ServiceNow Inc (NOW)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,287,000	1,921,000	1,573,000	1,353,000	987,000
Inventory	US$ in thousands	—	-345,000	369,000	303,000	228,924
Inventory turnover		—	—	4.26	4.47	4.31

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,287,000K ÷ $—K
= —

ServiceNow Inc's inventory turnover ratio has shown a stable trend over the past few years. The ratio increased from 4.31 in December 31, 2020, to 4.47 in December 31, 2021, indicating that the company has been able to sell its inventory more efficiently. However, in December 31, 2022, the ratio slightly decreased to 4.26. Inventory turnover ratios above 4 are generally considered healthy in the technology industry, suggesting that ServiceNow is efficiently managing its inventory levels and selling its products at a solid rate. The lack of data for December 31, 2023, and December 31, 2024, limits a more detailed analysis, but overall, the company's inventory turnover performance appears favorable based on the available information.