Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
ServiceNow Inc., solvency ratios
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | ServiceNow Inc.’s debt to equity ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | ServiceNow Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | ServiceNow Inc.’s debt to capital ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | ServiceNow Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | ServiceNow Inc.’s debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | ServiceNow Inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | ServiceNow Inc.’s financial leverage ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | ServiceNow Inc.’s interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | ServiceNow Inc.’s fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Equity
ServiceNow Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | — | — | — | 543,418 | — | |
| Long-term debt, less current portion | 1,640,153 | 694,981 | 661,707 | 630,018 | 507,812 | |
| Total debt | 1,640,153 | 694,981 | 661,707 | 1,173,436 | 507,812 | |
| Stockholders’ equity | 2,834,481 | 2,127,941 | 1,111,199 | 584,132 | 386,961 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.58 | 0.33 | 0.60 | 2.01 | 1.31 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Adobe Inc. | 0.31 | 0.39 | 0.44 | 0.22 | 0.26 | |
| Alphabet Inc. | 0.07 | 0.02 | 0.02 | 0.03 | 0.03 | |
| Autodesk Inc. | — | — | — | 2.03 | 0.92 | |
| Facebook Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | 2.99 | 3.02 | 2.73 | 2.66 | 2.31 | |
| Intuit Inc. | 0.66 | 0.12 | 0.19 | 0.36 | 0.86 | |
| Microsoft Corp. | 0.54 | 0.71 | 0.92 | 1.19 | 0.75 | |
| Oracle Corp. | 5.93 | 2.58 | 1.33 | 1.08 | 0.93 | |
| salesforce.com inc. | 0.08 | 0.20 | 0.18 | 0.27 | 0.26 | |
| Debt to Equity, Sector | ||||||
| Software & Computer Services | 0.40 | 0.43 | 0.46 | 0.52 | 0.43 | |
| Debt to Equity, Industry | ||||||
| Technology | 0.55 | 0.56 | 0.56 | 0.59 | 0.48 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
1 2020 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 1,640,153 ÷ 2,834,481 = 0.58
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | ServiceNow Inc.’s debt to equity ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Debt to Equity (including Operating Lease Liability)
ServiceNow Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | — | — | — | 543,418 | — | |
| Long-term debt, less current portion | 1,640,153 | 694,981 | 661,707 | 630,018 | 507,812 | |
| Total debt | 1,640,153 | 694,981 | 661,707 | 1,173,436 | 507,812 | |
| Current portion of operating lease liabilities | 72,236 | 52,668 | — | — | — | |
| Operating lease liabilities, less current portion | 422,779 | 383,221 | — | — | — | |
| Total debt (including operating lease liability) | 2,135,168 | 1,130,870 | 661,707 | 1,173,436 | 507,812 | |
| Stockholders’ equity | 2,834,481 | 2,127,941 | 1,111,199 | 584,132 | 386,961 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.75 | 0.53 | 0.60 | 2.01 | 1.31 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Adobe Inc. | 0.35 | 0.39 | 0.44 | 0.22 | 0.26 | |
| Alphabet Inc. | 0.13 | 0.08 | 0.02 | 0.03 | 0.03 | |
| Autodesk Inc. | — | — | — | 2.03 | 0.92 | |
| Facebook Inc. | 0.08 | 0.10 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | 3.23 | 3.27 | 2.73 | 2.66 | 2.31 | |
| Intuit Inc. | 0.71 | 0.12 | 0.19 | 0.36 | 0.86 | |
| Microsoft Corp. | 0.61 | 0.78 | 1.01 | 1.19 | 0.75 | |
| Oracle Corp. | 6.10 | 2.58 | 1.33 | 1.08 | 0.93 | |
| salesforce.com inc. | 0.17 | 0.20 | 0.18 | 0.27 | 0.26 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Software & Computer Services | 0.49 | 0.50 | 0.47 | 0.52 | 0.43 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Technology | 0.62 | 0.61 | 0.57 | 0.59 | 0.48 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 2,135,168 ÷ 2,834,481 = 0.75
