Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

ServiceNow Inc. (NYSE:NOW)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

ServiceNow Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Return on Sales
Gross profit margin 78.16% 76.98% 76.13% 74.15% 71.33%
Operating profit margin 4.40% 1.22% -1.63% -5.25% -30.41%
Net profit margin 2.62% 18.11% -1.02% -7.71% -32.49%
Return on Investment
Return on equity (ROE) 4.18% 29.45% -2.40% -25.53% -116.76%
Return on assets (ROA) 1.36% 10.41% -0.69% -4.39% -22.22%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. ServiceNow Inc.’s gross profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. ServiceNow Inc.’s operating profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. ServiceNow Inc.’s net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. ServiceNow Inc.’s ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
ROA A profitability ratio calculated as net income divided by total assets. ServiceNow Inc.’s ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Gross Profit Margin

ServiceNow Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Gross profit 3,532,371  2,663,792  1,986,158  1,433,254  991,831 
Revenues 4,519,484  3,460,437  2,608,816  1,933,026  1,390,513 
Profitability Ratio
Gross profit margin1 78.16% 76.98% 76.13% 74.15% 71.33%
Benchmarks
Gross Profit Margin, Competitors2
Adobe Inc. 86.62% 85.03% 86.77% 86.16% 86.00%
Alphabet Inc. 53.58% 55.58% 56.48% 58.88% 61.08%
Autodesk Inc. 90.08% 88.87% 85.25% 83.17% 85.20%
Facebook Inc. 80.58% 81.94% 83.25% 86.58% 86.29%
International Business Machines Corp. 48.32% 47.30% 46.41% 45.78% 47.92%
Intuit Inc. 82.05% 82.80% 83.62% 84.37% 83.98%
Microsoft Corp. 67.78% 65.90% 65.25% 61.91% 61.58%
Oracle Corp. 79.68% 79.76% 79.71% 80.20% 79.81%
salesforce.com inc. 75.23% 74.02% 73.54% 73.38% 75.18%

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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 3,532,371 ÷ 4,519,484 = 78.16%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. ServiceNow Inc.’s gross profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

Operating Profit Margin

ServiceNow Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Income (loss) from operations 198,863  42,123  (42,426) (101,414) (422,808)
Revenues 4,519,484  3,460,437  2,608,816  1,933,026  1,390,513 
Profitability Ratio
Operating profit margin1 4.40% 1.22% -1.63% -5.25% -30.41%
Benchmarks
Operating Profit Margin, Competitors2
Adobe Inc. 32.93% 29.25% 31.45% 29.69% 25.51%
Alphabet Inc. 22.59% 21.15% 19.24% 23.59% 26.27%
Autodesk Inc. 10.48% -0.97% -24.75% -24.60% 0.05%
Facebook Inc. 38.01% 33.93% 44.62% 49.70% 44.96%
International Business Machines Corp. 9.22% 13.67% 16.61% 14.91% 16.40%
Intuit Inc. 28.34% 27.33% 25.10% 26.95% 26.46%
Microsoft Corp. 37.03% 34.14% 31.77% 24.82% 23.65%
Oracle Corp. 35.57% 34.26% 34.34% 33.69% 34.02%
salesforce.com inc. 1.74% 4.03% 2.25% 0.77% 1.72%
Operating Profit Margin, Sector
Software & Computer Services 27.17% 25.56% 25.90% 25.11% 24.75%
Operating Profit Margin, Industry
Technology 26.20% 25.96% 27.06% 25.45% 24.51%

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
Operating profit margin = 100 × Income (loss) from operations ÷ Revenues
= 100 × 198,863 ÷ 4,519,484 = 4.40%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. ServiceNow Inc.’s operating profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

