Now Inc (DNOW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,529,000 | 1,320,000 | 1,104,000 | 1,008,000 | 1,591,000 |
| Total stockholders’ equity | US$ in thousands | 1,060,000 | 842,000 | 711,000 | 699,000 | 1,144,000 |
| Financial leverage ratio | 1.44 | 1.57 | 1.55 | 1.44 | 1.39 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,529,000K ÷ $1,060,000K
= 1.44
The financial leverage ratio for NOW Inc has shown some fluctuations over the past five years. The ratio decreased from 1.39 in 2019 to 1.44 in 2020, indicating a slight increase in leverage. It then increased further to 1.55 in 2021 and 1.57 in 2022, suggesting a higher level of financial leverage. However, by the end of 2023, the ratio slightly decreased to 1.44.
Overall, the trend in the financial leverage ratio for NOW Inc demonstrates some variability, with a general upward trend in recent years, potentially indicating an increase in the company's reliance on debt financing to support its operations and growth initiatives. As financial leverage can have both positive and negative implications for a company, further analysis of the firm's financial health and risk management strategies would be necessary to better understand the implications of these changes in leverage ratios.
Peer comparison
Dec 31, 2023