ServiceNow Inc (NOW)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	2,287,000	2,172,000	2,084,000	2,003,000	1,921,000	1,820,000	1,724,000	1,642,000	1,573,000	1,532,000	1,482,000	1,422,000	1,352,000	1,257,000	1,159,000	1,063,000	987,000	918,808	867,601	832,748
Inventory	US$ in thousands	—	—	—	—	461,000	417,000	401,000	392,000	369,000	—	—	—	303,000	268,000	255,000	241,000	228,924	202,741	191,877	182,830
Inventory turnover		—	—	—	—	4.17	4.36	4.30	4.19	4.26	—	—	—	4.46	4.69	4.55	4.41	4.31	4.53	4.52	4.55

December 31, 2024 calculation

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

ServiceNow Inc's inventory turnover has shown relatively stable performance over the past few years, ranging between 4.17 and 4.69. The inventory turnover ratio measures how many times a company sells and replaces its inventory within a specific period. A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory by quickly selling products and restocking them.

In general, ServiceNow Inc has maintained a healthy inventory turnover ratio above 4, which suggests that the company is effectively managing its inventory levels and rapidly converting inventory into sales. However, it is crucial to monitor any fluctuations in this ratio to ensure optimal inventory management practices and operational efficiency. The slight variations observed in the inventory turnover ratio for ServiceNow Inc may stem from changes in demand, supply chain disruptions, or inventory management strategies. As such, continuous evaluation and adjustment of inventory-related processes may be necessary to sustain efficient operations and financial performance.