Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

ServiceNow Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	1,231)	824)	777)	241)	157)
Developed technology	516)	434)	415)	226)	178)
Patents	72)	72)	69)	65)	68)
Other	11)	15)	14)	4)	4)
Intangible assets, gross	599)	521)	498)	295)	249)
Accumulated amortization	(375)	(289)	(211)	(141)	(105)
Intangible assets, net	224)	232)	287)	153)	144)
Goodwill and intangible assets	1,455)	1,056)	1,064)	394)	301)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	ServiceNow Inc. goodwill increased from 2021 to 2022 and from 2022 to 2023.
Intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	ServiceNow Inc. intangible assets, net decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	ServiceNow Inc. goodwill and intangible assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

ServiceNow Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	17,387)	13,299)	10,798)	8,715)	6,022)
Less: Goodwill	1,231)	824)	777)	241)	157)
Total assets (adjusted)	16,156)	12,475)	10,021)	8,474)	5,866)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	7,628)	5,032)	3,695)	2,834)	2,128)
Less: Goodwill	1,231)	824)	777)	241)	157)
Stockholders’ equity (adjusted)	6,397)	4,208)	2,918)	2,594)	1,971)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

ServiceNow Inc., Financial Data: Reported vs. Adjusted

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ServiceNow Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total Asset Turnover
Reported total asset turnover	0.52	0.54	0.55	0.52	0.57
Adjusted total asset turnover	0.56	0.58	0.59	0.53	0.59
Financial Leverage
Reported financial leverage	2.28	2.64	2.92	3.07	2.83
Adjusted financial leverage	2.53	2.96	3.43	3.27	2.98
Return on Equity (ROE)
Reported ROE	22.69%	6.46%	6.22%	4.18%	29.45%
Adjusted ROE	27.06%	7.72%	7.88%	4.57%	31.79%
Return on Assets (ROA)
Reported ROA	9.96%	2.44%	2.13%	1.36%	10.41%
Adjusted ROA	10.71%	2.61%	2.30%	1.40%	10.68%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	ServiceNow Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	ServiceNow Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	ServiceNow Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	ServiceNow Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

ServiceNow Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues	8,971)	7,245)	5,896)	4,519)	3,460)
Total assets	17,387)	13,299)	10,798)	8,715)	6,022)
Activity Ratio
Total asset turnover¹	0.52	0.54	0.55	0.52	0.57
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	8,971)	7,245)	5,896)	4,519)	3,460)
Adjusted total assets	16,156)	12,475)	10,021)	8,474)	5,866)
Activity Ratio
Adjusted total asset turnover²	0.56	0.58	0.59	0.53	0.59

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 8,971 ÷ 17,387 = 0.52

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 8,971 ÷ 16,156 = 0.56

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	ServiceNow Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	17,387)	13,299)	10,798)	8,715)	6,022)
Stockholders’ equity	7,628)	5,032)	3,695)	2,834)	2,128)
Solvency Ratio
Financial leverage¹	2.28	2.64	2.92	3.07	2.83
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	16,156)	12,475)	10,021)	8,474)	5,866)
Adjusted stockholders’ equity	6,397)	4,208)	2,918)	2,594)	1,971)
Solvency Ratio
Adjusted financial leverage²	2.53	2.96	3.43	3.27	2.98

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 17,387 ÷ 7,628 = 2.28

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 16,156 ÷ 6,397 = 2.53

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	ServiceNow Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	1,731)	325)	230)	119)	627)
Stockholders’ equity	7,628)	5,032)	3,695)	2,834)	2,128)
Profitability Ratio
ROE¹	22.69%	6.46%	6.22%	4.18%	29.45%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	1,731)	325)	230)	119)	627)
Adjusted stockholders’ equity	6,397)	4,208)	2,918)	2,594)	1,971)
Profitability Ratio
Adjusted ROE²	27.06%	7.72%	7.88%	4.57%	31.79%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,731 ÷ 7,628 = 22.69%

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 1,731 ÷ 6,397 = 27.06%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	ServiceNow Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	1,731)	325)	230)	119)	627)
Total assets	17,387)	13,299)	10,798)	8,715)	6,022)
Profitability Ratio
ROA¹	9.96%	2.44%	2.13%	1.36%	10.41%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	1,731)	325)	230)	119)	627)
Adjusted total assets	16,156)	12,475)	10,021)	8,474)	5,866)
Profitability Ratio
Adjusted ROA²	10.71%	2.61%	2.30%	1.40%	10.68%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,731 ÷ 17,387 = 9.96%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 1,731 ÷ 16,156 = 10.71%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	ServiceNow Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

ServiceNow Inc. (NYSE:NOW)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

ServiceNow Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

ServiceNow Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)