ServiceNow Inc (NOW)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 762,000 | 355,000 | 257,000 | 199,000 | 42,000 |
| Revenue | US$ in thousands | 8,971,000 | 7,245,000 | 5,896,000 | 4,519,000 | 3,460,000 |
| Operating profit margin | 8.49% | 4.90% | 4.36% | 4.40% | 1.21% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $762,000K ÷ $8,971,000K
= 8.49%
ServiceNow Inc's operating profit margin has shown a consistent upward trend over the past five years, reflecting improved operational efficiency and profitability. The operating profit margin increased from 1.22% in 2019 to 8.49% in 2023, indicating the company's ability to generate higher profits from its core business activities. This improvement suggests effective cost management and revenue growth, which are essential for sustainable financial performance. Overall, the increasing operating profit margin demonstrates ServiceNow's capacity to generate higher operating income in relation to its sales, thus enhancing its overall financial strength and competitive positioning.
Peer comparison
Dec 31, 2023