ServiceNow Inc (NOW)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 2,826,900 | 2,297,210 | 2,442,290 | 2,374,490 |
| 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 |
| Current ratio | 1.06 | 1.08 | 1.14 | 1.17 | 1.11 | 1.24 | 1.12 | 1.12 | 1.05 | 1.13 | 1.08 | 1.23 | 1.21 | 1.40 | 1.17 | 1.03 | 1.03 | 1.05 | 1.10 | 1.13 |
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 has shown fluctuation over the past several quarters. The current ratio measures the company's ability to meet its short-term obligations with its short-term assets. A ratio above 1 indicates that the company has more current assets than current liabilities.
Looking at the trends, the current ratio has decreased from 1.24 in September 2022 to 1.06 in December 2023, indicating a potential decline in the company's ability to cover its short-term obligations with its current assets. However, it's important to note that the current ratio has generally remained above 1, which suggests that the company has had sufficient current assets to cover its short-term liabilities in most periods.
The fluctuation in the current ratio could be attributed to changes in current assets and liabilities, such as fluctuations in cash, accounts receivable, accounts payable, and short-term debt. Investors and analysts may want to further investigate the underlying reasons for these fluctuations to assess the company's liquidity and short-term financial health.
Peer comparison
Dec 31, 2023