ServiceNow Inc (NOW)

Payables 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
Payables	US$ in thousands	68,000	165,000	296,000	223,000	126,000	69,000	171,000	228,000	274,000	195,000	265,000	166,000	89,000	64,000	98,000	109,000	34,000	51,456	85,757	73,904
Payables turnover		33.63	13.16	7.04	8.98	15.25	26.38	10.08	7.20	5.74	7.86	5.59	8.57	15.19	19.64	11.83	9.75	29.03	17.86	10.12	11.27

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,287,000K ÷ $68,000K
= 33.63

ServiceNow Inc's payables turnover ratio has shown some fluctuations over the provided periods. The payables turnover ratio measures how efficiently a company is managing its trade payables by comparing the cost of goods sold to average accounts payable. A higher ratio indicates that the company is paying off its suppliers more quickly.

Based on the data provided, ServiceNow Inc's payables turnover ranged from a low of 5.59 on June 30, 2022, to a high of 33.63 on December 31, 2024. The ratio showed significant variability over the periods, which could indicate changes in the company's payment policies or supplier relationships.

It is worth noting that a decreasing trend in the payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships with vendors. Conversely, a very high payables turnover ratio may indicate that the company is paying off its suppliers too quickly, which could impact cash flow management.

Further analysis would be needed to understand the reasons behind the fluctuations in ServiceNow Inc's payables turnover ratio and to assess the potential implications for the company's financial health and supplier relationships.