ServiceNow Inc (NOW)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,304,000	1,897,000	1,470,000	1,728,000	1,677,000
Short-term investments	US$ in thousands	3,458,000	2,980,000	2,810,000	1,576,000	1,415,240
Total current liabilities	US$ in thousands	8,358,000	7,365,000	6,005,000	4,949,000	3,737,000
Cash ratio		0.69	0.66	0.71	0.67	0.83

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,304,000K + $3,458,000K) ÷ $8,358,000K
= 0.69

The cash ratio of ServiceNow Inc has shown a slight decrease over the past years, from 0.83 as of December 31, 2020 to 0.69 as of December 31, 2024. This ratio indicates the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. Despite the decline in the cash ratio, it remains above 0.5, suggesting that ServiceNow Inc has a strong liquidity position and is capable of meeting its short-term obligations using its cash reserves. However, management should continue to monitor and manage cash levels effectively to ensure the company's liquidity remains robust.