ServiceNow Inc (NOW)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,364,000 | 1,260,000 | 1,073,000 | 950,000 | 762,000 | 647,000 | 507,000 | 412,000 | 355,000 | 235,000 | 218,000 | 247,000 | 257,000 | 240,000 | 235,000 | 247,000 | 199,000 | 209,389 | 196,713 | 106,713 |
| Total assets | US$ in thousands | 20,383,000 | 18,434,000 | 18,207,000 | 17,544,000 | 17,387,000 | 15,091,000 | 14,923,000 | 13,614,000 | 13,299,000 | 11,106,000 | 11,102,000 | 10,993,000 | 10,798,000 | 9,478,000 | 9,187,000 | 8,822,000 | 8,715,000 | 7,705,460 | 6,521,310 | 6,197,420 |
| Operating ROA | 6.69% | 6.84% | 5.89% | 5.41% | 4.38% | 4.29% | 3.40% | 3.03% | 2.67% | 2.12% | 1.96% | 2.25% | 2.38% | 2.53% | 2.56% | 2.80% | 2.28% | 2.72% | 3.02% | 1.72% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,364,000K ÷ $20,383,000K
= 6.69%
ServiceNow Inc's operating return on assets (Operating ROA) has shown a fluctuating trend over the specified time period. The Operating ROA started at 1.72% as of March 31, 2020, indicating that the company generated $0.0172 in operating income for every dollar of assets employed.
Subsequently, the Operating ROA increased to 3.02% by June 30, 2020, demonstrating improved efficiency in asset utilization. The metric then fluctuated between 2.28% to 2.80% throughout 2020 and 2021 before recording a slight decline to 1.96% as of June 30, 2022.
After this dip, the Operating ROA showed a positive trajectory, steadily increasing to 6.69% as of December 31, 2024. This upward trend suggests that ServiceNow Inc effectively improved its operational performance relative to its asset base, possibly by enhancing productivity, cost controls, or revenue generation to drive profitability.
The Operating ROA reaching 6.69% as of December 31, 2024, indicates that the company generated $0.0669 of operating income for each dollar of its assets, reflecting a strong performance in utilizing its assets efficiently to drive earnings.
Peer comparison
Dec 31, 2024