ServiceNow Inc. (NYSE:NOW)

Total assets

The total assets have shown a consistent and substantial growth over the five-year period. Starting from 8,715 million US dollars at the end of 2020, there is an upward trajectory each year, reaching 20,383 million US dollars by the end of 2024. This reflects a more than doubling of total assets within this timeframe, indicating significant asset base expansion.

Adjusted total assets

Adjusted total assets follow a similar increasing trend, rising from 8,042 million US dollars in 2020 to 18,998 million US dollars in 2024. Although slightly lower than total assets at each year-end, the pattern of steady growth remains consistent, signaling an overall strengthening of the adjusted asset base.

Trend Analysis

Both total and adjusted assets demonstrate a continuous upward movement year over year without any declines or stagnation. The growth between the years is relatively stable, with the most significant increases observable towards the later years, especially from 2022 to 2024, suggesting accelerated asset accumulation or acquisition activities during this phase.

Insights

The consistent increase in both total and adjusted assets suggests improving financial strength and potential investment in operational capabilities or business expansion. The proximity in values between total and adjusted assets indicates limited adjustments, implying that the asset quality or valuation adjustments have remained stable over the period assessed.

Current liabilities

The current liabilities have displayed a consistent increasing trend over the five-year period. Starting at 3,737 million US dollars in 2020, the value rose to 4,949 million in 2021, marking a significant increase. This upward trajectory continued through 2022 and 2023, reaching 6,005 million and 7,365 million respectively. By 2024, current liabilities reached the highest point at 8,358 million US dollars. The steady growth suggests either an expansion in short-term obligations or an increase in operational scale requiring more current liabilities.

Adjusted current liabilities

Adjusted current liabilities also followed an upward trend during the same timeframe, increasing from 775 million US dollars in 2020 to a peak of 1,580 million in 2023. However, in 2024, there was a slight decline to 1,539 million US dollars. This pattern suggests an overall increase in adjusted liabilities, yet with a minor reduction observed in the most recent year. Such an adjustment might reflect changes in accounting policies, reclassification of liabilities, or strategic management of short-term obligations.

Comparative analysis

Both current and adjusted current liabilities show growth, but current liabilities increased at a higher magnitude compared to adjusted current liabilities. The difference between current and adjusted current liabilities widened over the years, indicating that factors excluded from the adjusted figures have contributed increasingly to the total current liabilities. The slight decrease in adjusted liabilities in 2024, contrasted with the continued rise in overall current liabilities, implies a divergence in components included in the adjustments versus total liabilities.

Total Liabilities

The total liabilities exhibit a clear upward trend over the period analyzed, increasing steadily each year. Starting from 5,881 million US dollars at the end of 2020, the figure rose to 7,103 million in 2021 and continued its ascent to 8,267 million in 2022. The growth persisted with liabilities reaching 9,759 million in 2023 and further climbing to 10,774 million by the end of 2024. This consistent increase suggests an expanding scale of obligations or financing activities over time.

Adjusted Total Liabilities

The adjusted total liabilities also show an increasing trend from 2020 through 2023, beginning at 2,865 million US dollars and rising incrementally each year to reach 3,853 million by the end of 2023. However, in 2024, there is a slight decline to 3,814 million, indicating a possible stabilization or minor reduction in adjusted liabilities after several years of growth. Despite this minor decrease, the level of adjusted liabilities remains significantly higher than the 2020 baseline.

Comparative Insights

While both total liabilities and adjusted total liabilities show upward trends, total liabilities increased at a relatively higher rate over the five-year span. The nearly continuous growth in total liabilities contrasts with the more moderate increase in adjusted total liabilities, which experienced a small decrease in the final year. This divergence could suggest different accounting treatments or classifications affecting the adjusted figures, or a specific management strategy addressing certain liabilities. Overall, the company appears to be expanding its obligations, but adjusted figures indicate some level of control or moderation in a subset of liabilities.

Stockholders’ Equity

The stockholders’ equity shows a consistent upward trend from 2020 to 2024. Starting at 2,834 million USD in 2020, it increased to 3,695 million USD in 2021, then to 5,032 million USD in 2022. The growth accelerated further with values reaching 7,628 million USD in 2023 and 9,609 million USD in 2024. This indicates strong and sustained growth in the company's net assets over the five-year period.

Adjusted Stockholders’ Equity

The adjusted stockholders’ equity also exhibits a continuous and substantial increase throughout the entire period. Beginning at 5,176 million USD in 2020, it rose to 6,911 million USD in 2021 and further to 9,136 million USD in 2022. A notable increase follows with 12,026 million USD in 2023 and 15,184 million USD in 2024. The adjusted figures are consistently higher than the reported stockholders’ equity, implying adjustments that enhance the equity value, such as revaluation or accounting adjustments. The steady increase suggests positive development in the adjusted underlying financial position.

