Now Inc (DNOW)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,621,000 | 1,587,000 | 1,563,000 | 1,594,000 | 1,529,000 | 1,376,000 | 1,420,000 | 1,329,000 | 1,320,000 | 1,282,000 | 1,202,000 | 1,162,000 | 1,104,000 | 1,104,000 | 1,070,000 | 1,026,000 | 1,008,000 | 1,039,000 | 1,069,000 | 1,196,000 |
| Total stockholders’ equity | US$ in thousands | 1,128,000 | 1,114,000 | 1,095,000 | 1,076,000 | 1,060,000 | 904,000 | 874,000 | 841,000 | 842,000 | 804,000 | 777,000 | 746,000 | 712,000 | 699,000 | 696,000 | 692,000 | 699,000 | 731,000 | 747,000 | 768,000 |
| Financial leverage ratio | 1.44 | 1.42 | 1.43 | 1.48 | 1.44 | 1.52 | 1.62 | 1.58 | 1.57 | 1.59 | 1.55 | 1.56 | 1.55 | 1.58 | 1.54 | 1.48 | 1.44 | 1.42 | 1.43 | 1.56 |
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 some fluctuation over the past few years. The ratio started at 1.56 as of March 31, 2020, decreased to 1.42 by September 30, 2020, and then rose again to 1.58 by September 30, 2021. This indicates that the company's reliance on debt relative to its equity was changing during this period.
Thereafter, the ratio fluctuated within a relatively narrow range, hovering between 1.42 and 1.62. Notably, the ratio peaked at 1.62 as of June 30, 2023, which may suggest a higher proportion of debt in the company's capital structure at that point in time. However, by December 31, 2024, the ratio had decreased to 1.44, which is closer to the lower end of the range seen in recent quarters.
Overall, the trend in Now Inc's financial leverage ratio indicates that the company has been managing its debt levels and equity effectively, with some variation in the degree of leverage employed throughout the reporting period. Further analysis would be needed to determine the implications of these fluctuations for the company's financial health and risk profile.
Peer comparison
Dec 31, 2024