ServiceNow Inc (NOW)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,008,000	844,000	647,000	502,000	399,000	248,000	214,000	235,000	249,000	231,145	189,003	201,003	150,003	169,859	204,771	126,456	67,000	34,954	-18,586	-43,117
Revenue (ttm)	US$ in thousands	8,971,000	8,474,000	8,017,000	7,619,000	7,245,000	6,919,000	6,600,000	6,257,000	5,895,000	5,531,000	5,171,000	4,833,000	4,519,000	4,220,337	3,954,170	3,717,074	3,460,000	3,224,104	3,011,368	2,808,520
Pretax margin		11.24%	9.96%	8.07%	6.59%	5.51%	3.58%	3.24%	3.76%	4.22%	4.18%	3.66%	4.16%	3.32%	4.02%	5.18%	3.40%	1.94%	1.08%	-0.62%	-1.54%

December 31, 2023 calculation

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

ServiceNow Inc's pretax margin, a key profitability ratio, has fluctuated over the past eight quarters. The trend shows a consistent increase, starting at 3.24% in March 2022 and reaching its peak at 11.24% in December 2023. This improvement indicates an enhancement in the company's ability to generate profits before considering tax expenses. It suggests that ServiceNow has been able to effectively manage its operating expenses and generate higher operating profits. This trend reflects positively on the company's overall financial performance and operational efficiency.