Now Inc (DNOW)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,060,000 | 842,000 | 711,000 | 699,000 | 1,144,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,060,000K)
= 0.00
The debt-to-capital ratio for NOW Inc has been consistently at 0.00 for the past five years, indicating that the company has not used any debt to finance its operations relative to its total capital structure. A debt-to-capital ratio of 0.00 signifies that all of the company's capital is derived from equity, suggesting a low risk of financial distress and a strong financial position with no leverage. While this can be positive in terms of financial stability and independence from debt-related risks, it may also indicate a missed opportunity to benefit from the tax advantages and potential cost savings associated with utilizing debt financing. Moving forward, it will be important for NOW Inc to evaluate its capital structure and consider the optimal mix of debt and equity to support its growth and maximize shareholder value.
Peer comparison
Dec 31, 2023