ServiceNow Inc. (NYSE:NOW)

The analysis of the quarterly financial ratios reveals several trend patterns over the observed periods.

Net Fixed Asset Turnover

This ratio shows a general upward movement from the first reported value of 6.85 in March 2020, peaking around 7.84 in June 2022. Subsequently, it declines gradually reaching approximately 6.07 by June 2025. The initial increase suggests improved efficiency in using fixed assets to generate sales, while the later decline indicates a reduced asset utilization efficiency over the most recent quarters.

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

Starting at 4.06 in March 2020, the ratio increased steadily, reaching a high of 4.63 in December 2021. Afterward, it experiences modest fluctuations, maintaining a fairly stable range around the low 4.3 to 4.4 level toward the end of the period. This stability suggests the company's operating lease and right-of-use assets contribute consistently to asset turnover efficiency over time.

Total Asset Turnover

The total asset turnover exhibits a moderate increasing trend from 0.52 in March 2020 to about 0.62 in December 2021. Following this peak, the ratio oscillates within a range of approximately 0.52 to 0.57, ending close to 0.55 by June 2025. This pattern shows that overall asset efficiency improved initially but settled to a stable level without significant incremental improvements in the later quarters.

Equity Turnover

Equity turnover reveals a declining trend from an initial 1.59 in early 2020 to a lower value near 1.10 by June 2025. The steady decrease indicates a reduction in the company's ability to generate revenue from shareholders' equity over time, reflecting either an increase in equity base or slower revenue growth relative to equity.

In summary, asset turnover ratios generally improved during the early part of the reporting period but showed signs of stabilization or slight decline more recently. Conversely, equity turnover consistently decreased, suggesting changes in capital structure or revenue dynamics that impacted the efficiency of equity use. These trends provide useful insight into operating efficiency and capital utilization over the observed timeframe.

The financial data exhibits a consistent upward trend in revenues over the entire observed period. Starting from US$1,046 million in the first quarter of 2020, revenues progressively increase each quarter, reaching US$3,215 million by the second quarter of 2025. This steady growth reflects positive business expansion and increased market demand.

Property and equipment, net, show a similar growth trajectory. From US$471 million at the beginning of 2020, these assets rise steadily, reaching US$1,985 million by the last reported quarter in 2024 and continuing upward to US$1,985 million in the same period of the following year, indicating continuous investment in fixed assets.

The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate revenues, starts at a figure above 6 in late 2020, peaking around 7.84 in the mid-2022 period. After this peak, the ratio gradually declines, moving toward slightly above 6 by mid-2025. This decline suggests that while revenues and asset bases grow, the efficiency of asset utilization has moderately decreased over time, implying that the increase in assets may not be translating into proportional revenue gains as effectively as in prior periods.

Revenues

Show consistent quarterly growth from US$1,046 million in early 2020 to over US$3,200 million by mid-2025.

Property and Equipment, Net

Demonstrate a steady increase indicating ongoing capital expenditure, rising from US$471 million in early 2020 to nearly US$2,000 million by mid-2025.

Net Fixed Asset Turnover

Indicates strong asset utilization efficiency peaking in 2022, followed by a gradual decline, suggesting that asset growth is outpacing revenue growth efficiency.

Overall, the data illustrates robust revenue growth accompanied by significant investment in property and equipment. However, the declining trend in net fixed asset turnover after 2022 highlights a possible area for management attention to improve asset productivity relative to revenues going forward.

Revenue Trends

The revenue figures demonstrate a consistent upward trajectory over the analyzed periods. Starting from $1,046 million in March 2020, revenues have increased steadily each quarter, reaching $3,215 million by June 2025. This reflects strong sales growth and possibly expanding market presence or customer base, with no evident quarterly decline across the data set.

