ServiceNow Inc (NOW)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 10,984,000 | 10,464,000 | 9,955,000 | 9,478,000 | 8,971,000 | 8,474,000 | 8,017,000 | 7,619,000 | 7,245,000 | 6,919,000 | 6,600,000 | 6,257,000 | 5,895,000 | 5,531,000 | 5,171,000 | 4,833,000 | 4,519,000 | 4,220,337 | 3,954,170 | 3,717,074 |
| Receivables | US$ in thousands | 2,240,000 | 1,308,000 | 1,518,000 | 1,306,000 | 2,036,000 | 1,168,000 | 1,093,000 | 1,109,000 | 1,725,000 | 898,000 | 853,000 | 824,000 | 1,390,000 | 776,000 | 781,000 | 645,000 | 1,009,420 | 631,055 | 631,992 | 615,234 |
| Receivables turnover | 4.90 | 8.00 | 6.56 | 7.26 | 4.41 | 7.26 | 7.33 | 6.87 | 4.20 | 7.70 | 7.74 | 7.59 | 4.24 | 7.13 | 6.62 | 7.49 | 4.48 | 6.69 | 6.26 | 6.04 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $10,984,000K ÷ $2,240,000K
= 4.90
ServiceNow Inc's receivables turnover ratio has displayed fluctuating trends over the past few years. The ratio, which measures how efficiently the company collects its accounts receivable, has shown variations in performance.
In the recent quarters, the receivables turnover ratio has demonstrated an overall increasing trend. From March 31, 2023, to September 30, 2024, there has been a general upward movement in the ratio, indicating an improvement in the company's ability to collect outstanding receivables in a timely manner.
However, it is noteworthy that there were periods, such as December 31, 2020, and December 31, 2021, where the ratio dropped significantly, which could suggest potential challenges in the collection of receivables during those periods.
Overall, the upward trend in the receivables turnover ratio in the more recent quarters is a positive indication of ServiceNow Inc's improved efficiency in managing its accounts receivable. It is important for the company to continue monitoring and managing its receivables effectively to sustain this positive trend in the future.
Peer comparison
Dec 31, 2024