ServiceNow Inc (NOW)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	1,008,000	399,000	249,000	150,000	67,000
Revenue	US$ in thousands	8,971,000	7,245,000	5,896,000	4,519,000	3,460,000
Pretax margin		11.24%	5.51%	4.22%	3.32%	1.94%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $1,008,000K ÷ $8,971,000K
= 11.24%

The pretax margin of ServiceNow Inc has shown a consistent upward trend over the last five years, reflecting improved efficiency in managing operating expenses and generating profits before taxes. The pretax margin increased from 1.94% in 2019 to 11.24% in 2023, indicating a significant enhancement in the company's ability to generate earnings from its operations. This upward trajectory suggests effective cost management and revenue growth, which bodes well for the company's overall financial performance and potential profitability.