ServiceNow Inc. (NYSE:NOW)

Total Asset Turnover

The reported total asset turnover shows minor fluctuations, increasing from 0.52 in 2020 to 0.55 in 2021, then slightly declining to 0.52 in 2023 before a modest recovery to 0.54 in 2024. The adjusted total asset turnover remains more stable, with a slight downward trend from 0.66 in 2020 to 0.63 in 2024. This suggests a relatively consistent efficiency in asset utilization over the observed periods, albeit with a marginal decline in adjusted figures.

Current Ratio

The reported current ratio declined from 1.21 in 2020 to 1.05 in 2021, and fluctuated modestly around this level through 2024, ending at 1.1. In contrast, the adjusted current ratio is significantly higher, ranging from 5.84 in 2020 down to 4.69 in 2021, then stabilizing around 4.9 before rising to 5.97 in 2024. This indicates a strong liquidity position when adjusted, with some variability but an overall increasing trend in the most recent year.

Debt to Equity

There is a clear decreasing trend in the reported debt to equity ratio, falling from 0.58 in 2020 steadily down to 0.15 in 2024. The adjusted debt to equity ratio shows a similar pattern, declining from 0.41 to 0.15 over the same period. This trend demonstrates a progressive reduction in leverage and greater reliance on equity financing, which typically reduces financial risk.

Debt to Capital

Both reported and adjusted debt to capital ratios exhibit a downward trend, with the reported ratio decreasing from 0.37 in 2020 to 0.13 in 2024 and the adjusted ratio moving from 0.29 to 0.13. This consistent decline aligns with the reduction in debt to equity, further emphasizing a conservative capital structure development.

Financial Leverage

The reported financial leverage ratio declines steadily from 3.07 in 2020 to 2.12 in 2024. Adjusted financial leverage also decreases from 1.55 to 1.25 in the same timeframe. These patterns suggest that the company is reducing its use of borrowed funds relative to equity, which could imply a more cautious approach to financing.

Net Profit Margin

The reported net profit margin shows substantial volatility, starting at 2.62% in 2020 and climbing to 19.3% in 2023 before declining to 12.97% in 2024. Adjusted net profit margin trends downward from 17.86% in 2020 to 12.82% in 2022, then rises sharply to above 20% in 2023 and 2024. This divergence between reported and adjusted figures indicates that the company experienced significant non-recurring items or adjustments affecting profitability, with an overall improvement in underlying profitability in the later years.

Return on Equity (ROE)

The reported ROE increases from 4.18% in 2020 to a peak of 22.69% in 2023 before dropping to 14.83% in 2024. Adjusted ROE demonstrates a different trajectory, declining from 18.29% in 2020 to 11.33% in 2022 and then recovering to about 17% in the final years. This pattern indicates fluctuations in shareholder returns, influenced by adjustments that moderate the peaks seen in reported results.

Return on Assets (ROA)

Reported ROA rises from 1.36% in 2020 to 9.96% in 2023, then falls to 6.99% in 2024. The adjusted ROA declines from 11.78% in 2020 to a low of 8.17% in 2022 before rebounding to over 13% in 2023 and 2024. This suggests improvements in asset profitability after adjusting for certain factors, with some volatility evident in reported returns.

Revenue Growth

Revenues have demonstrated a consistent upward trend from 2020 through 2024, rising from $4,519 million to $10,984 million. This reflects strong growth with an almost two and a halffold increase over the five-year period, indicating robust business expansion and an increasing market demand for the company's products or services.

Total Assets

Total assets have also increased steadily, growing from $8,715 million in 2020 to $20,383 million in 2024. This nearly triples the asset base over five years, suggesting significant investment or acquisition activity, as well as expansion of the company’s operational capacity.

Reported Total Asset Turnover

The reported total asset turnover ratio remained relatively stable, fluctuating in a narrow range between 0.52 and 0.55 during the observed period. This stability indicates that increases in assets have been closely matched by proportional increases in revenues, maintaining consistent efficiency in utilizing the asset base to generate revenue.

Adjusted Revenues

Adjusted revenues, which may exclude certain non-recurring items or take into account other operational adjustments, show a similar upward trajectory from $5,302 million to $12,032 million. The adjusted revenue figures are consistently higher than the reported revenues, which suggests the adjustments add positively to the revenue base, highlighting strong core business performance.

