ServiceNow Inc (NOW)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,425,000 | 1,731,000 | 325,000 | 230,000 | 119,000 |
| Revenue | US$ in thousands | 10,984,000 | 8,971,000 | 7,245,000 | 5,896,000 | 4,519,000 |
| Net profit margin | 12.97% | 19.30% | 4.49% | 3.90% | 2.63% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $1,425,000K ÷ $10,984,000K
= 12.97%
ServiceNow Inc's net profit margin has shown an upward trend over the five-year period from December 31, 2020, to December 31, 2024. The net profit margin increased from 2.63% in 2020 to 12.97% in 2024. This indicates that the company has been able to generate higher profits relative to its revenue over the years.
The significant improvement in the net profit margin from 2020 to 2024 suggests that ServiceNow Inc has effectively managed its costs and expenses while increasing its profitability. The sharp increase in the net profit margin from 2019 to 2023, followed by a slight decrease in 2024, may indicate fluctuations in the company's financial performance due to various factors such as changes in revenue, costs, or operating efficiency.
Overall, ServiceNow Inc's increasing net profit margin reflects a positive trend in its profitability and efficiency in converting revenue into net income. This improvement may be the result of effective cost management strategies, revenue growth, or operational efficiencies implemented by the company during the period under review.
Peer comparison
Dec 31, 2024