ServiceNow Inc (NOW)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,984,000 | 8,971,000 | 7,245,000 | 5,896,000 | 4,519,000 |
| Property, plant and equipment | US$ in thousands | 1,763,000 | 1,358,000 | 1,053,000 | 766,000 | 660,000 |
| Fixed asset turnover | 6.23 | 6.61 | 6.88 | 7.70 | 6.85 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,984,000K ÷ $1,763,000K
= 6.23
Based on the provided data, ServiceNow Inc's fixed asset turnover ratio has shown fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
- In December 2020, the fixed asset turnover ratio was 6.85, suggesting that for every dollar invested in fixed assets, the company generated $6.85 in revenue.
- By December 2021, the ratio improved to 7.70, indicating increased efficiency in utilizing fixed assets to generate revenue.
- However, in December 2022, the ratio slightly decreased to 6.88, showing a potential decrease in the efficiency of fixed asset utilization.
- In December 2023, the fixed asset turnover ratio further declined to 6.61, indicating a continued decrease in efficiency in utilizing fixed assets.
- By December 2024, the ratio decreased to 6.23, suggesting that the company may be facing challenges in optimizing the use of its fixed assets to generate revenue.
Overall, the fluctuation in the fixed asset turnover ratio over the years indicates the need for ServiceNow Inc to closely monitor and potentially improve the efficiency of its fixed asset utilization to enhance revenue generation.
Peer comparison
Dec 31, 2024