ServiceNow Inc (NOW)
Receivables 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 |
| Receivables | US$ in thousands | 2,036,000 | 1,725,000 | 1,390,000 | 1,009,420 | 835,279 |
| Receivables turnover | 4.41 | 4.20 | 4.24 | 4.48 | 4.14 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,971,000K ÷ $2,036,000K
= 4.41
The receivables turnover ratio measures the efficiency with which a company collects outstanding receivables from its customers. ServiceNow Inc's receivables turnover has shown some fluctuation over the past five years, ranging from 3.43 in 2019 to 3.65 in 2020, but generally staying within a relatively narrow range.
The slight variations may suggest changes in the company's credit policies, customer payment behaviors, or sales volume. It's important to note that a higher turnover ratio indicates more efficient management of receivables, as it reflects the company's ability to collect payments quickly. Overall, ServiceNow Inc's receivables turnover ratios indicate a consistent, though not significantly improving, efficiency in collecting receivables over the years.
Peer comparison
Dec 31, 2023