ServiceNow Inc. (NYSE:NOW)

The analysis of the quarterly financial data over the periods from March 31, 2020, through March 31, 2025, reveals several key trends and patterns in asset composition and distribution.

Cash and cash equivalents

Representing a fluctuating proportion of total assets, this category shows a peak at 20.64% in March 31, 2021, followed by a general decline to around 7.37% in September 30, 2023, before recovering moderately to 16.06% by March 31, 2025. The volatility suggests shifting liquidity management strategies or changes in operating cash flow requirements.

Short-term investments

This category exhibits moderate fluctuations, peaking at 24.38% in September 30, 2022, and maintaining generally above 15% thereafter, indicating a strategic allocation towards liquid investments with a short horizon consistent with maintaining operational flexibility.

Accounts receivable, net

Accounts receivable as a percentage of total assets fluctuates, with troughs around 6.48% in March 31, 2025, and peaks near 12.97% in December 31, 2022. These changes point to variability in credit sales or collection efficiency over time, with occasional increases reflecting potential sales growth or delayed collections.

Current portion of deferred commissions

This item remains relatively stable around 2.5% to 2.9%, indicating consistent recognition of deferred sales commissions within current assets without major shifts in sales-related commission accounting or timing.

Prepaid expenses and other current assets

There is a gradual increase in this category, growing from 2.41% in March 31, 2020, to 3.72% in March 31, 2025, suggesting rising prepaid costs or other short-term asset components, possibly reflecting changes in vendor terms or expense management.

Current assets

Overall current assets as a percent of total assets display a decline from a peak of approximately 51.89% in December 31, 2020, to a lower threshold around 40%-45% in subsequent years, indicating a shift toward more long-term or less liquid asset allocations.

Deferred commissions, less current portion

This account remains mostly stable, fluctuating mildly around 4.8% to 5.9%, which points to consistent long-term deferral of commissions associated with revenue recognition policies.

Long-term investments

Showing some variability, the long-term investments percentage ranges between approximately 11.9% and 20.9%, with a general upward trend starting around 2022 through 2025. This potentially reflects an increased strategic focus on longer-duration investment assets.

Property and equipment, net

The net value of property and equipment displays relative stability in the 7% to 9.5% range, with gradual growth toward the later years, signaling steady investment or capital expenditure supporting operations.

Operating lease right-of-use assets

This asset class shows a clear declining trend, from 7.5% in early 2020 down to about 3.4%-3.9% by late 2024 and early 2025, reflective of evolving lease accounting treatment or reduction in operating leases.

Intangible assets, net

Intangible assets consistently decline as a percent of total assets, from 2.76% in early 2020 to approximately 1.1% in early 2025, suggesting amortization effects or disposals exceeding new acquisitions.

Goodwill

Goodwill experiences significant variability, notably rising sharply from 2.76% in late 2020 to 8.63% by mid-2021, then fluctuating around 6% to 7% subsequently. This pattern indicates acquisition activity during 2021, with stabilization of goodwill thereafter.

Deferred tax assets

There is a notable decrease from 9.46% to about 4.7% by late 2022, followed by an abnormal spike to 10.39% in mid-2023 and gradual decline thereafter to around 6.5% by early 2025. These movements may reflect changing tax positions, valuation allowances, or tax planning outcomes.

Other assets

Other assets increase steadily, from around 1.19% in early 2020 to approximately 3.64% by early 2025, indicating growth in miscellaneous non-current asset categories.

Long-term assets

The proportion of long-term assets to total assets fluctuates but exhibits a mild increasing trend through the analyzed timeframe, moving from below 50% initially to highs near 59.94% in September 2023 before settling slightly lower around 55% to 56%. This trend aligns with a portfolio increasingly weighted toward longer-term or less liquid assets.

Overall, the data reflect a shift toward maintaining a balanced asset portfolio with moderately increasing focus on long-term investments and stable property assets, accompanied by a declining trend in lease assets and intangible balances. Liquidity components such as cash and short-term investments show cyclical patterns potentially tied to operational cash flows and investment cycles. The fluctuations in goodwill and deferred tax assets highlight significant events impacting balance sheet composition, including acquisitions and tax strategy adjustments.