Overall Analysis

Both the stockholders’ equity and the adjusted stockholders’ equity reflect strong equity growth over five years, with the adjusted equity figures indicating a consistently more favorable position. The growth rates suggest the company has been retaining earnings, raising capital, or enhancing shareholder value effectively during this time frame. The increasing equity base supports potential for increased financial stability and capacity for future investments or expansion.

Total Reported Debt

The total reported debt shows a gradual decline from 1,640 million USD in 2020 to 1,486 million USD in 2022, followed by stabilization around 1,488-1,489 million USD through 2023 and 2024. This indicates a slight reduction in debt levels initially, with the company maintaining a relatively stable debt position in later years.

Stockholders’ Equity

Stockholders' equity exhibits a consistent and strong upward trend, increasing from 2,834 million USD in 2020 to 9,609 million USD in 2024. The growth accelerates notably after 2021, reflecting enhanced retained earnings, capital injections, or asset revaluations contributing to a stronger equity base over the period analyzed.

Total Reported Capital

Total reported capital, which combines debt and equity, rises persistently from 4,475 million USD in 2020 to 11,098 million USD in 2024. This increase is driven primarily by equity growth as the debt level remains relatively stable, indicating an overall expansion in the company’s capitalization.

Adjusted Total Debt

Adjusted total debt moves upward slightly, from 2,135 million USD in 2020 to a peak of 2,284 million USD in 2023, before marginally decreasing to 2,278 million USD in 2024. This trend contrasts with the total reported debt and suggests that the adjusted debt metric includes additional liabilities or factors increasing the debt load over time.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity shows a robust increase, growing from 5,176 million USD in 2020 to 15,184 million USD in 2024. This adjusted measure further emphasizes the company's strengthening financial position and capital base over the period, with a sizeable increase especially after 2021.

Adjusted Total Capital

Adjusted total capital trends upward significantly, moving from 7,312 million USD in 2020 to 17,462 million USD in 2024. This growth reflects both the rising adjusted equity and adjusted debt, with equity growth outpacing debt increases, underlining the expansion of the company’s financial resources and capital structure.

The financial data indicates a consistent upward trajectory in both reported revenues and adjusted revenues over the five-year period.

Revenues

There is a clear and steady increase in revenues from 4,519 million USD at the end of 2020 to 10,984 million USD by the end of 2024. This represents more than a doubling of revenues in this timeframe, suggesting strong sales growth and expanding market presence.

Adjusted Revenues

Adjusted revenues also follow a similar increasing pattern, starting at 5,302 million USD in 2020 and rising to 12,032 million USD in 2024. The consistent increase in adjusted figures, which likely exclude certain irregular items, hints at a stable and scalable underlying business model.

Growth Trends

The year-on-year increases are pronounced, with 2024 showing the highest revenue figures in the observed period. The magnitude of growth across both metrics indicates effective business operations, successful execution of growth strategies, and possibly beneficial market conditions throughout these years.

The financial data reveals significant variations in the reported and adjusted net income figures over the analyzed five-year period. Both metrics exhibit upward trends overall, though the magnitudes and patterns differ notably.

Net Income

The net income shows a consistent increase from 119 million US dollars in 2020 to 325 million in 2022, indicating steady growth over these initial years. However, a marked surge occurs in 2023, with net income reaching 1,731 million, reflecting a nearly fivefold increase from the previous year. This substantial jump suggests a one-time event or a significant positive operational shift. Subsequently, in 2024, net income declines to 1,425 million, which, while lower than 2023, remains substantially above the earlier years, indicating sustained higher profitability despite the drop.

Adjusted Net Income

Adjusted net income also increases consistently, starting at 947 million in 2020 and growing steadily to 1,035 million in 2022. A sharp increase occurs in 2023, almost doubling to 2,075 million, followed by a further increase to 2,540 million in 2024. Unlike the reported net income, the adjusted net income maintains an upward trajectory through the last two periods, suggesting that adjustments (likely for non-recurring items or accounting anomalies) smooth out the volatility seen in the net income figures.

Overall, the data indicates robust growth in profitability, particularly from 2022 onward. The divergence between net income and adjusted net income trends from 2023 to 2024 implies that adjusted figures might better reflect ongoing operational performance by excluding irregular factors impacting net income. The substantial increases in both measures highlight enhanced earnings capacity and potentially improved business conditions or strategic successes during these years.