ServiceNow Inc (NOW)
Working capital 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 |
| Total current assets | US$ in thousands | 7,777,000 | 6,654,000 | 5,220,000 | 4,522,000 | 2,826,900 |
| Total current liabilities | US$ in thousands | 7,365,000 | 6,005,000 | 4,949,000 | 3,737,000 | 2,752,780 |
| Working capital turnover | 21.77 | 11.16 | 21.76 | 5.76 | 46.68 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,971,000K ÷ ($7,777,000K – $7,365,000K)
= 21.77
The working capital turnover for ServiceNow Inc has exhibited considerable variability over the past five years.
In 2019, the working capital turnover was high at 46.69, indicating that the company efficiently utilized its working capital to generate sales. This was followed by a substantial decrease in 2020, with the working capital turnover dropping to 5.76, suggesting a significant decline in the efficiency of working capital utilization for generating revenue.
Subsequently, there was a notable improvement in 2021 as the working capital turnover surged to 21.76, indicating a more efficient use of working capital to drive sales. However, this improvement was short-lived, as reflected in the decline to 11.16 in 2022, signifying a decrease in the company's ability to leverage its working capital to generate revenue.
The most recent data for 2023 shows a significant uptick in the working capital turnover to 21.77, potentially indicating a return to a more efficient use of working capital for revenue generation.
Overall, the fluctuation in the working capital turnover over the years suggests varying levels of efficiency in how ServiceNow Inc has managed its working capital to support its sales activities.
Peer comparison
Dec 31, 2023