Cash Flow Statement
The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
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- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2012
- Current Ratio since 2012
- Price to Operating Profit (P/OP) since 2012
- Price to Book Value (P/BV) since 2012
- Price to Sales (P/S) since 2012
- Aggregate Accruals
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ServiceNow Inc., consolidated cash flow statement
US$ in millions
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 company demonstrates a significant increase in net income over the observed period, rising from US$230 million in 2021 to US$1,748 million in 2025. This growth is accompanied by fluctuations in other income statement items and substantial shifts in cash flow patterns.
- Operating Activities
- Net cash provided by operating activities exhibits a consistent upward trend, increasing from US$2,191 million in 2021 to US$5,444 million in 2025. This growth is largely driven by the increasing net income and adjustments to reconcile net income, which nearly doubled over the period. Accounts receivable, deferred commissions, and prepaid expenses consistently represent cash outflows, though their magnitudes fluctuate annually. Deferred revenue consistently provides a cash inflow, increasing from US$960 million to US$1,179 million. Changes in operating assets and liabilities show some volatility, with a net outflow in 2023 and 2024, but a return to inflow in 2025.
- Investing Activities
- Net cash used in investing activities remains consistently negative throughout the period, indicating ongoing investments. Purchases of marketable securities represent the largest cash outflow, decreasing from US$2,485 million in 2021 to US$2,814 million in 2025, but still substantial. Business combinations also represent significant cash outflows, particularly in 2021 and 2025. Sales and maturities of marketable securities provide a consistent inflow, increasing over time. Purchases of property and equipment and strategic investments also contribute to cash outflows, with strategic investments increasing significantly in 2025.
- Financing Activities
- Net cash used in financing activities is consistently negative, indicating a reliance on external funding or returns of capital to shareholders. Repurchases of common stock become a significant outflow in 2023 and 2024, increasing substantially to US$1,840 million in 2025. Taxes paid related to net share settlement of equity awards are a consistent and substantial outflow. Proceeds from employee stock plans provide a consistent inflow, increasing modestly over the period. Repayments of convertible senior notes decrease and then cease after 2022.
- Cash Position
- The company’s cash, cash equivalents, and restricted cash demonstrate a generally positive trend, increasing from US$1,679 million in 2021 to US$3,732 million in 2025, despite significant cash outflows from investing and financing activities. The net change in cash shows a decrease in 2022, but strong positive changes in subsequent years, culminating in a substantial increase in 2025.
- Non-Cash Items
- Stock-based compensation consistently represents a significant non-cash expense, increasing from US$1,131 million in 2021 to US$1,955 million in 2025. Depreciation and amortization also contribute significantly to non-cash adjustments, with a similar upward trend. Amortization of deferred commissions also increases over the period. Deferred income taxes show considerable volatility, with a large outflow in 2023 and inflows in other years.
Overall, the company exhibits strong operating cash flow generation and increasing profitability. Investment activities remain substantial, and financing activities are characterized by significant share repurchases and equity-related tax payments. The cash position strengthens over the period, indicating effective cash management despite considerable investment and shareholder returns.