Stock Analysis on Net

ServiceNow Inc. (NYSE:NOW)

Analysis of Liquidity Ratios 

Microsoft Excel

Liquidity Ratios (Summary)

ServiceNow Inc., liquidity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Current ratio 1.06 1.11 1.05 1.21 1.03
Quick ratio 1.00 1.06 1.01 1.16 0.98
Cash ratio 0.66 0.71 0.67 0.83 0.61

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).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. ServiceNow Inc. current ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. ServiceNow Inc. quick ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. ServiceNow Inc. cash ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Current Ratio

ServiceNow Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Benchmarks
Current Ratio, Competitors2
Accenture PLC 1.30 1.23 1.25 1.40 1.40
Adobe Inc. 1.34 1.11 1.25 1.48 0.79
International Business Machines Corp. 0.96 0.92 0.88 0.98 1.02
Intuit Inc. 1.47 1.39 1.94 2.26 1.83
Microsoft Corp. 1.77 1.78 2.08 2.52 2.53
Oracle Corp. 0.91 1.62 2.30 3.03 2.49
Palo Alto Networks Inc. 0.78 0.77 0.91 1.91 1.78
Salesforce Inc. 1.02 1.05 1.23 1.08 0.95
Synopsys Inc. 1.15 1.09 1.16 1.19 0.99
Current Ratio, Sector
Software & Services 1.37 1.42 1.67 1.92 1.85
Current Ratio, Industry
Information Technology 1.46 1.44 1.64 1.85 1.77

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 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. ServiceNow Inc. current ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Quick Ratio

ServiceNow Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cash and cash equivalents 1,897 1,470 1,728 1,677 776
Short-term investments 2,980 2,810 1,576 1,415 915
Accounts receivable, net 2,036 1,725 1,390 1,009 835
Current portion of deferred commissions 461 369 303 229 175
Total quick assets 7,374 6,374 4,997 4,330 2,701
 
Current liabilities 7,365 6,005 4,949 3,737 2,753
Liquidity Ratio
Quick ratio1 1.00 1.06 1.01 1.16 0.98
Benchmarks
Quick Ratio, Competitors2
Accenture PLC 1.18 1.12 1.14 1.29 1.29
Adobe Inc. 1.22 1.00 1.11 1.34 0.70
International Business Machines Corp. 0.80 0.73 0.67 0.83 0.87
Intuit Inc. 1.25 1.17 1.65 2.04 1.44
Microsoft Corp. 1.54 1.57 1.90 2.33 2.35
Oracle Corp. 0.74 1.43 2.15 2.83 2.31
Palo Alto Networks Inc. 0.72 0.75 0.88 1.85 1.72
Salesforce Inc. 0.90 0.93 1.11 0.95 0.82
Synopsys Inc. 0.85 0.85 0.89 0.94 0.73
Quick Ratio, Sector
Software & Services 1.19 1.25 1.51 1.76 1.69
Quick Ratio, Industry
Information Technology 1.17 1.15 1.38 1.60 1.55

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
Quick ratio = Total quick assets ÷ Current liabilities
= 7,374 ÷ 7,365 = 1.00

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. ServiceNow Inc. quick ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Cash Ratio

ServiceNow Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cash and cash equivalents 1,897 1,470 1,728 1,677 776
Short-term investments 2,980 2,810 1,576 1,415 915
Total cash assets 4,877 4,280 3,304 3,092 1,691
 
Current liabilities 7,365 6,005 4,949 3,737 2,753
Liquidity Ratio
Cash ratio1 0.66 0.71 0.67 0.83 0.61
Benchmarks
Cash Ratio, Competitors2
Accenture PLC 0.50 0.45 0.52 0.67 0.55
Adobe Inc. 0.95 0.75 0.84 1.09 0.51
International Business Machines Corp. 0.39 0.28 0.22 0.36 0.24
Intuit Inc. 0.97 0.90 1.46 2.00 1.39
Microsoft Corp. 1.07 1.10 1.47 1.89 1.93
Oracle Corp. 0.44 1.12 1.93 2.50 2.03
Palo Alto Networks Inc. 0.31 0.44 0.57 1.39 1.37
Salesforce Inc. 0.48 0.48 0.67 0.54 0.39
Synopsys Inc. 0.53 0.56 0.65 0.58 0.42
Cash Ratio, Sector
Software & Services 0.75 0.81 1.10 1.33 1.23
Cash Ratio, Industry
Information Technology 0.75 0.72 0.96 1.19 1.11

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
Cash ratio = Total cash assets ÷ Current liabilities
= 4,877 ÷ 7,365 = 0.66

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. ServiceNow Inc. cash ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.