ServiceNow Inc (NOW)

Total asset 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
Total assets	US$ in thousands	17,387,000	15,091,000	14,923,000	13,614,000	13,299,000	11,106,000	11,102,000	10,993,000	10,798,000	9,478,000	9,187,000	8,822,000	8,715,000	7,705,460	6,521,310	6,197,420	6,022,430	4,756,810	4,602,700	4,398,900
Total asset turnover		0.52	0.56	0.54	0.56	0.54	0.62	0.59	0.57	0.55	0.58	0.56	0.55	0.52	0.55	0.61	0.60	0.57	0.68	0.65	0.64

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $8,971,000K ÷ $17,387,000K
= 0.52

ServiceNow Inc's total asset turnover ratio has fluctuated over the past eight quarters, ranging from 0.52 to 0.62. The ratio indicates that, on average, the company generated $0.52 to $0.62 in revenue for every dollar of assets held during the period.

The decrease in the total asset turnover ratio from 0.62 in Q3 2022 to 0.52 in Q4 2023 suggests that the company's ability to generate sales from its total assets declined during this period. This could be due to an increase in the size of the asset base relative to sales, which may indicate inefficiencies in asset utilization or potential overinvestment in assets.

It is important for investors and analysts to monitor this trend and compare it with industry benchmarks and the company's historical performance to assess the efficiency and effectiveness of ServiceNow Inc's asset utilization and overall operational performance.