ServiceNow Inc (NOW)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,731,000 | 325,000 | 230,000 | 119,000 | 627,000 |
| Revenue | US$ in thousands | 8,971,000 | 7,245,000 | 5,896,000 | 4,519,000 | 3,460,000 |
| Net profit margin | 19.30% | 4.49% | 3.90% | 2.63% | 18.12% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $1,731,000K ÷ $8,971,000K
= 19.30%
The net profit margin of ServiceNow Inc has exhibited some fluctuations over the past five years. In 2019, the net profit margin was notably high at 18.11%, likely indicating strong profitability. However, in the subsequent years, the margin experienced a downward trend, with values of 2.62% in 2020, 3.90% in 2021, and 4.49% in 2022. The margin then saw a substantial increase to 19.30% in 2023. This significant upturn suggests a marked improvement in the company's ability to convert revenue into profit in the most recent year. Further analysis and comparison with industry benchmarks and peer companies would be beneficial for a comprehensive understanding of these fluctuations.
Peer comparison
Dec 31, 2023