Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Accounts payable	68)	126)	274)	89)	34)
Accrued payroll	700)	650)	490)	444)	372)
Taxes payable	162)	123)	109)	101)	58)
Other employee-related liabilities	196)	167)	150)	121)	92)
Other	311)	425)	226)	184)	146)
Accrued expenses and other current liabilities	1,369)	1,365)	975)	850)	668)
Current portion of deferred revenue	6,819)	5,785)	4,660)	3,836)	2,963)
Current portion of operating lease liabilities	102)	89)	96)	82)	72)
Current debt, net	—)	—)	—)	92)	—)
Current liabilities	8,358)	7,365)	6,005)	4,949)	3,737)
Deferred revenue, less current portion	95)	81)	70)	63)	45)
Operating lease liabilities, less current portion	687)	707)	650)	556)	423)
Long-term debt, net, less current portion	1,489)	1,488)	1,486)	1,484)	1,640)
Other long-term liabilities	145)	118)	56)	51)	35)
Long-term liabilities	2,416)	2,394)	2,262)	2,154)	2,143)
Total liabilities	10,774)	9,759)	8,267)	7,103)	5,881)
Preferred stock, $0.001 par value; no shares issued or outstanding	—)	—)	—)	—)	—)
Common stock, $0.001 par value	—)	—)	—)	—)	—)
Treasury stock, at cost	(1,219)	(535)	—)	—)	—)
Additional paid-in capital	7,402)	6,131)	4,796)	3,665)	2,974)
Accumulated other comprehensive income (loss)	(68)	(37)	(102)	34)	94)
Retained earnings (accumulated deficit)	3,494)	2,069)	338)	(4)	(234)
Stockholders’ equity	9,609)	7,628)	5,032)	3,695)	2,834)
Total liabilities and stockholders’ equity	20,383)	17,387)	13,299)	10,798)	8,715)

Based on: 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), 10-K (reporting date: 2020-12-31).

The financial data reveals several notable trends across the observed periods.

Current Liabilities: Overall, current liabilities increased significantly from US$3,737 million in 2020 to US$8,358 million in 2024. Key contributors to this rise include accrued expenses and other current liabilities, which grew from US$668 million to US$1,369 million, and the current portion of deferred revenue, which more than doubled from US$2,963 million to US$6,819 million. Accounts payable showed volatility, rising sharply in 2022 and then declining over the following years.
Long-term Liabilities: Long-term liabilities exhibited a steady upward trend, increasing from US$2,143 million in 2020 to US$2,416 million in 2024. The operating lease liabilities rose consistently until 2023, followed by a slight decrease in 2024. Long-term debt remained relatively stable throughout the period, hovering near US$1,485 million.
Total Liabilities: Total liabilities mirrored the increases seen in both current and long-term liabilities, ascending from US$5,881 million in 2020 to US$10,774 million in 2024.
Stockholders’ Equity: Stockholders' equity experienced substantial growth over the period, increasing from US$2,834 million in 2020 to US$9,609 million in 2024. This growth was driven primarily by increases in additional paid-in capital (from US$2,974 million to US$7,402 million) and retained earnings, which shifted from a negative balance of US$234 million to a positive US$3,494 million. Treasury stock showed significant increases in cost starting from 2023, indicating buybacks or other equity reductions.
Comprehensive Income: Accumulated other comprehensive income (loss) declined over the period, moving from a positive US$94 million in 2020 to a negative US$68 million in 2024. This indicates adverse effects from items recorded outside of net income, such as foreign currency translation adjustments or unrealized gains and losses.
Overall Financial Position: The total liabilities and stockholders’ equity combined grew robustly from US$8,715 million to US$20,383 million, reflecting both increased obligations and equity funding. The continued growth in deferred revenue suggests a strong or expanding customer base with prepaid services, whereas the increases in accrued payroll and employee-related liabilities imply growth in personnel or rising compensation costs.

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ServiceNow Inc. (NYSE:NOW)

Balance Sheet: Liabilities and Stockholders’ Equity