ServiceNow Inc. (NYSE:NOW)

The analysis of the quarterly financial ratios reveals several notable trends over the observed periods.

Net Fixed Asset Turnover

This ratio generally increased from 6.85 in March 2020 to a peak of 7.84 in June 2022, indicating an improving efficiency in using fixed assets to generate sales. However, following this peak, a gradual decline is observed, with values falling to approximately 6.08 by March 2025. This suggests a diminishing productivity of fixed assets in recent quarters.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

The ratio started at a lower base than the standard net fixed asset turnover, at 4.06 in March 2020, and showed some stable fluctuations with a slight upward trend until mid-2022, peaking around 4.63 in December 2021. From mid-2022 onwards, the ratio exhibited some variability but largely stabilized around 4.3 to 4.4, ending at 4.26 by March 2025. This reflects the impact of operating leases and right-of-use assets on asset utilization metrics, showing moderately stable operational efficiency in this context.

Total Asset Turnover

Total asset turnover began at 0.52 in March 2020 and showed incremental improvement to 0.62 by December 2021, indicating enhanced efficiency in using total assets to generate revenue. However, from early 2022 to 2025, the turnover ratio experienced mild fluctuations, generally ranging between 0.52 and 0.57, signaling a period of relative stability but no substantial growth in asset utilization efficiency.

Equity Turnover

The equity turnover ratio displayed a declining trend over the period. Starting around 1.59 in March 2020, the ratio remained relatively steady through 2021 but then began a consistent downward trajectory reaching approximately 1.13 by March 2025. This decline implies a reduced efficiency in generating sales from shareholders' equity over time.

Overall, the company's asset turnover indicators suggest an initial phase of improving asset utilization until around 2021, followed by plateauing or modest declines. The equity turnover ratio's steady decrease may warrant attention, as it reflects a diminishing rate of revenue generation relative to equity invested. These patterns could indicate shifts in operational efficiency, asset base management, or changes in sales growth relative to capital employed.

Revenues

Revenues demonstrate a consistent upward trajectory from March 31, 2020, to March 31, 2025. Starting at 1,046 million US dollars in early 2020, revenues progressively increased each quarter, reaching 3,088 million US dollars by the first quarter of 2025. The growth trend appears steady, with no significant declines or plateaus, reflecting a sustained increase in business activity or market demand over the five-year timeline.

Property and equipment, net

The net value of property and equipment has shown a similar upward trend throughout the periods analyzed. Beginning at 471 million US dollars in the first quarter of 2020, this asset base expanded steadily each quarter, culminating at 1,885 million US dollars by March 31, 2025. This consistent growth suggests ongoing investment in fixed assets, which may support the company's expanding operations and revenue growth.

Net fixed asset turnover

The net fixed asset turnover ratio, which reflects the efficiency of utilizing fixed assets to generate revenues, remained relatively stable over time with slight fluctuations. Starting from a calculated value of approximately 6.85 in late 2020, the ratio experienced minor variations, reaching a peak near 7.84 in mid-2022. However, there was a gradual decline thereafter, slipping to around 6.08 by the end of the projection period in early 2025. This pattern indicates that while asset investments increased, the revenue generated per unit of fixed asset somewhat diminished in the latter years, possibly due to expansion phases where asset growth outpaced revenue gains in the short term.

Revenues

The revenue figures demonstrate a consistent upward trend over the analyzed quarters. Starting at $1,046 million in March 2020, revenues increased steadily each period, reaching $3,088 million by March 2025. This pattern reflects sustained growth with no observed declines across the reported timeline. The quarterly growth rate varies but maintains an overall positive trajectory, indicative of expanding business operations or market share.

Property and Equipment, Net (Including Operating Lease, Right-of-Use Asset)

The net value of property and equipment also shows a continuous increase, rising from $936 million in March 2020 to $2,695 million by March 2025. This upward movement highlights ongoing capital investment or asset acquisition. The increases are generally steady, although some quarters show more significant jumps, such as from December 2022 ($1,735 million) to March 2023 ($1,799 million) and from December 2024 ($2,379 million) to March 2025 ($2,456 million), suggesting periods of intensified asset expansion or upgrades.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

The net fixed asset turnover ratio exhibits relative stability with some fluctuations between approximately 4.06 and 4.63 over the quarters where data is available. The ratio peaked around December 2020 at 4.63, indicating efficient utilization of fixed assets relative to revenue during that period, and showed some minor declines afterward, settling near 4.26 by March 2025. These variations suggest that while asset efficiency remains strong, there are slight changes in the rate at which fixed assets contribute to revenue generation.

Overall Analysis

The data presents an overall positive growth scenario with revenues and asset base both expanding significantly over the five-year span. The maintenance of a relatively stable fixed asset turnover ratio alongside rising asset values and revenues indicates balanced growth where investments in property and equipment are supporting increased revenue without a loss in asset efficiency. There is no indication of deteriorating asset utilization, supporting the view of effective capital deployment over time.

The financial data reveals a consistent upward trend in revenues over the periods analyzed. Revenues increased steadily from approximately 1,046 million US dollars in the first quarter of 2020 to around 3,088 million US dollars by the first quarter of 2025. This growth reflects sustained expansion in the company's sales or service activity across the five-year span, with no significant declines or plateaus noted.

Total assets have also experienced a notable increase during the same timeframe. Starting from approximately 6,197 million US dollars in the first quarter of 2020, total assets escalated to about 20,972 million US dollars by the first quarter of 2025. The progression shows a generally steady rise with some periods of more accelerated growth, particularly from late 2021 through early 2024, indicating ongoing investments or asset accumulation by the company.

The total asset turnover ratio, which measures the efficiency of asset use in generating revenues, displayed moderate fluctuations but remained within a relatively narrow range. The ratio oscillated roughly between 0.52 and 0.62 across the observed quarters, suggesting a stable ability of the company to generate revenues from its assets. There is a slight improving trend in some mid-period quarters, reaching peaks near 0.62, before stabilizing again around the mid-0.5 range. This pattern may indicate phases of improved operational efficiency or shifts in asset utilization strategies.

Overall, the financial data illustrates a company experiencing consistent revenue growth supported by asset base expansion, with relatively stable asset turnover efficiency. This combination points to effective scaling operations while maintaining operational performance levels over the years analyzed.

The revenue figures demonstrate a consistent upward trajectory over the observed periods, growing from approximately 1,046 million USD in March 2020 to around 3,088 million USD in March 2025. This steady increase indicates sustained business expansion and demand growth across these years.

Stockholders' equity similarly shows continuous growth, rising from about 2,266 million USD in March 2020 to roughly 10,139 million USD in March 2025. The equity increase reflects accumulated retained earnings and potentially additional capital contributions, signaling strengthening financial stability and increased net asset value.

In contrast, the equity turnover ratio exhibits a declining trend throughout the period. Starting from values near 1.59 in late 2020, the ratio gradually decreases to approximately 1.13 by March 2025. This decrease suggests that while equity has expanded significantly, revenues have increased at a relatively slower pace compared to equity growth, indicating potentially lower efficiency in generating revenues from shareholders’ equity over time.

Revenues

Consistent quarterly growth, increasing by nearly threefold across five years, highlighting robust top-line expansion.

Stockholders’ equity

Steady rise indicating improved capitalization and strengthened balance sheet position over the period.

Equity turnover ratio

Gradual decline suggesting diminishing revenue generation efficiency relative to equity, possibly due to expanding equity base outpacing revenue growth.