ServiceNow Inc (NOW)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		4.90	4.41	4.20	4.24	4.48
DSO	days	74.44	82.84	86.90	86.05	81.53

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.90
= 74.44

Based on the provided data, ServiceNow Inc's days of sales outstanding (DSO) has shown some fluctuations over the period from December 31, 2020, to December 31, 2024. The DSO increased from 81.53 days as of December 31, 2020, to 86.05 days by December 31, 2021. It continued to rise slightly to 86.90 days by December 31, 2022. However, there was a slight improvement as the DSO decreased to 82.84 days by December 31, 2023. Notably, there was a more significant decrease in the DSO to 74.44 days by December 31, 2024.

Overall, the trend in DSO indicates that the company's ability to collect accounts receivable improved towards the end of the period under review. A lower DSO suggests that the company is collecting payments from its customers more quickly, which can be a positive sign of efficiency in managing its receivables. However, it is important to continue monitoring DSO in the future to ensure that the improvement is sustained and does not signify potential issues with customer creditworthiness or collection practices.