Now Inc (DNOW)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 1,529,000 | 1,320,000 | 1,104,000 | 1,008,000 | 1,591,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $1,529,000K
= 0.00
The debt-to-assets ratio for NOW Inc has consistently been 0.00 for the past five years, indicating that the company has not used debt to finance its assets during this period. A debt-to-assets ratio of 0.00 means that the company's assets are entirely financed by equity and not by debt. This suggests a conservative financial strategy, as the company is not relying on borrowed funds to support its operations and growth. It also indicates a strong financial position with a low risk of financial distress due to debt obligations. However, it is important to note that a low debt-to-assets ratio may also imply missed opportunities for leveraging financial benefits that debt financing can offer. Overall, the consistent 0.00 debt-to-assets ratio signals a prudent and stable financial position for NOW Inc.
Peer comparison
Dec 31, 2023