Adjusted Total Assets

The adjusted total assets increased from $8,042 million in 2020 to $18,998 million in 2024. This trend resembles that of the reported total assets, with the adjusted metric slightly lower, potentially reflecting the exclusion of certain asset categories. The steady growth implies sustained capital investment supporting business expansion.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio shows a minor declining trend from 0.66 in 2020 to 0.63 in 2024. Despite the decline being slight, it may suggest a modest decrease in how efficiently the adjusted asset base is being used to generate revenues, possibly due to an increase in lower-yielding assets or investments in longer-term growth initiatives that have not yet fully translated into revenue.

The financial data displays a consistent growth trend in both current assets and current liabilities over the observed periods. Current assets have increased steadily from 4,522 million US dollars in 2020 to 9,187 million US dollars in 2024, indicating a broadening asset base and possibly enhanced liquidity or operational scale. Similarly, current liabilities have expanded from 3,737 million US dollars in 2020 to 8,358 million US dollars in 2024, reflecting higher short-term obligations which may relate to increased operational or financing activities.

The reported current ratio, which measures the ability to cover short-term liabilities with short-term assets, exhibits relative stability but with slight fluctuations. It began at 1.21 in 2020, dipped to a low of 1.05 in 2021, then showed minor improvements and settled at 1.10 by 2024. This suggests a consistent but modest margin of liquidity, maintaining the capacity to meet current liabilities without substantial change in short-term financial health.

When examining adjusted current liabilities, a notable downward adjustment is observed in their absolute value compared to reported current liabilities, ranging from 775 million in 2020 to 1,539 million in 2024. This adjustment likely excludes certain liabilities, potentially deferred revenue or other less immediate obligations, providing an alternative view of short-term debt.

Correspondingly, the adjusted current ratio remains significantly higher than the reported current ratio throughout the period, indicating a much stronger liquidity position when considering the adjusted liabilities. It started at an elevated level of 5.84 in 2020, declined to about 4.69 in 2021, and generally stabilized around a 4.9 to 5.97 range through 2024. The growth to 5.97 in 2024 suggests an improving liquidity buffer under this adjusted framework, reinforcing a robust capacity to cover adjusted short-term liabilities.

Overall, the data reveals growth in asset size and liabilities with maintained liquidity levels. The divergence between the reported and adjusted current ratios highlights the impact of liability classifications on liquidity assessment. The company appears to sustain a prudent liquidity position, especially when considering adjusted liabilities, despite increased absolute liabilities and assets over time.

Total Debt

The total debt showed a gradual decline from 1640 million USD in 2020 to 1489 million USD in 2024. This trend indicates a modest reduction in the company's debt burden over the five-year period, with the level stabilizing around 1488 to 1489 million USD in the last two years.

Stockholders’ Equity

Stockholders' equity demonstrated a consistent and significant increase throughout the period. Starting at 2834 million USD in 2020, it rose substantially each year, reaching 9609 million USD by 2024. This reflects a strong growth in the company's net worth and capital base.

Reported Debt to Equity Ratio

The reported debt to equity ratio exhibited a clear downward trend, decreasing from 0.58 in 2020 to 0.15 in 2024. This declining ratio suggests an improving capital structure, with equity growing at a faster pace than debt, leading to lower financial leverage and potentially reduced risk.

Adjusted Total Debt

The adjusted total debt increased slightly from 2135 million USD in 2020 to a peak of 2284 million USD in 2023, then marginally decreased to 2278 million USD in 2024. This pattern contrasts mildly with the reported total debt and may reflect adjustments for additional liabilities or off-balance-sheet items.

Adjusted Stockholders’ Equity

Adjusted stockholders' equity experienced a steady upward trajectory, growing from 5176 million USD in 2020 to 15184 million USD in 2024. This substantial increase aligns with the trend observed in reported equity, underscoring an improved financial position after accounting for adjustments.

Adjusted Debt to Equity Ratio

This ratio decreased from 0.41 in 2020 to 0.15 in 2024, mirroring the decline in the reported debt to equity ratio. The sustained reduction underlines enhanced financial stability and stronger equity capitalization after considering adjusted balances, indicating the company's efforts to strengthen its balance sheet over time.

Total Debt

The total debt shows a gradual decline from 1,640 million US dollars in 2020 to 1,486 million in 2022, stabilizing around 1,488 to 1,489 million in 2023 and 2024. This indicates a relatively stable debt level after an initial reduction over the first three years.

Total Capital

Total capital has demonstrated consistent growth throughout the period, rising from 4,475 million US dollars in 2020 to 11,098 million in 2024. This reflects an expanding capital base, more than doubling over the five-year span.

