ServiceNow Inc (NOW)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	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	42,000	13,889	-32,867	-37,856
Total assets	US$ in thousands	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	6,022,430	4,756,810	4,602,700	4,398,900
Operating ROA		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%	0.70%	0.29%	-0.71%	-0.86%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $762,000K ÷ $17,387,000K
= 4.38%

To analyze ServiceNow Inc's operating return on assets (operating ROA), we can see that the ratio has been consistently increasing over the past eight quarters. The operating ROA has shown an upward trend, indicating an improvement in the company's ability to generate operating income from its assets.

The operating ROA increased from 2.25% in March 2022 to 4.38% in December 2023, representing a steady improvement in the company's operational efficiency and profitability relative to its asset base.

This trend suggests that ServiceNow Inc has been effectively utilizing its assets to generate operating income, which is a positive indicator of the company's operational performance and efficiency in utilizing its resources.

Overall, the increasing trend of the operating ROA reflects positively on ServiceNow Inc's ability to generate operating income from its assets, showcasing improved operational efficiency and profitability over the specified period.