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


See also:

ServiceNow Inc Receivables Turnover (Quarterly Data)