ServiceNow Inc (NOW)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,897,000 | 1,112,000 | 1,663,000 | 1,852,000 | 1,470,000 | 1,248,000 | 1,664,000 | 2,252,000 | 1,728,000 | 1,400,000 | 1,362,000 | 1,821,000 | 1,677,000 | 1,348,000 | 837,000 | 809,000 | 776,000 | 622,925 | 583,581 | 639,722 |
| Short-term investments | US$ in thousands | 2,980,000 | 2,955,000 | 3,084,000 | 3,062,000 | 2,810,000 | 2,708,000 | 2,170,000 | 1,762,000 | 1,576,000 | 1,631,000 | 1,622,000 | 1,635,000 | 1,415,240 | 1,603,320 | 1,505,360 | 1,049,980 | 915,317 | 848,148 | 1,069,800 | 1,022,390 |
| Total current liabilities | US$ in thousands | 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 | 2,752,780 | 2,192,560 | 2,224,980 | 2,097,840 |
| Cash ratio | 0.66 | 0.73 | 0.82 | 0.85 | 0.71 | 0.89 | 0.81 | 0.83 | 0.67 | 0.80 | 0.76 | 0.94 | 0.83 | 1.04 | 0.82 | 0.68 | 0.61 | 0.67 | 0.74 | 0.79 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,897,000K
+ $2,980,000K)
÷ $7,365,000K
= 0.66
The cash ratio of ServiceNow Inc has fluctuated over the past eight quarters, ranging from 0.72 to 0.96. This ratio measures the company's ability to cover short-term liabilities with its cash and cash equivalents. A higher ratio indicates a stronger ability to meet short-term obligations.
The trend for ServiceNow Inc's cash ratio shows some variability, with a peak of 0.96 in September 2022 and a low of 0.72 in December 2023. While the ratio has generally remained above 0.80, which indicates a relatively healthy liquidity position, the slight decline in the most recent quarter raises some concerns.
It would be advisable for stakeholders to monitor future cash ratio trends to assess the company's ability to manage short-term liabilities and maintain liquidity. Additionally, management should consider strategies to stabilize or improve the cash ratio to ensure the company's financial stability.
Peer comparison
Dec 31, 2023