ServiceNow Inc (NOW)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,187,000 | 7,777,000 | 6,654,000 | 5,220,000 | 4,522,000 |
| Total current liabilities | US$ in thousands | 8,358,000 | 7,365,000 | 6,005,000 | 4,949,000 | 3,737,000 |
| Current ratio | 1.10 | 1.06 | 1.11 | 1.05 | 1.21 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,187,000K ÷ $8,358,000K
= 1.10
ServiceNow Inc's current ratio has shown some fluctuations over the past five years. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, was 1.21 as of December 31, 2020. However, it decreased to 1.05 by the end of 2021, indicating a slight decline in the company's liquidity position.
In 2022, the current ratio improved to 1.11, suggesting a better ability to cover short-term liabilities with current assets. This improvement was followed by a slight decrease to 1.06 in 2023 and a slight increase to 1.10 in 2024.
Overall, the current ratio for ServiceNow Inc has been relatively stable around the 1.1 mark, indicating that the company generally has sufficient current assets to meet its short-term obligations. However, it is important for stakeholders to continue monitoring changes in the current ratio to assess the company's ongoing liquidity position.
Peer comparison
Dec 31, 2024