ServiceNow Inc (NOW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 79.18% | 78.59% | 78.29% | 77.05% | 78.16% |
| Operating profit margin | 12.42% | 8.49% | 4.90% | 4.36% | 4.40% |
| Pretax margin | 15.82% | 11.24% | 5.51% | 4.22% | 3.32% |
| Net profit margin | 12.97% | 19.30% | 4.49% | 3.90% | 2.63% |
ServiceNow Inc's profitability ratios have shown a positive trend over the past five years. The gross profit margin has been consistently high, ranging from 77.05% to 79.18%, indicating efficient cost management and strong pricing strategies.
The operating profit margin has also shown improvement, starting at 4.40% in 2020 and reaching 12.42% in 2024. This suggests that the company has been able to control its operating expenses effectively while increasing its profitability.
Furthermore, the pretax margin has shown significant growth, increasing from 3.32% in 2020 to 15.82% in 2024. This indicates that ServiceNow Inc has been able to boost its profitability before considering tax expenses, possibly through revenue growth and operational efficiency.
Lastly, the net profit margin has shown some fluctuations but overall a positive trend, with a substantial increase from 2.63% in 2020 to 12.97% in 2024. This indicates that the company's bottom line performance has improved over the years, possibly due to better revenue generation or cost control measures.
Overall, ServiceNow Inc's profitability ratios reflect a strong financial performance and improving operational efficiency over the past five years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.69% | 4.38% | 2.67% | 2.38% | 2.28% |
| Return on assets (ROA) | 6.99% | 9.96% | 2.44% | 2.13% | 1.37% |
| Return on total capital | 12.29% | 8.36% | 6.54% | 5.35% | 4.09% |
| Return on equity (ROE) | 14.83% | 22.69% | 6.46% | 6.22% | 4.20% |
ServiceNow Inc's profitability has shown positive trends over the years as indicated by its profitability ratios.
1. Operating Return on Assets (Operating ROA) has experienced a steady increase from 2.28% in 2020 to 6.69% in 2024, suggesting that the company has been able to improve its operating efficiency in utilizing its assets to generate operating income.
2. Return on Assets (ROA) also exhibits a positive trend, with a significant jump from 1.37% in 2020 to 9.96% in 2023, before stabilizing at 6.99% in 2024. This indicates that the company has been successful in generating profits relative to its total assets.
3. Return on Total Capital has shown consistent growth, rising from 4.09% in 2020 to 12.29% in 2024. This signifies that ServiceNow Inc has been efficient in generating returns on the total capital employed in its operations.
4. Return on Equity (ROE) has displayed a notable improvement, increasing from 4.20% in 2020 to 22.69% in 2023, before declining slightly to 14.83% in 2024. This indicates that the company has been effective in generating returns for its shareholders.
Overall, ServiceNow Inc's profitability ratios demonstrate a positive trajectory, showcasing the company's ability to utilize its assets, capital, and equity effectively to generate returns for its stakeholders.