Property and Equipment Trends

The net value of property and equipment, including operating lease and right-of-use assets, also shows a general upward trend. Beginning at $936 million in March 2020, this asset base has expanded to $2,803 million by June 2025. The growth in this category suggests ongoing investment in physical and leased assets, which may support operational expansion or capacity enhancement over time. Periodic fluctuations are minor, indicating relatively stable asset management practices.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio exhibits relative stability with mild fluctuations. Initial data points for early quarters in 2020 are missing, but from December 2020 onward, the ratio has generally fluctuated in a narrow band between approximately 4.1 and 4.6. This stability implies that the efficiency in utilizing fixed assets to generate revenue has been maintained. Small quarterly variations are normal and suggest consistent asset productivity despite the increasing asset base.

Combined Insights

The simultaneous growth in revenue and property and equipment assets, combined with a stable fixed asset turnover ratio, indicates effective management in scaling operations while maintaining asset utilization efficiency. Investments in assets appear to be aligned with revenue growth demands, neither outpacing revenues excessively nor lagging behind, which would have otherwise signaled underutilization or capacity constraints.

The financial data indicates a consistent upward trend in revenues over the analyzed periods. Revenues increased from $1,046 million in the first quarter of 2020 to $3,215 million by the second quarter of 2025, reflecting sustained growth across multiple years. This increase suggests expanding sales or service volume and possibly market share gains.

Total assets also demonstrated a growth trajectory, rising from $6,197 million in the first quarter of 2020 to $22,051 million by the second quarter of 2025. This indicates that the company has been actively investing in or acquiring assets, which may support its revenue growth and operational capacity expansion.

The total asset turnover ratio, available for certain quarters starting from September 30, 2020, exhibits moderate fluctuations within a range roughly between 0.52 and 0.62. This ratio measures how efficiently the company utilizes its assets to generate revenue. The values suggest a relatively stable efficiency level, without significant improvement or deterioration over time. Slight variations are observable but remain within a narrow range, signaling consistent operational performance regarding asset utilization.

Overall, the data presents a picture of robust revenue growth accompanied by an expanding asset base. Despite the increase in total assets, the asset turnover ratio remains stable, indicating that asset growth has been relatively proportional to revenue growth. No abrupt changes or anomalies are visible; instead, the company appears to maintain steady operational efficiency while scaling its business.

The financial data reflects notable trends and patterns in both revenues and stockholders’ equity over the analyzed periods. Revenues demonstrate consistent growth quarter over quarter, beginning at $1,046 million and rising steadily to $3,215 million by the last reported quarter. This upward trajectory suggests a strong expansion in sales or service delivery, reaffirming ongoing operational success throughout the time frame.

Stockholders’ equity also shows a clear progression upward, increasing from $2,266 million to $10,932 million. This substantial growth indicates accumulation of retained earnings, equity financing, or asset revaluation, contributing to the strengthening of the company’s financial foundation. The increase in equity outpaces the growth rate of revenues, potentially reflecting reinvestment strategies or improved profitability enhancing net worth.

The equity turnover ratio, reported from December 31, 2020 onwards, displays a diminishing trend. Initially stable around 1.58 to 1.59, it gradually declines to approximately 1.10 by the final quarter. This ratio measures the efficiency with which equity is utilized to generate revenue; the downward trend suggests that while revenues grow, equity increases at a faster rate, leading to reduced turnover. This could imply either a growing capital base that is not yet fully leveraged to accelerate revenue growth or a strategic emphasis on strengthening the balance sheet.

Overall, the data indicates a company with expanding operational scale and increasing equity, though with a declining efficiency in the use of equity capital to produce revenues. The consistent rise in both revenues and equity points to healthy growth, but the declining equity turnover ratio warrants monitoring to ensure that equity growth aligns effectively with revenue-generating activities.

Revenues

Consistently increasing across all quarters, growing from $1,046 million to $3,215 million.

Stockholders’ Equity

Rises significantly from $2,266 million to $10,932 million, indicating strengthening financial position.

Equity Turnover Ratio

Exhibits a steady decline from approximately 1.59 to 1.10, suggesting reduced efficiency in generating revenue from equity.