Stock Analysis on Net
Stock Analysis on Net

ServiceNow Inc. (NYSE:NOW)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

ServiceNow Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Accounts payable 0.78 0.33 0.72 2.06 0.82
Accrued payroll 3.18 3.43 3.74 3.68 4.11
Taxes payable 0.75 0.79 0.71 0.82 0.94
Other employee-related liabilities 0.84 0.96 0.96 1.13 1.12
Other 2.19 1.53 2.44 1.70 1.70
Accrued expenses and other current liabilities 6.96% 6.72% 7.85% 7.33% 7.87%
Current portion of deferred revenue 31.93 33.45 33.27 35.04 35.53
Current portion of operating lease liabilities 0.43 0.50 0.51 0.72 0.76
Current debt, net 0.00 0.00 0.00 0.00 0.85
Current liabilities 40.11% 41.00% 42.36% 45.15% 45.83%
Deferred revenue, less current portion 0.46 0.47 0.47 0.53 0.58
Operating lease liabilities, less current portion 3.07 3.37 4.07 4.89 5.15
Long-term debt, net, less current portion 5.73 7.31 8.56 11.17 13.74
Other long-term liabilities 0.84 0.71 0.68 0.42 0.47
Long-term liabilities 10.10% 11.85% 13.77% 17.01% 19.95%
Total liabilities 50.21% 52.86% 56.13% 62.16% 65.78%
Preferred stock, $0.001 par value; no shares issued or outstanding 0.00 0.00 0.00 0.00 0.00
Common stock, $0.001 par value 0.00 0.00 0.00 0.00 0.00
Treasury stock, at cost -11.69 -5.98 -3.08 0.00 0.00
Additional paid-in capital 41.27 36.31 35.26 36.06 33.94
Accumulated other comprehensive income (loss) 0.07 -0.33 -0.21 -0.77 0.31
Retained earnings (accumulated deficit) 20.13 17.14 11.90 2.54 -0.04
Stockholders’ equity 49.79% 47.14% 43.87% 37.84% 34.22%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The composition of liabilities and stockholders’ equity exhibits notable shifts over the five-year period. A consistent decline in the proportion of total liabilities is observed, decreasing from 65.78% in 2021 to 50.21% in 2025. This decrease is accompanied by a corresponding increase in the proportion of stockholders’ equity, rising from 34.22% to 49.79% over the same timeframe. Within both liabilities and equity sections, several specific items demonstrate significant trends.

Current Liabilities
Current liabilities, representing the largest portion of total liabilities, demonstrate a steady decrease from 45.83% in 2021 to 40.11% in 2025. The most substantial component of current liabilities, the current portion of deferred revenue, also follows a declining trend, moving from 35.53% in 2021 to 31.93% in 2025. A reduction is also seen in the current portion of operating lease liabilities, decreasing from 0.76% to 0.43%.
Long-Term Liabilities
Long-term liabilities show a more pronounced decrease than current liabilities. The percentage of long-term liabilities to total liabilities and stockholders’ equity declines from 19.95% in 2021 to 10.10% in 2025. This reduction is primarily driven by a decrease in long-term debt, net, less current portion, which falls from 13.74% to 5.73% over the period. Operating lease liabilities, less current portion, also contribute to this decline, decreasing from 5.15% to 3.07%.
Stockholders’ Equity Components
Significant changes are observed within stockholders’ equity. Additional paid-in capital increases from 33.94% in 2021 to 41.27% in 2025, indicating potential equity issuances or stock-based compensation. Retained earnings experience substantial growth, moving from -0.04% in 2021 to 20.13% in 2025, suggesting increasing profitability. Treasury stock is initially absent but becomes a negative component, growing from -3.08% in 2023 to -11.69% in 2025, which implies share repurchases. Accumulated other comprehensive income (loss) fluctuates, starting at 0.31%, becoming negative (-0.77%) in 2022, and then stabilizing near zero.
Other Liabilities & Equity
Several smaller liability accounts exhibit relatively stable percentages, with minor fluctuations. Accounts payable, taxes payable, and other employee-related liabilities remain within a narrow range throughout the period. The "Other" liability category shows some volatility, increasing to 2.44% in 2023 before decreasing to 2.19% in 2025. Common stock remains a negligible percentage of the total, becoming present only in 2025.

Overall, the observed trends suggest a strengthening financial position, characterized by a decreasing reliance on debt financing and a growing equity base. The increase in retained earnings is a positive indicator of profitability, while the share repurchase program, as evidenced by the growing treasury stock balance, suggests confidence in the company’s future prospects.

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