Stock Analysis on Net

ServiceNow Inc. (NYSE:NOW)

$24.99

Return on Assets (ROA)
since 2012

Microsoft Excel

Calculation

ServiceNow Inc., ROA, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 US$ in millions

Net Income (Loss)
The net income figures demonstrate an initial period of losses from 2012 through 2018, with the largest loss occurring in 2016 at -452 million US dollars. Losses narrowed significantly starting in 2017 and shifted to positive territory in 2019, with a notable income of 627 million US dollars. From 2019 onwards, the company consistently reported profits, reaching a peak of 1,731 million US dollars in 2023, followed by a slight decline to 1,425 million US dollars in 2024.
Total Assets
There is a clear upward trend in total assets over the entire period. Starting at 478 million US dollars in 2012, total assets steadily increased almost every year, with particularly strong growth observed from 2016 onwards. By 2024, total assets reached 20,383 million US dollars, reflecting significant expansion and asset accumulation.
Return on Assets (ROA)
ROA values align with the net income trend, showing negative returns from 2012 through 2018, with the lowest point of -22.22% in 2016. The ratio improved markedly starting in 2019, transitioning into positive values that indicate effective use of assets to generate profit. ROA peaked at 10.41% in 2019, then moderated in subsequent years, but remained positive, registering 6.99% in 2024, which indicates ongoing profitability relative to asset base.
Overall Observations
The data reflect a company in a growth and turnaround phase. The initial years were characterized by losses and negative returns on assets, alongside a growing but relatively small asset base. Post-2018, the company demonstrates continuous profitability and stronger asset utilization, coinciding with substantial asset growth. This suggests successful operational improvements and scaling over time. The peak net income in 2023 followed by a slight decline in 2024 warrants attention to maintain the trajectory of profitability.

Comparison to Competitors

ServiceNow Inc., ROA, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Sector (Software & Services)

ServiceNow Inc., ROA, long-term trends, comparison to sector (software & services)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Industry (Information Technology)

ServiceNow Inc., ROA, long-term trends, comparison to industry (information technology)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).