ServiceNow Inc (NOW)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.06 | 1.11 | 1.05 | 1.21 | 1.03 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,777,000K ÷ $7,365,000K
= 1.06
The current ratio of ServiceNow Inc, which measures the company's ability to meet its short-term obligations, has fluctuated over the past five years. In 2023, the current ratio decreased to 1.06 from 1.11 in 2022, indicating a slight weakening in the company's short-term liquidity position. However, it remains above 1, suggesting that the company still has more than enough current assets to cover its current liabilities. The downward trend over the past two years may warrant further investigation into the company's management of working capital and short-term financial obligations.
Peer comparison
Dec 31, 2023