Now Inc (DNOW)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 | 0.07 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.05 | 0.09 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.05 | 0.10 |
| Financial leverage ratio | 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 | 1.39 | 1.41 | 1.46 | 1.52 |
NOW Inc has maintained a consistent solvency position over the past eight quarters, as indicated by the flat trend in its debt ratios. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00, suggesting that the company has not relied on significant debt financing to support its operations during this period.
However, the financial leverage ratio has shown some fluctuation, ranging from 1.44 to 1.62. This ratio peaked in Q2 2023 before decreasing in subsequent quarters. A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. The downward trend in the financial leverage ratio suggests a decrease in the company's dependence on debt to finance its operations and potentially an improvement in its financial health.
Overall, based on the solvency ratios provided, NOW Inc appears to have a conservative debt structure and has managed its leverage effectively to maintain a solid financial position.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 140.00 | 28.60 | 30.00 | 5.50 | 3.74 | 3.32 | 2.23 | 4.00 | — | — | — | — | — | — | -485.00 | -219.50 | -20.75 | 12.67 | 12.57 | 11.12 |
As the interest coverage ratio data is not provided in the table for NOW Inc for any of the quarters mentioned, we are unable to conduct a detailed analysis of the company's ability to cover its interest expenses. The interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest payments on outstanding debt from its operating income.
A high interest coverage ratio usually reflects the company's strong ability to meet its interest obligations from its earnings. Conversely, a low interest coverage ratio may indicate potential financial distress and difficulty in meeting interest payments.
Without the specific data for the interest coverage ratio, we are unable to assess the company's financial health and its ability to manage its debt obligations. It is recommended to provide the interest coverage ratio figures for a more thorough analysis of NOW Inc's financial performance in terms of managing its interest expenses.