ServiceNow Inc (NOW)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,738,000 | 1,008,000 | 399,000 | 249,000 | 150,000 |
| Revenue | US$ in thousands | 10,984,000 | 8,971,000 | 7,245,000 | 5,896,000 | 4,519,000 |
| Pretax margin | 15.82% | 11.24% | 5.51% | 4.22% | 3.32% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,738,000K ÷ $10,984,000K
= 15.82%
ServiceNow Inc's pretax margin has shown a positive trend over the past five years.
As of December 31, 2020, the company's pretax margin was 3.32%, indicating that for every dollar of revenue generated, the company retained 3.32 cents before accounting for taxes.
By December 31, 2021, the pretax margin improved to 4.22%, reflecting a better efficiency in managing costs and generating higher profits relative to revenue.
In the following years, the pretax margin continued to increase significantly, reaching 5.51% by December 31, 2022, 11.24% by December 31, 2023, and 15.82% by December 31, 2024.
This progressive growth in the pretax margin suggests that ServiceNow Inc has been effectively controlling its expenses and operating more efficiently over the years, resulting in higher profitability and potentially enhanced shareholder value.
Peer comparison
Dec 31, 2024