ServiceNow Inc (NOW)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 17,387,000 | 13,299,000 | 10,798,000 | 8,715,000 | 6,022,430 |
| Operating ROA | 4.38% | 2.67% | 2.38% | 2.28% | 0.70% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $762,000K ÷ $17,387,000K
= 4.38%
ServiceNow Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years, indicating improved efficiency in generating operating income from its assets. The operating ROA increased from 0.70% in 2019 to 4.38% in 2023. This suggests that the company has been able to generate more operating income for each dollar of assets employed in its operations over the years. The rising trend in operating ROA may signify improved operational efficiency, strategic management of assets, or increased profitability. It indicates a positive trajectory for the company's operational performance and is a favorable indicator for investors and stakeholders.
Peer comparison
Dec 31, 2023