Reported Debt to Capital Ratio

The reported debt to capital ratio has experienced a downward trend, decreasing from 0.37 in 2020 to 0.13 in 2024. This suggests that the company's capital structure has become less reliant on debt financing over time, improving the leverage profile.

Adjusted Total Debt

Adjusted total debt shows a slight increase from 2,135 million in 2020 to a peak of 2,284 million in 2023, before marginally decreasing to 2,278 million in 2024. This contrasts with the reported total debt trend, implying adjustments account for additional debt-like obligations or off-balance sheet items.

Adjusted Total Capital

Adjusted total capital has increased significantly from 7,312 million in 2020 to 17,462 million in 2024, reflecting a broadening of capital measures beyond reported figures. This consistent growth indicates substantial capital expansion.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio has steadily decreased from 0.29 in 2020 to 0.13 in 2024, mirroring the trend observed in the reported ratio. This confirms an overall reduction in leverage when considering a more comprehensive measure of debt and capital.

Total Assets

Total assets exhibit a consistent upward trend over the five-year period, increasing from US$8,715 million in 2020 to US$20,383 million in 2024. This represents more than a twofold growth, indicating significant asset accumulation likely associated with business expansion or investment activities.

Stockholders’ Equity

Stockholders' equity also shows a strong increasing pattern, rising from US$2,834 million in 2020 to US$9,609 million in 2024. The growth in equity outpaces the growth in total assets, suggesting solid capital generation and retention, strengthening the company's financial base.

Reported Financial Leverage

Reported financial leverage steadily declines from 3.07 in 2020 to 2.12 in 2024. This downward trend implies a reduction in reliance on debt or other liabilities relative to equity, reflecting improving financial stability and a stronger equity cushion over time.

Adjusted Total Assets

Adjusted total assets follow a similar upward trajectory to reported total assets, growing from US$8,042 million in 2020 to US$18,998 million in 2024. This adjusted measurement maintains consistency in reflecting asset growth while accounting for any adjustments made.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increases from US$5,176 million in 2020 to US$15,184 million in 2024. The adjusted equity figures are notably higher than the reported equity values, indicating that adjustments enhance the equity base, potentially by recognizing previously unaccounted equity components or revaluations.

Adjusted Financial Leverage

Adjusted financial leverage decreases from 1.55 in 2020 to 1.25 in 2024, mirroring the trend observed in the reported leverage. The lower ratios and their steady decline further suggest improved financial health, reduced financial risk, and greater equity backing relative to the asset base.

Overall Trends and Insights

The data reveals a pattern of substantial asset growth coupled with even more pronounced equity growth, both on a reported and adjusted basis. The declining leverage ratios, both reported and adjusted, highlight a strengthening balance sheet with a decreasing dependency on external financing. Adjusted figures suggest a more conservative or comprehensive valuation approach, with higher equity and slightly lower leverage ratios compared to reported values, reinforcing the view of enhanced financial robustness over time.

Over the observed five-year period, several notable trends emerge from the financial data. Revenues have shown a consistent upward trajectory, increasing steadily from 4,519 million US dollars in 2020 to 10,984 million US dollars in 2024. This indicates robust business growth and expansion over the years.

Net income figures display a fluctuating yet overall increasing pattern with a significant peak in 2023. Starting at 119 million US dollars in 2020, net income rose modestly to 325 million US dollars by 2022, then surged sharply to 1,731 million in 2023 before declining somewhat to 1,425 million in 2024. This volatility contrasts revenue trends and suggests exceptional factors influenced profitability in certain years.

The reported net profit margin mirrors fluctuations in net income. Initially low at 2.62% in 2020, it climbed gradually to 4.49% in 2022. A pronounced spike to 19.30% in 2023 aligns with the large net income increase, followed by a decrease to 12.97% in 2024. This pattern reflects variability in profitability relative to revenues on a reported basis.

Adjusted financial metrics reveal a different perspective on operational performance. Adjusted revenues follow a similar upward trend as reported revenues, growing from 5,302 million in 2020 to 12,032 million in 2024, indicating consistent revenue growth when adjusting for any accounting or one-time items.

Adjusted net income shows steady annual increases from 947 million in 2020 to 2,540 million in 2024, indicating improved core profitability irrespective of irregular items. The adjusted net profit margin initially declines each year from 17.86% in 2020 to 12.82% in 2022, possibly reflecting higher expenses or investment phases. However, margins then escalate notably to above 20% in 2023 and 2024, suggesting enhanced efficiency or beneficial operational developments in later years.

