 | -420.00 | -0.37 |
Interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense. A higher interest coverage ratio indicates that the company is more capable of paying its interest expenses.
Unfortunately, the data provided does not include the actual figures for NOW Inc's interest coverage ratio for the years 2019 to 2023. Without this information, it is not possible to assess the company's ability to cover its interest payments during these periods. It would be beneficial to obtain the EBIT and interest expense figures in order to calculate the interest coverage ratios and gain insights into NOW Inc's financial health.