Now Inc (DNOW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,621,000 | 1,529,000 | 1,320,000 | 1,104,000 | 1,008,000 |
| Total stockholders’ equity | US$ in thousands | 1,128,000 | 1,060,000 | 842,000 | 712,000 | 699,000 |
| Financial leverage ratio | 1.44 | 1.44 | 1.57 | 1.55 | 1.44 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,621,000K ÷ $1,128,000K
= 1.44
The financial leverage ratio of Now Inc has shown a slight increase over the past years, from 1.44 in December 2020 to 1.55 in December 2021, and further to 1.57 in December 2022. However, it decreased back to 1.44 in both December 2023 and December 2024.
This indicates that the company has been relying more on debt to finance its operations in recent years, which can increase the financial risk. However, the decrease in the ratio in the latter years suggests a potential adjustment in the company's capital structure or debt management strategy.
Overall, the trend in the financial leverage ratio of Now Inc points to a moderate level of leverage, with fluctuations indicating changes in the company's debt levels and financial decisions over time.
Peer comparison
Dec 31, 2024