Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
ServiceNow Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Liabilities Trends
- The proportion of current liabilities as a percentage of total liabilities and stockholders’ equity fluctuates over the examined periods, ranging from a low near 36% to a high above 45%. The current portion of deferred revenue typically represents the largest component of current liabilities, consistently around 30%-35%, showing a generally stable but slightly decreasing trend over time. Accounts payable fluctuate considerably, showing peaks and troughs but generally remaining below 2.5%. Accrued expenses and other current liabilities remain relatively stable in the mid-single digits, between approximately 5% and 7.9%. Current portion of operating lease liabilities shows a gradual declining trend from about 1% to below 0.5%. Current debt, net is sporadically present and small, suggesting limited reliance on short-term borrowing.
- Long-Term Liabilities
- Long-term liabilities exhibit a declining trend over the periods with values starting near 28.5% at peak and gradually decreasing towards approximately 11%-12% by the end of the series. Specifically, long-term debt net of the current portion decreases steadily from over 22% down to around 7%. Operating lease liabilities less current portion also decline from slightly above 7% down to below 4%. Other long-term liabilities remain small and fairly constant, around 0.4% to 0.8%.
- Total Liabilities
- Total liabilities as a proportion of total liabilities and stockholders’ equity decrease from above 67% in early 2020 to a range near 49.6%-53% in the most recent quarters, indicating a gradual reduction in leverage or relative liabilities weight compared to equity over time. This suggests strengthening of the company’s balance sheet or lower relative liabilities.
- Stockholders’ Equity Composition
- Stockholders’ equity grows over time as a percentage of total liabilities and stockholders’ equity, starting near 32.5% and increasing to levels around 50%. Retained earnings show consistent and substantial improvement, moving from negative values in early 2020 into steadily rising positive territory reaching nearly 19%, indicating improved profitability and earnings retention. Additional paid-in capital remains generally stable between 33% and 41%, reflecting consistent equity contributions or valuation adjustments. Treasury stock, reported only in later periods, shows increasing negative values (up to around -7%), indicating repurchases or treasury holdings increasing over time. Accumulated other comprehensive income/loss fluctuates slightly, generally remaining a small negative factor.
- Overall Capital Structure
- The company's capital structure shows a trend towards lower leverage with total liabilities decreasing as a portion of total capital while stockholders’ equity grows stronger. This shift aligns with growing retained earnings and stable paid-in capital, suggesting a maturing financial position with less reliance on debt financing. The company's operating lease liabilities are diminishing, reflecting possibly changes in lease strategy or obligation structure over the analyzed periods.