ServiceNow Inc (NOW)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 3,460,000 | 3,224,104 | 3,011,368 | 2,808,520 |
| Receivables | US$ in thousands | 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 | 835,279 | 539,416 | 503,376 | 422,559 |
| Receivables turnover | 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 | 4.14 | 5.98 | 5.98 | 6.65 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $8,971,000K ÷ $2,036,000K
= 4.41
The receivables turnover ratio for ServiceNow Inc has fluctuated over the past eight quarters, ranging from 3.46 to 5.64.
The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. A higher turnover ratio indicates that the company is more effectively managing its accounts receivable and collecting payments from customers.
The significant increase in the receivables turnover ratio from 3.46 in December 2022 to 5.64 in September 2022 suggests an improvement in the company's ability to collect receivables. However, the ratio declined to 3.59 in December 2023, indicating that the company took longer to collect payments from customers during this quarter.
It's important for investors and analysts to monitor receivables turnover over time to assess the company's liquidity and ability to efficiently convert credit sales into cash. It's also essential to consider industry benchmarks and potential changes in credit policies that may impact the trend in the receivables turnover ratio.
Peer comparison
Dec 31, 2023