Analysis of Geographic Areas
ServiceNow Inc. operates in 3 regions: North America; Europe, the Middle East and Africa (EMEA); and Asia Pacific and other.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to Earnings (P/E) since 2012
- Analysis of Debt
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Area Asset Turnover
ServiceNow Inc., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | |||||
| Europe, the Middle East and Africa (EMEA) | |||||
| Asia Pacific and other |
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).
- North America
- The asset turnover ratio in North America shows a declining trend over the five-year period. It started at 7.51 in 2020 and reached a peak of 7.75 in 2021, after which it decreased each year, falling to 6.04 by 2024. This indicates a reduction in asset efficiency in this region over time.
- Europe, the Middle East and Africa (EMEA)
- The EMEA region experienced an initial increase in asset turnover from 6.58 in 2020 to 8.81 in 2021, reflecting improved asset utilization. However, after 2021, the ratio declined steadily to 6.62 in 2024, suggesting a reversal of earlier gains and a downward adjustment in asset efficiency.
- Asia Pacific and other
- The asset turnover ratio for the Asia Pacific and other regions has shown a generally positive trend over the period. Starting from 4.58 in 2020, it increased to 5.59 in 2021, experienced a dip to 4.43 in 2022, but then rose again significantly, reaching 6.50 by 2024. This trend indicates growing asset efficiency in this region after some initial volatility.
- Overall Insights
- Throughout the period, the North American and EMEA regions exhibited declining asset turnover ratios after early peaks, signaling decreasing efficiency in asset utilization in these established markets. Conversely, the Asia Pacific region showed improvement, suggesting increased operational efficiency or expanding market activities. The divergent trends may reflect shifting strategic focuses or market dynamics across the geographic segments.
Area Asset Turnover: North America
ServiceNow Inc.; North America; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Property and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
- Revenue Trends
- Revenues in the North America geographic area have shown a consistent upward trajectory over the five-year period. Starting at 2,960 million USD in 2020, revenues increased year-over-year, reaching 6,909 million USD by 2024. This represents a more than twofold increase, indicating strong and sustained growth within this region.
- Property and Equipment, Net
- The net value of property and equipment has also experienced substantial growth. It rose from 394 million USD in 2020 to 1,144 million USD in 2024. This more than doubling suggests ongoing investments in physical assets, potentially to support expanding operations or infrastructure in North America.
- Area Asset Turnover Ratio
- The area asset turnover ratio exhibits a declining trend over the analyzed period. Beginning at 7.51 in 2020, the ratio gradually decreased to 6.04 by 2024. This decline indicates that although revenues are increasing, the efficiency with which the company utilizes its property and equipment to generate revenue is diminishing. The decrease may reflect that asset growth is outpacing revenue growth or that assets are not being leveraged as effectively as in prior years.
- Summary
- Overall, the North America segment shows strong revenue growth accompanied by significant capital investment in property and equipment. However, the declining area asset turnover ratio suggests a reduction in asset utilization efficiency. This combination implies that while the business is expanding, there may be challenges in maintaining proportional revenue generation relative to asset investment.
Area Asset Turnover: Europe, the Middle East and Africa (EMEA)
ServiceNow Inc.; Europe, the Middle East and Africa (EMEA); area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Property and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
- Revenue Trends
- The revenues have shown consistent year-over-year growth from 2020 to 2024. Starting at $1,132 million in 2020, revenues expanded significantly to $2,834 million by 2024. The growth rate appears robust, highlighting a steady increase in sales within the Europe, the Middle East, and Africa region over the five-year period.
- Property and Equipment, Net
- There has been a notable increase in net property and equipment assets over the observed period. The value rose from $172 million in 2020 to $428 million in 2024, indicating substantial investments in fixed assets. This upward trend suggests an expansion of physical or infrastructural capabilities which may support future revenue growth or operational requirements.
- Area Asset Turnover Ratio
- The area asset turnover ratio shows a declining trend over the period despite the increase in revenues and property and equipment. It decreased from 6.58 in 2020, peaked at 8.81 in 2021, and then progressively dropped to 6.62 in 2024. This decline indicates that, relative to the assets invested in the area, the efficiency in generating revenue is decreasing, possibly due to the substantial rise in property and equipment not yet matched by proportional revenue increases.
Area Asset Turnover: Asia Pacific and other
ServiceNow Inc.; Asia Pacific and other; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Property and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
- Revenues
- The revenues from the Asia Pacific and other geographic area have shown a consistent upward trajectory over the analyzed period. Starting at $427 million in 2020, revenues increased steadily each year, reaching $1,241 million by the end of 2024. This represents nearly a threefold increase over five years, indicating strong growth in this region.
