ServiceNow Inc (NOW)
Receivables 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 |
| Receivables | US$ in thousands | 2,240,000 | 2,036,000 | 1,725,000 | 1,390,000 | 1,009,420 |
| Receivables turnover | 4.90 | 4.41 | 4.20 | 4.24 | 4.48 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $10,984,000K ÷ $2,240,000K
= 4.90
ServiceNow Inc's receivables turnover has shown a consistent trend over the five-year period from December 31, 2020, to December 31, 2024. The receivables turnover ratio decreased slightly from 4.48 in 2020 to 4.24 in 2021, indicating that the company took slightly longer to collect its accounts receivable in 2021. However, it improved in the subsequent years, with ratios of 4.20 in 2022, 4.41 in 2023, and 4.90 in 2024, suggesting a more efficient collection of receivables in these years. A higher receivables turnover ratio generally indicates that the company is more effectively managing its credit sales and collecting payments from customers. Overall, the trend in ServiceNow Inc's receivables turnover ratio reflects a positive picture of the company's ability to manage its accounts receivable efficiently over the five-year period.
Peer comparison
Dec 31, 2024