Net Profit Margin

ServiceNow Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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)
Revenues 4,519,484  3,460,437  2,608,816  1,933,026  1,390,513 
Profitability Ratio
Net profit margin1 2.62% 18.11% -1.02% -7.71% -32.49%
Benchmarks
Net Profit Margin, Competitors2
Adobe Inc. 40.88% 26.42% 28.69% 23.20% 19.96%
Alphabet Inc. 22.06% 21.22% 22.46% 11.42% 21.58%
Autodesk Inc. 6.55% -3.14% -27.56% -28.66% -13.20%
Facebook Inc. 33.90% 26.15% 39.60% 39.20% 36.97%
International Business Machines Corp. 7.59% 12.22% 10.97% 7.27% 14.86%
Intuit Inc. 23.78% 22.95% 20.31% 18.76% 20.86%
Microsoft Corp. 30.96% 31.18% 15.02% 23.57% 19.69%
Oracle Corp. 25.94% 28.05% 9.60% 24.74% 24.03%
salesforce.com inc. 0.74% 8.36% 1.22% 2.14% -0.71%
Net Profit Margin, Sector
Software & Computer Services 24.04% 23.18% 18.85% 17.49% 20.09%
Net Profit Margin, Industry
Technology 23.04% 22.90% 20.81% 18.50% 19.30%

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
Net profit margin = 100 × Net income (loss) ÷ Revenues
= 100 × 118,503 ÷ 4,519,484 = 2.62%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. ServiceNow Inc.’s net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Return on Equity (ROE)

ServiceNow Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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)
Stockholders’ equity 2,834,481  2,127,941  1,111,199  584,132  386,961 
Profitability Ratio
ROE1 4.18% 29.45% -2.40% -25.53% -116.76%
Benchmarks
ROE, Competitors2
Adobe Inc. 39.66% 28.03% 27.67% 20.02% 15.74%
Alphabet Inc. 18.09% 17.05% 17.30% 8.30% 14.01%
Autodesk Inc. -79.35% -20.41%
Facebook Inc. 22.72% 18.29% 26.28% 21.43% 17.26%
International Business Machines Corp. 27.14% 45.25% 51.96% 32.70% 65.07%
Intuit Inc. 35.76% 41.53% 51.44% 71.71% 84.32%
Microsoft Corp. 37.43% 38.35% 20.03% 29.29% 23.33%
Oracle Corp. 83.94% 50.87% 8.37% 17.33% 18.82%
salesforce.com inc. 0.37% 7.11% 1.36% 2.40% -0.95%
ROE, Sector
Software & Computer Services 24.60% 24.78% 19.89% 17.21% 19.52%
ROE, Industry
Technology 29.52% 29.77% 26.95% 20.11% 20.72%

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
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 118,503 ÷ 2,834,481 = 4.18%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. ServiceNow Inc.’s ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Return on Assets (ROA)

ServiceNow Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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)
Total assets 8,715,057  6,022,430  3,879,140  3,397,904  2,033,767 
Profitability Ratio
ROA1 1.36% 10.41% -0.69% -4.39% -22.22%
Benchmarks
ROA, Competitors2
Adobe Inc. 21.66% 14.22% 13.80% 11.65% 9.20%
Alphabet Inc. 12.60% 12.45% 13.20% 6.42% 11.63%
Autodesk Inc. 3.47% -1.71% -13.78% -12.13% -5.99%
Facebook Inc. 18.29% 13.86% 22.72% 18.85% 15.73%
International Business Machines Corp. 3.58% 6.20% 7.07% 4.59% 10.11%
Intuit Inc. 16.70% 24.78% 23.39% 23.87% 23.04%
Microsoft Corp. 14.70% 13.69% 6.40% 8.80% 8.67%
Oracle Corp. 8.78% 10.20% 2.79% 6.92% 7.93%
salesforce.com inc. 0.23% 3.61% 0.61% 1.02% -0.37%
ROA, Sector
Software & Computer Services 11.84% 11.58% 9.45% 8.10% 9.90%
ROA, Industry
Technology 12.78% 12.84% 11.88% 9.15% 10.14%

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
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 118,503 ÷ 8,715,057 = 1.36%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. ServiceNow Inc.’s ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.