Now Inc (DNOW)

Debt-to-equity ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands — — — — —
Total stockholders’ equity US$ in thousands 1,128,000 1,060,000 842,000 712,000 699,000
Debt-to-equity ratio 0.00 0.00 0.00 0.00 0.00

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,128,000K
= 0.00

The debt-to-equity ratio for Now Inc, as reflected in the financial data provided, has consistently remained at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized any debt to finance its operations during this period and has relied solely on equity funding. A debt-to-equity ratio of 0.00 typically suggests that the company has a conservative financial structure with a low level of financial leverage. This can be viewed positively by investors and creditors as it signifies a lower risk of financial distress arising from excessive debt. It also indicates that the company may have a strong financial position and a healthy balance sheet that is not burdened by significant debt obligations. However, it is important to note that while a low debt-to-equity ratio may be favorable in terms of financial risk, it may also imply missed opportunities for potential growth or leveraging of capital for strategic investments.