ServiceNow Inc (NOW)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,364,000 | 762,000 | 355,000 | 257,000 | 199,000 |
| Total assets | US$ in thousands | 20,383,000 | 17,387,000 | 13,299,000 | 10,798,000 | 8,715,000 |
| Operating ROA | 6.69% | 4.38% | 2.67% | 2.38% | 2.28% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,364,000K ÷ $20,383,000K
= 6.69%
ServiceNow Inc's operating return on assets (Operating ROA) has shown a positive trend over the years, starting at 2.28% on December 31, 2020, and steadily increasing to 6.69% by December 31, 2024. This indicates that the company has been generating more operating income relative to its assets over the period, showcasing improved operational efficiency and profitability. The significant rise in Operating ROA from 2023 to 2024, from 4.38% to 6.69%, reflects a notable improvement in the company's ability to generate earnings from its assets in the most recent year. Overall, the increasing trend in the Operating ROA is a positive sign of ServiceNow Inc's operational performance and potential for generating returns for its shareholders.
Peer comparison
Dec 31, 2024