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | ServiceNow Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Debt to Capital
ServiceNow Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | — | — | — | 543,418 | — | |
| Long-term debt, less current portion | 1,640,153 | 694,981 | 661,707 | 630,018 | 507,812 | |
| Total debt | 1,640,153 | 694,981 | 661,707 | 1,173,436 | 507,812 | |
| Stockholders’ equity | 2,834,481 | 2,127,941 | 1,111,199 | 584,132 | 386,961 | |
| Total capital | 4,474,634 | 2,822,922 | 1,772,906 | 1,757,568 | 894,773 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.37 | 0.25 | 0.37 | 0.67 | 0.57 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Adobe Inc. | 0.24 | 0.28 | 0.31 | 0.18 | 0.20 | |
| Alphabet Inc. | 0.06 | 0.02 | 0.02 | 0.03 | 0.03 | |
| Autodesk Inc. | 1.07 | 1.11 | 1.19 | 0.67 | 0.48 | |
| Facebook Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | 0.75 | 0.75 | 0.73 | 0.73 | 0.70 | |
| Intuit Inc. | 0.40 | 0.10 | 0.16 | 0.26 | 0.46 | |
| Microsoft Corp. | 0.35 | 0.41 | 0.48 | 0.54 | 0.43 | |
| Oracle Corp. | 0.86 | 0.72 | 0.57 | 0.52 | 0.48 | |
| salesforce.com inc. | 0.07 | 0.17 | 0.15 | 0.21 | 0.21 | |
| Debt to Capital, Sector | ||||||
| Software & Computer Services | 0.29 | 0.30 | 0.31 | 0.34 | 0.30 | |
| Debt to Capital, Industry | ||||||
| Technology | 0.36 | 0.36 | 0.36 | 0.37 | 0.33 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 1,640,153 ÷ 4,474,634 = 0.37
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | ServiceNow Inc.’s debt to capital ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Debt to Capital (including Operating Lease Liability)
ServiceNow Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | — | — | — | 543,418 | — | |
| Long-term debt, less current portion | 1,640,153 | 694,981 | 661,707 | 630,018 | 507,812 | |
| Total debt | 1,640,153 | 694,981 | 661,707 | 1,173,436 | 507,812 | |
| Current portion of operating lease liabilities | 72,236 | 52,668 | — | — | — | |
| Operating lease liabilities, less current portion | 422,779 | 383,221 | — | — | — | |
| Total debt (including operating lease liability) | 2,135,168 | 1,130,870 | 661,707 | 1,173,436 | 507,812 | |
| Stockholders’ equity | 2,834,481 | 2,127,941 | 1,111,199 | 584,132 | 386,961 | |
| Total capital (including operating lease liability) | 4,969,649 | 3,258,811 | 1,772,906 | 1,757,568 | 894,773 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.43 | 0.35 | 0.37 | 0.67 | 0.57 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Adobe Inc. | 0.26 | 0.28 | 0.31 | 0.18 | 0.20 | |
| Alphabet Inc. | 0.11 | 0.07 | 0.02 | 0.03 | 0.03 | |
| Autodesk Inc. | 1.06 | 1.11 | 1.19 | 0.67 | 0.48 | |
| Facebook Inc. | 0.08 | 0.09 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | 0.76 | 0.77 | 0.73 | 0.73 | 0.70 | |
| Intuit Inc. | 0.42 | 0.10 | 0.16 | 0.26 | 0.46 | |
| Microsoft Corp. | 0.38 | 0.44 | 0.50 | 0.54 | 0.43 | |
| Oracle Corp. | 0.86 | 0.72 | 0.57 | 0.52 | 0.48 | |
| salesforce.com inc. | 0.15 | 0.17 | 0.15 | 0.21 | 0.21 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Software & Computer Services | 0.33 | 0.34 | 0.32 | 0.34 | 0.30 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Technology | 0.38 | 0.38 | 0.36 | 0.37 | 0.33 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 2,135,168 ÷ 4,969,649 = 0.43
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | ServiceNow Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Debt to Assets
ServiceNow Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | — | — | — | 543,418 | — | |
| Long-term debt, less current portion | 1,640,153 | 694,981 | 661,707 | 630,018 | 507,812 | |
| Total debt | 1,640,153 | 694,981 | 661,707 | 1,173,436 | 507,812 | |