Overall, the data depict a company experiencing strong growth in revenues with corresponding increases in core profitability, though reported earnings and profit margins exhibit some volatility likely due to exceptional items or accounting adjustments. The improvement in adjusted profit margins toward the end of the period indicates strengthening operational performance and profitability resilience.

Net Income

The company’s net income exhibited a strong upward trajectory from 2020 through 2022, increasing from $119 million to $325 million. A substantial surge occurred in 2023, where net income reached $1.731 billion, followed by a decline to $1.425 billion in 2024. This suggests significant volatility or exceptional events impacting profitability in the latter years.

Stockholders’ Equity

Stockholders’ equity consistently increased over the period, from $2.834 billion in 2020 to $9.609 billion in 2024. This steady growth reflects ongoing capital accumulation and retained earnings, indicating a solid strengthening of the company’s financial foundation.

Reported Return on Equity (ROE)

The reported ROE showed gradual improvement from 4.18% in 2020 to 6.46% in 2022. A sharp increase took place in 2023, reaching 22.69%, then dropping to 14.83% in 2024. This volatility corresponds with changes in net income and suggests fluctuating profitability efficiency relative to equity invested.

Adjusted Net Income

Adjusted net income, which likely accounts for non-recurring and non-operational items, increased steadily from $947 million in 2020 to $1.035 billion in 2022. A significant jump was noted in 2023 to $2.075 billion, followed by further growth to $2.54 billion in 2024. This pattern contrasts with reported net income’s decrease in 2024, implying improved core profitability and potentially the impact of adjustments smoothing income volatility.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity climbed consistently from $5.176 billion in 2020 to $15.184 billion in 2024. This strong upward trend supports the enhanced capacity for generating shareholder value and reflects sustained reinvestment and growth within the company.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE began at 18.29% in 2020, declined to 11.33% by 2022, then rose to 17.25% in 2023 and slightly decreased to 16.73% in 2024. Despite some fluctuation, adjusted ROE maintained a relatively high level throughout the period, suggesting consistent efficiency in generating returns on the adjusted equity base.

Summary of Trends and Insights

Overall, the data reveals a pattern of strong financial growth, especially highlighted by the increase in both stockholders’ equity and adjusted net income over the five-year period. The discrepancy between reported and adjusted figures in 2023 and 2024 indicates that adjustments have a significant impact on profit assessment, with adjusted metrics showing more consistent growth. The reported ROE’s notable spike and subsequent decline suggest episodic factors influencing profitability, whereas the adjusted ROE provides a smoother efficiency trend. This implies that the company’s core operations have steadily improved profitability and equity efficiency, with some volatility evident in reported earnings likely due to extraordinary or one-time items.

Over the examined period, net income demonstrated a general upward trajectory with a notable surge between 2022 and 2023, reaching a peak and then slightly declining in the subsequent year. Total assets consistently increased year over year, indicating expanding resource base and asset accumulation with a significant acceleration in growth from 2022 onward.

The reported Return on Assets (ROA) showed an upward trend from 2020 through 2023, peaking sharply in 2023 before decreasing in 2024, but remaining well above the levels observed in the earlier years. This suggests improved efficiency in generating profit from the assets until 2023, followed by a slight reduction in efficiency in 2024.

Adjusted net income figures were consistently higher than the reported net income, suggesting adjustments that possibly exclude certain expenses or one-time items enhance the view of profitability. Adjusted net income rose steadily over the period, with a particularly strong increase in 2023 and continuing growth into 2024, highlighting an improvement in core earnings capacity.

Similarly, adjusted total assets increased over the years but at a slightly slower pace compared to the reported total assets. This indicates certain asset adjustments or reclassifications that moderate the apparent asset base when compared with reported figures.

The adjusted ROA, representing core profitability relative to adjusted assets, started from a high base in 2020, experienced a decline through 2022, and then improved markedly in 2023 and 2024, reaching its highest level within the period. This trend points to varying levels of operational efficiency, with enhanced asset utilization in the most recent years.

Overall, the data reflect growth in asset scale and profitability, with fluctuations in efficiency measures. The substantial rise in both reported and adjusted net income in 2023, accompanied by the peak in ROA, implies a year of exceptional operational performance. However, the moderation in reported ROA in the following year signals caution regarding sustaining these efficiency levels despite continued income growth as indicated by adjusted figures.