ServiceNow Inc (NOW)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 2,240,000 | 2,036,000 | 1,725,000 | 1,390,000 | 1,009,420 |
| Total current liabilities | US$ in thousands | 8,358,000 | 7,365,000 | 6,005,000 | 4,949,000 | 3,737,000 |
| Quick ratio | 0.96 | 0.94 | 1.00 | 0.95 | 1.10 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,304,000K
+ $3,458,000K
+ $2,240,000K)
÷ $8,358,000K
= 0.96
The quick ratio of ServiceNow Inc has exhibited some fluctuations over the years. As of December 31, 2020, the quick ratio stood at a healthy 1.10, indicating the company had $1.10 in liquid assets available to cover each $1 of current liabilities. However, there was a slight decrease in the quick ratio to 0.95 by December 31, 2021, suggesting a potential decrease in the company's ability to meet its short-term obligations with its liquid assets.
By December 31, 2022, the quick ratio improved to 1.00, signaling a recovery in the company's short-term liquidity position. Nonetheless, by December 31, 2023, the quick ratio fell slightly to 0.94, potentially reflecting a decreased ability to cover immediate liabilities with liquid assets.
As of December 31, 2024, the quick ratio improved to 0.96, indicating a slight enhancement in ServiceNow's ability to meet short-term obligations. Overall, while the quick ratio has shown some variability, it is essential for investors and analysts to monitor these fluctuations to assess the company's liquidity position accurately and its ability to meet short-term financial obligations.
Peer comparison
Dec 31, 2024