| Total assets | 8,715,057 | 6,022,430 | 3,879,140 | 3,397,904 | 2,033,767 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.19 | 0.12 | 0.17 | 0.35 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Adobe Inc. | 0.17 | 0.20 | 0.22 | 0.13 | 0.15 | |
| Alphabet Inc. | 0.05 | 0.02 | 0.02 | 0.02 | 0.02 | |
| Autodesk Inc. | 0.34 | 0.44 | 0.39 | 0.31 | 0.27 | |
| Facebook Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | 0.39 | 0.41 | 0.37 | 0.37 | 0.36 | |
| Intuit Inc. | 0.31 | 0.07 | 0.08 | 0.12 | 0.24 | |
| Microsoft Corp. | 0.21 | 0.25 | 0.29 | 0.36 | 0.28 | |
| Oracle Corp. | 0.62 | 0.52 | 0.44 | 0.43 | 0.39 | |
| salesforce.com inc. | 0.05 | 0.10 | 0.08 | 0.11 | 0.10 | |
| Debt to Assets, Sector | ||||||
| Software & Computer Services | 0.19 | 0.20 | 0.22 | 0.24 | 0.22 | |
| Debt to Assets, Industry | ||||||
| Technology | 0.24 | 0.24 | 0.25 | 0.27 | 0.24 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 1,640,153 ÷ 8,715,057 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | ServiceNow Inc.’s debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Debt to Assets (including Operating Lease Liability)
ServiceNow Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | — | — | — | 543,418 | — | |
| Long-term debt, less current portion | 1,640,153 | 694,981 | 661,707 | 630,018 | 507,812 | |
| Total debt | 1,640,153 | 694,981 | 661,707 | 1,173,436 | 507,812 | |
| Current portion of operating lease liabilities | 72,236 | 52,668 | — | — | — | |
| Operating lease liabilities, less current portion | 422,779 | 383,221 | — | — | — | |
| Total debt (including operating lease liability) | 2,135,168 | 1,130,870 | 661,707 | 1,173,436 | 507,812 | |
| Total assets | 8,715,057 | 6,022,430 | 3,879,140 | 3,397,904 | 2,033,767 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.24 | 0.19 | 0.17 | 0.35 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Adobe Inc. | 0.19 | 0.20 | 0.22 | 0.13 | 0.15 | |
| Alphabet Inc. | 0.09 | 0.06 | 0.02 | 0.02 | 0.02 | |
| Autodesk Inc. | 0.41 | 0.44 | 0.39 | 0.31 | 0.27 | |
| Facebook Inc. | 0.07 | 0.08 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | 0.43 | 0.45 | 0.37 | 0.37 | 0.36 | |
| Intuit Inc. | 0.33 | 0.07 | 0.08 | 0.12 | 0.24 | |
| Microsoft Corp. | 0.24 | 0.28 | 0.32 | 0.36 | 0.28 | |
| Oracle Corp. | 0.64 | 0.52 | 0.44 | 0.43 | 0.39 | |
| salesforce.com inc. | 0.11 | 0.10 | 0.08 | 0.11 | 0.10 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Software & Computer Services | 0.23 | 0.24 | 0.22 | 0.24 | 0.22 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Technology | 0.27 | 0.26 | 0.25 | 0.27 | 0.24 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 2,135,168 ÷ 8,715,057 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | ServiceNow Inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020. |
Financial Leverage
ServiceNow Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 8,715,057 | 6,022,430 | 3,879,140 | 3,397,904 | 2,033,767 | |
| Stockholders’ equity | 2,834,481 | 2,127,941 | 1,111,199 | 584,132 | 386,961 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.07 | 2.83 | 3.49 | 5.82 | 5.26 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Adobe Inc. | 1.83 | 1.97 | 2.00 | 1.72 | 1.71 | |
| Alphabet Inc. | 1.44 | 1.37 | 1.31 | 1.29 | 1.20 | |
| Autodesk Inc. | — | — | — | 6.54 | 3.41 | |
| Facebook Inc. | 1.24 | 1.32 | 1.16 | 1.14 | 1.10 | |
| International Business Machines Corp. | 7.57 | 7.30 | 7.35 | 7.12 | 6.44 | |
| Intuit Inc. | 2.14 | 1.68 | 2.20 | 3.00 | 3.66 | |
| Microsoft Corp. | 2.55 | 2.80 | 3.13 | 3.33 | 2.69 | |
| Oracle Corp. | 9.56 | 4.99 | 3.00 | 2.51 | 2.37 | |
| salesforce.com inc. | 1.63 | 1.97 | 2.24 | 2.34 | 2.55 | |
| Financial Leverage, Sector | ||||||
| Software & Computer Services | 2.08 | 2.14 | 2.10 | 2.13 | 1.97 | |
