ServiceNow Inc (NOW)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 7,050,000 | 5,672,000 | 4,543,000 | 3,532,000 | 2,664,000 |
| Revenue | US$ in thousands | 8,971,000 | 7,245,000 | 5,896,000 | 4,519,000 | 3,460,000 |
| Gross profit margin | 78.59% | 78.29% | 77.05% | 78.16% | 76.99% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $7,050,000K ÷ $8,971,000K
= 78.59%
ServiceNow Inc's gross profit margin has shown a generally positive trend over the last five years. The company's gross profit margin increased from 76.98% in 2019 to 78.59% in 2023, indicating that it has been effectively managing its cost of goods sold and generating higher gross profits relative to sales. The consistent high gross profit margin suggests the company has been successful in controlling its production and manufacturing costs. This trend reflects positively on the company's operational efficiency and pricing strategy in delivering its products and services. However, it is important for investors and stakeholders to monitor this metric in the future to ensure the company maintains its ability to generate profits from its core business activities.
Peer comparison
Dec 31, 2023