ServiceNow Inc (NOW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,971,000 | 7,245,000 | 5,896,000 | 4,519,000 | 3,460,000 |
| Property, plant and equipment | US$ in thousands | 1,358,000 | 1,053,000 | 766,000 | 660,000 | 468,085 |
| Fixed asset turnover | 6.61 | 6.88 | 7.70 | 6.85 | 7.39 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,971,000K ÷ $1,358,000K
= 6.61
The fixed asset turnover ratio measures a company's ability to generate net sales revenue from its fixed assets. ServiceNow Inc's fixed asset turnover has shown a decline in recent years, from 7.39 in 2019 to 6.61 in 2023. This suggests that the company is generating fewer net sales revenue per dollar of fixed assets invested. A decreasing trend in fixed asset turnover may indicate inefficiency in asset utilization or a shift towards a business model that relies less on fixed assets. Further analysis of the company's operational and investment activities would be needed to fully understand the implications of this trend.
Peer comparison
Dec 31, 2023