Now Inc (DNOW)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,060,000K
= 0.00
NOW Inc has consistently maintained a debt-to-equity ratio of 0.00 over the past five years, indicating that the company has not utilized any debt to finance its operations relative to its equity. This low debt-to-equity ratio suggests that NOW Inc has a conservative capital structure and is not overly reliant on debt financing. This could be a positive sign for investors as it may indicate lower financial risk and potentially more stability in the company's financial position. However, it is important to note that a zero debt-to-equity ratio could also imply missed opportunities for leveraging debt for potential growth or tax advantages.
Peer comparison
Dec 31, 2023