ServiceNow Inc (NOW)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,304,000 | 1,885,000 | 2,159,000 | 2,056,000 | 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 |
| Short-term investments | US$ in thousands | 3,458,000 | 3,410,000 | 3,254,000 | 3,054,000 | 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 |
| Receivables | US$ in thousands | 2,240,000 | 1,308,000 | 1,518,000 | 1,306,000 | 2,036,000 | 1,168,000 | 1,093,000 | 1,109,000 | 1,725,000 | 898,000 | 853,000 | 824,000 | 1,390,000 | 776,000 | 781,000 | 645,000 | 1,009,420 | 631,055 | 631,992 | 615,234 |
| Total current liabilities | US$ in thousands | 8,358,000 | 6,786,000 | 7,172,000 | 7,033,000 | 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 |
| Quick ratio | 0.96 | 0.97 | 0.97 | 0.91 | 0.94 | 0.93 | 1.01 | 1.05 | 1.00 | 1.10 | 0.99 | 1.00 | 0.95 | 1.00 | 0.96 | 1.12 | 1.10 | 1.26 | 1.04 | 0.91 |
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 fluctuated over the years based on the provided data. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally seen as a good indication of a company's short-term liquidity.
In March 2020, the quick ratio was 0.91, indicating that the company may have had difficulty meeting its short-term obligations with its liquid assets alone. However, by September 2020, the quick ratio had improved to 1.26, suggesting a stronger ability to cover short-term liabilities.
There were fluctuations in the quick ratio over the next few quarters, with values ranging from 0.95 to 1.12, showing some variability in the company's liquidity position. In general, the quick ratio stayed relatively close to or above 1 during this period, which is positive.
Towards the end of 2023 and into 2024, the quick ratio dropped below 1 again, signaling a possible decrease in the company's ability to cover short-term obligations with its current liquid assets. The quick ratio ranged from 0.91 to 0.97 during this time frame.
Overall, while there were fluctuations, ServiceNow Inc maintained a quick ratio generally close to or above 1 in the period analyzed, indicating satisfactory short-term liquidity levels. It would be important for the company to continue monitoring and managing its liquidity position to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024