| Financial Leverage, Industry | ||||||
| Technology | 2.31 | 2.32 | 2.27 | 2.20 | 2.04 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
1 2020 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 8,715,057 ÷ 2,834,481 = 3.07
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | ServiceNow Inc.’s financial leverage ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020. |
Interest Coverage
ServiceNow Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | 118,503 | 626,698 | (26,704) | (149,130) | (451,804) | |
| Add: Income tax expense | 30,682 | (559,513) | (12,320) | 126 | 1,753 | |
| Add: Interest expense | 32,746 | 33,283 | 52,733 | 53,394 | 33,278 | |
| Earnings before interest and tax (EBIT) | 181,931 | 100,468 | 13,709 | (95,610) | (416,773) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 5.56 | 3.02 | 0.26 | -1.79 | -12.52 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Adobe Inc. | 37.00 | 21.38 | 32.31 | 29.73 | 21.37 | |
| Alphabet Inc. | 357.16 | 397.25 | 307.25 | 250.48 | 195.76 | |
| Autodesk Inc. | 6.46 | 0.18 | -15.15 | -16.64 | 0.40 | |
| Facebook Inc. | — | — | — | — | — | |
| International Business Machines Corp. | 4.62 | 8.58 | 16.71 | 19.56 | 20.60 | |
| Intuit Inc. | 158.00 | 126.40 | 76.15 | 45.10 | 35.37 | |
| Microsoft Corp. | 21.47 | 17.27 | 14.35 | 11.42 | 16.89 | |
| Oracle Corp. | 7.13 | 6.97 | 7.43 | 7.47 | 8.88 | |
| salesforce.com inc. | 6.39 | 7.38 | 3.32 | 1.29 | 1.89 | |
| Interest Coverage, Sector | ||||||
| Software & Computer Services | 25.97 | 21.66 | 22.27 | 20.29 | 23.26 | |
| Interest Coverage, Industry | ||||||
| Technology | 22.15 | 19.78 | 21.77 | 20.42 | 22.56 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 181,931 ÷ 32,746 = 5.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | ServiceNow Inc.’s interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
Fixed Charge Coverage
ServiceNow Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | 118,503 | 626,698 | (26,704) | (149,130) | (451,804) | |
| Add: Income tax expense | 30,682 | (559,513) | (12,320) | 126 | 1,753 | |
| Add: Interest expense | 32,746 | 33,283 | 52,733 | 53,394 | 33,278 | |
| Earnings before interest and tax (EBIT) | 181,931 | 100,468 | 13,709 | (95,610) | (416,773) | |
| Add: Operating lease costs | 83,000 | 64,200 | 46,800 | 42,800 | 34,200 | |
| Earnings before fixed charges and tax | 264,931 | 164,668 | 60,509 | (52,810) | (382,573) | |
| Interest expense | 32,746 | 33,283 | 52,733 | 53,394 | 33,278 | |
| Operating lease costs | 83,000 | 64,200 | 46,800 | 42,800 | 34,200 | |
| Fixed charges | 115,746 | 97,483 | 99,533 | 96,194 | 67,478 | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 2.29 | 1.69 | 0.61 | -0.55 | -5.67 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Adobe Inc. | 18.77 | 10.78 | 13.34 | 12.26 | 9.79 | |
| Alphabet Inc. | 16.92 | 17.10 | 25.69 | 23.49 | 24.65 | |
| Autodesk Inc. | 3.09 | 0.62 | -5.16 | -4.51 | 0.78 | |
| Facebook Inc. | 24.85 | 22.78 | 41.32 | 57.73 | 47.54 | |
| International Business Machines Corp. | 2.62 | 4.41 | 5.26 | 5.69 | 6.77 | |
| Intuit Inc. | 27.48 | 34.00 | 26.91 | 22.03 | 17.94 | |
| Microsoft Corp. | 12.44 | 10.94 | 9.45 | 7.57 | 9.81 | |
| Oracle Corp. | 5.68 | 5.50 | 6.38 | 6.39 | 7.44 | |
| salesforce.com inc. | 1.68 | 2.89 | 1.54 | 1.08 | 1.26 | |
| Fixed Charge Coverage, Sector | ||||||
| Software & Computer Services | 10.83 | 10.21 | 11.17 | 10.27 | 11.18 | |
| Fixed Charge Coverage, Industry | ||||||
| Technology | 11.79 | 11.69 | 13.29 | 12.39 | 13.11 | |
Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28).
1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 264,931 ÷ 115,746 = 2.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | ServiceNow Inc.’s fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |