Stock Analysis on Net
Stock Analysis on Net

ServiceNow Inc. (NYSE:NOW)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

ServiceNow Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.52 0.54 0.55 0.52 0.57
Adjusted 0.64 0.64 0.67 0.66 0.74
Liquidity Ratio
Current Ratio
Reported 1.06 1.11 1.05 1.21 1.03
Adjusted 4.92 4.95 4.69 5.84 4.99
Solvency Ratios
Debt to Equity
Reported 0.20 0.30 0.43 0.58 0.33
Adjusted 0.19 0.24 0.32 0.41 0.30
Debt to Capital
Reported 0.16 0.23 0.30 0.37 0.25
Adjusted 0.16 0.20 0.24 0.29 0.23
Financial Leverage
Reported 2.28 2.64 2.92 3.07 2.83
Adjusted 1.32 1.39 1.46 1.55 1.44
Profitability Ratios
Net Profit Margin
Reported 19.30% 4.49% 3.90% 2.62% 18.11%
Adjusted 20.53% 12.82% 15.13% 17.86% 15.41%
Return on Equity (ROE)
Reported 22.69% 6.46% 6.22% 4.18% 29.45%
Adjusted 17.25% 11.33% 14.86% 18.29% 16.39%
Return on Assets (ROA)
Reported 9.96% 2.44% 2.13% 1.36% 10.41%
Adjusted 13.07% 8.17% 10.16% 11.78% 11.36%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. ServiceNow Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. ServiceNow Inc. adjusted current ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. ServiceNow Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. ServiceNow Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 ServiceNow Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. ServiceNow Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. ServiceNow Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ServiceNow Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

ServiceNow Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Revenues 8,971 7,245 5,896 4,519 3,460
Total assets 17,387 13,299 10,798 8,715 6,022
Activity Ratio
Total asset turnover1 0.52 0.54 0.55 0.52 0.57
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenues2 10,107 8,076 6,787 5,302 3,996
Adjusted total assets3 15,879 12,663 10,106 8,042 5,423
Activity Ratio
Adjusted total asset turnover4 0.64 0.64 0.67 0.66 0.74

Based on: 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).

1 2023 Calculation
Total asset turnover = Revenues ÷ Total assets
= 8,971 ÷ 17,387 = 0.52

2 Adjusted revenues. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 10,107 ÷ 15,879 = 0.64

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. ServiceNow Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 7,777 6,654 5,220 4,522 2,827
Current liabilities 7,365 6,005 4,949 3,737 2,753
Liquidity Ratio
Current ratio1 1.06 1.11 1.05 1.21 1.03
Adjusted
Selected Financial Data (US$ in millions)
Current assets 7,777 6,654 5,220 4,522 2,827
Adjusted current liabilities2 1,580 1,345 1,113 775 567
Liquidity Ratio
Adjusted current ratio3 4.92 4.95 4.69 5.84 4.99

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,777 ÷ 7,365 = 1.06

2 Adjusted current liabilities. See details »

3 2023 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 7,777 ÷ 1,580 = 4.92

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. ServiceNow Inc. adjusted current ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 1,488 1,486 1,576 1,640 695
Stockholders’ equity 7,628 5,032 3,695 2,834 2,128
Solvency Ratio
Debt to equity1 0.20 0.30 0.43 0.58 0.33
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 2,284 2,232 2,214 2,135 1,131
Adjusted stockholders’ equity3 12,026 9,136 6,911 5,176 3,758
Solvency Ratio
Adjusted debt to equity4 0.19 0.24 0.32 0.41 0.30

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 1,488 ÷ 7,628 = 0.20

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 2,284 ÷ 12,026 = 0.19

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. ServiceNow Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 1,488 1,486 1,576 1,640 695
Total capital 9,116 6,518 5,271 4,475 2,823
Solvency Ratio
Debt to capital1 0.16 0.23 0.30 0.37 0.25
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 2,284 2,232 2,214 2,135 1,131
Adjusted total capital3 14,310 11,368 9,125 7,312 4,889
Solvency Ratio
Adjusted debt to capital4 0.16 0.20 0.24 0.29 0.23

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 1,488 ÷ 9,116 = 0.16

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 2,284 ÷ 14,310 = 0.16

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. ServiceNow Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 17,387 13,299 10,798 8,715 6,022
Stockholders’ equity 7,628 5,032 3,695 2,834 2,128
Solvency Ratio
Financial leverage1 2.28 2.64 2.92 3.07 2.83
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 15,879 12,663 10,106 8,042 5,423
Adjusted stockholders’ equity3 12,026 9,136 6,911 5,176 3,758
Solvency Ratio
Adjusted financial leverage4 1.32 1.39 1.46 1.55 1.44

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 17,387 ÷ 7,628 = 2.28

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 15,879 ÷ 12,026 = 1.32

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 ServiceNow Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 1,731 325 230 119 627
Revenues 8,971 7,245 5,896 4,519 3,460
Profitability Ratio
Net profit margin1 19.30% 4.49% 3.90% 2.62% 18.11%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,075 1,035 1,027 947 616
Adjusted revenues3 10,107 8,076 6,787 5,302 3,996
Profitability Ratio
Adjusted net profit margin4 20.53% 12.82% 15.13% 17.86% 15.41%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 1,731 ÷ 8,971 = 19.30%

2 Adjusted net income. See details »

3 Adjusted revenues. See details »

4 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenues
= 100 × 2,075 ÷ 10,107 = 20.53%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. ServiceNow Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 1,731 325 230 119 627
Stockholders’ equity 7,628 5,032 3,695 2,834 2,128
Profitability Ratio
ROE1 22.69% 6.46% 6.22% 4.18% 29.45%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,075 1,035 1,027 947 616
Adjusted stockholders’ equity3 12,026 9,136 6,911 5,176 3,758
Profitability Ratio
Adjusted ROE4 17.25% 11.33% 14.86% 18.29% 16.39%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,731 ÷ 7,628 = 22.69%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 2,075 ÷ 12,026 = 17.25%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. ServiceNow Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 1,731 325 230 119 627
Total assets 17,387 13,299 10,798 8,715 6,022
Profitability Ratio
ROA1 9.96% 2.44% 2.13% 1.36% 10.41%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,075 1,035 1,027 947 616
Adjusted total assets3 15,879 12,663 10,106 8,042 5,423
Profitability Ratio
Adjusted ROA4 13.07% 8.17% 10.16% 11.78% 11.36%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,731 ÷ 17,387 = 9.96%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,075 ÷ 15,879 = 13.07%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ServiceNow Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.