ServiceNow Inc (NOW)
Working capital 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 |
| Total current assets | US$ in thousands | 9,187,000 | 7,696,000 | 8,021,000 | 7,372,000 | 7,777,000 | 6,046,000 | 6,603,000 | 6,734,000 | 6,654,000 | 5,476,000 | 5,332,000 | 5,442,000 | 5,220,000 | 4,288,000 | 4,225,000 | 4,524,000 | 4,522,000 | 3,966,880 | 3,337,120 | 2,805,860 |
| Total current liabilities | US$ in thousands | 8,358,000 | 6,786,000 | 7,172,000 | 7,033,000 | 7,365,000 | 5,601,000 | 5,767,000 | 5,761,000 | 6,005,000 | 4,432,000 | 4,743,000 | 4,852,000 | 4,949,000 | 3,792,000 | 3,908,000 | 3,664,000 | 3,737,000 | 2,835,950 | 2,848,870 | 2,721,060 |
| Working capital turnover | 13.25 | 11.50 | 11.73 | 27.96 | 21.77 | 19.04 | 9.59 | 7.83 | 11.16 | 6.63 | 11.21 | 10.61 | 21.75 | 11.15 | 16.31 | 5.62 | 5.76 | 3.73 | 8.10 | 43.83 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,984,000K ÷ ($9,187,000K – $8,358,000K)
= 13.25
ServiceNow Inc's working capital turnover has shown fluctuating trends over the periods presented. The working capital turnover ratio reflects how efficiently the company utilizes its working capital to generate revenue.
The ratio was high at 43.83 for March 31, 2020, indicating that for every dollar of working capital, the company generated $43.83 in revenue during that period. Subsequently, the ratio decreased significantly to 3.73 by September 30, 2020, showing a decline in efficiency in utilizing working capital.
Thereafter, the ratio displayed further fluctuations, with some periods showing improvements and others declines. Notable increases were observed on December 31, 2021, and March 31, 2024, indicating improved efficiency in generating revenue relative to working capital.
On the other hand, some decreases in the ratio were seen during the analysis period, such as on June 30, 2021, and June 30, 2022, suggesting a temporary inefficiency in working capital management.
Overall, the company's working capital turnover ratio has shown varying levels of efficiency in utilizing working capital to generate revenue, signaling the importance of ongoing monitoring and optimization of working capital management practices.
Peer comparison
Dec 31, 2024