- Property and Equipment, Net
- The net value of property and equipment also displayed a positive trend, albeit with a more moderate rate of increase compared to revenues. Beginning at $93 million in 2020, the net property and equipment rose each year and reached $191 million by the end of 2024. This gradual increase suggests ongoing investment in fixed assets within the region.
- Area Asset Turnover
- The area asset turnover ratio experienced some fluctuation but revealed an overall improvement across the period. After rising from 4.58 in 2020 to 5.59 in 2021, it declined to 4.43 in 2022 before recovering to 5.55 in 2023 and further increasing to 6.50 in 2024. The final value indicates enhanced efficiency in using assets to generate revenue within the region.
- Summary
- Overall, the Asia Pacific and other geographic area demonstrated significant revenue growth coupled with sustained investments in property and equipment. Despite some variability, the area asset turnover ratio improved, reflecting increased asset utilization efficiency over time. This combination of factors suggests robust expansion and operational improvements in the region during the reviewed years.
Revenues
ServiceNow Inc., revenues by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | |||||
| Europe, the Middle East and Africa (EMEA) | |||||
| Asia Pacific and other | |||||
| Total |
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).
- Revenue Trends by Geographic Area
-
The total revenue exhibited a consistent upward trend over the five-year period, increasing from 4,519 million US dollars in 2020 to 10,984 million US dollars in 2024. This reflects a compound growth pattern across all regions.
- North America
-
Revenue from North America showed steady growth over the period, rising from 2,960 million US dollars in 2020 to 6,909 million US dollars in 2024. The increase appears to be consistent year-on-year, with an approximate doubling of revenue within the five-year timeframe. This region consistently contributed the largest portion to total revenue.
- Europe, the Middle East and Africa (EMEA)
-
The EMEA region also experienced continuous growth, with revenues increasing from 1,132 million US dollars in 2020 to 2,834 million US dollars in 2024. Growth accelerated particularly after 2021, indicating strengthening market presence or demand in this region. EMEA's revenue contribution remains substantial but is significantly lower than North America's.
- Asia Pacific and Other
-
Revenue in the Asia Pacific and other regions followed a consistent growth trajectory, starting at 427 million US dollars in 2020 and reaching 1,241 million US dollars in 2024. Although this region generates the smallest revenue among the three categories, its growth rate appears robust, potentially reflecting emerging market expansion.
- Comparative Analysis
-
All regions demonstrated positive growth with no declines or stagnations noted. The revenue increase in North America remains the most significant in absolute terms, whereas EMEA and Asia Pacific regions show important relative growth rates. The compounded growth suggests effective geographic diversification and expanding market penetration in all areas examined.
Property and equipment, net
ServiceNow Inc., property and equipment, net by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| North America | |||||
| Europe, the Middle East and Africa (EMEA) | |||||
| Asia Pacific and other | |||||
| Total |
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).
- Overall trend of property and equipment, net
- There is a consistent and notable increase in the net value of property and equipment across all geographic areas over the five-year period. The total net amount has grown from 660 million US dollars in 2020 to 1,763 million US dollars in 2024, indicating significant investment and expansion in fixed assets.
- North America
- This region shows the highest absolute values and the most significant growth throughout the period. Starting at 394 million US dollars in 2020, the net property and equipment value increased steadily each year, reaching 1,144 million US dollars by 2024. This represents nearly a threefold increase, highlighting North America as the primary driver of asset growth.
- Europe, the Middle East and Africa (EMEA)
- The EMEA region experiences a more moderate but consistent upward trend. Beginning with 172 million US dollars in 2020, its net value rises gradually to 428 million US dollars in 2024. The growth accelerates in the latter years, with a more pronounced increase observed between 2022 and 2024.
- Asia Pacific and other
- This segment shows the smallest absolute values but steady growth as well. The net property and equipment balance increases from 93 million US dollars in 2020 to 191 million US dollars in 2024. Growth in this region appears more stable without significant acceleration, indicating steady but slower expansion.
- Comparative insights
- North America consistently maintains the largest share of the total net value, followed by EMEA and then Asia Pacific and other regions. The data suggests an emphasis on asset acquisition or enhancement principally in North America, while EMEA and Asia Pacific reflect supportive but smaller scale growth. The increasing total value across all regions demonstrates an overall expansion strategy with an emphasis on geographic diversification of property and equipment.