ServiceNow Inc (NOW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 78.59% | 78.52% | 78.50% | 78.45% | 78.29% | 77.86% | 77.55% | 77.27% | 77.07% | 77.27% | 77.59% | 78.01% | 78.16% | 78.23% | 78.06% | 77.60% | 76.99% | 76.63% | 76.41% | 76.31% |
| Operating profit margin | 8.49% | 7.64% | 6.32% | 5.41% | 4.90% | 3.40% | 3.30% | 3.95% | 4.36% | 4.34% | 4.54% | 5.11% | 4.40% | 4.96% | 4.97% | 2.87% | 1.21% | 0.43% | -1.09% | -1.35% |
| 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% |
| Net profit margin | 19.30% | 18.72% | 17.76% | 5.25% | 4.49% | 2.91% | 2.79% | 3.56% | 3.90% | 4.00% | 3.31% | 3.17% | 2.63% | 16.61% | 18.43% | 18.20% | 18.12% | 1.09% | 0.09% | -1.38% |
ServiceNow Inc's profitability ratios reflect positive trends over the periods. The company's gross profit margin has remained consistently high, ranging from 77.26% to 78.59%, indicating efficient cost management and pricing strategies.
Similarly, the operating profit margin has displayed an upward trend, increasing from 3.30% to 8.49% over the observed periods, indicating improved operational efficiency and effective cost control.
The pretax margin also reveals an upward trajectory, reaching 11.24% in the most recent period, signifying enhanced profitability before accounting for taxes.
Notably, the net profit margin has seen substantial improvement, rising to 19.30% in the latest period. This significant increase reflects the company's ability to generate higher profits relative to its revenue, showcasing effective cost management and operational efficiency.
Overall, these profitability ratios indicate that ServiceNow Inc has been successful in improving its operational and cost efficiency, resulting in enhanced overall profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 9.96% | 10.51% | 9.54% | 2.94% | 2.44% | 1.81% | 1.66% | 2.03% | 2.13% | 2.33% | 1.86% | 1.73% | 1.37% | 9.10% | 11.17% | 10.92% | 10.41% | 0.74% | 0.06% | -0.88% |
| Return on total capital | 8.36% | 7.87% | 6.67% | 6.76% | 6.54% | 4.58% | 4.23% | 4.78% | 5.35% | 5.18% | 4.60% | 4.99% | 4.09% | 4.63% | 7.49% | 5.38% | 3.52% | 3.23% | 0.93% | 0.04% |
| Return on equity (ROE) | 22.69% | 22.08% | 20.56% | 7.14% | 6.46% | 4.44% | 4.39% | 5.58% | 6.22% | 6.26% | 5.22% | 5.04% | 4.20% | 26.21% | 29.39% | 29.86% | 29.48% | 2.45% | 0.22% | -3.25% |
ServiceNow Inc's profitability ratios indicate a positive trend over the period being analyzed. The company's operating return on assets (Operating ROA) has steadily increased from 2.25% in March 2022 to 4.38% in December 2023, indicating an improvement in operating efficiency. This suggests that the company has been able to generate more operating income per dollar of assets.
Similarly, the return on assets (ROA) has shown a consistent improvement, reaching 9.96% in December 2023, compared to 2.03% in March 2022. This indicates that the company's net income has risen in relation to its total assets, reflecting stronger overall profitability.
The return on total capital has also displayed a positive trend, increasing from 4.44% in March 2022 to 8.36% in December 2023. This suggests that the company has been able to generate higher returns from its total invested capital, which includes both equity and debt.
Furthermore, the return on equity (ROE) has exhibited a similar upward trajectory, reaching 22.69% in December 2023, indicating that the company has been increasingly effective in generating profits from the shareholders' equity.
Overall, the profitability ratios demonstrate that ServiceNow Inc has shown consistent improvement in generating returns from its assets, capital, and equity, reflecting positively on its operational and financial performance.