ServiceNow Inc (NOW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 79.18% | 79.24% | 79.07% | 78.87% | 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% |
| Operating profit margin | 12.42% | 12.04% | 10.78% | 10.02% | 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% |
| Pretax margin | 15.82% | 15.50% | 14.11% | 13.14% | 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% |
| Net profit margin | 12.97% | 12.77% | 11.51% | 20.34% | 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% |
ServiceNow Inc has shown a consistent improvement in its profitability ratios over the years. The gross profit margin increased from 77.60% as of March 31, 2020 to 79.18% as of December 31, 2024, indicating efficient cost management and pricing strategies.
The operating profit margin also witnessed significant growth, rising from 2.87% on March 31, 2020 to 12.42% on December 31, 2024. This suggests that the company has been able to control its operating expenses effectively while generating higher revenues.
Furthermore, the pretax margin increased steadily from 3.40% on March 31, 2020 to 15.82% on December 31, 2024. This indicates that ServiceNow Inc has been able to improve its profitability before accounting for taxes, showcasing operational efficiency and revenue growth.
In terms of net profit margin, the company saw fluctuations initially but then displayed a consistent upward trend from 17.76% on June 30, 2023 to 12.97% on December 31, 2024. This reflects the company's ability to generate higher net income relative to its total revenue, potentially driven by effective cost controls and revenue growth strategies.
Overall, ServiceNow Inc's profitability ratios demonstrate a positive trajectory, highlighting the company's ability to enhance profitability through efficient cost management, revenue growth, and operational effectiveness.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.69% | 6.84% | 5.89% | 5.41% | 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% |
| Return on assets (ROA) | 6.99% | 7.25% | 6.29% | 10.99% | 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% |
| Return on total capital | 12.29% | 11.69% | 10.57% | 9.90% | 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% |
| Return on equity (ROE) | 14.83% | 14.38% | 13.22% | 23.78% | 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% |
ServiceNow Inc's profitability ratios show positive trends over the last few years. The Operating Return on Assets (Operating ROA) has been steadily increasing from 1.72% on March 31, 2020, to 6.69% on December 31, 2024. This indicates that ServiceNow is generating more operating income from its assets over time.
Similarly, the Return on Assets (ROA) has shown improvements, fluctuating initially but ultimately increasing from 1.37% on December 31, 2020, to 6.99% on December 31, 2024. This reveals that the company is becoming more efficient in utilizing its total assets to generate profits.
Moreover, the Return on Total Capital has been on an upward trajectory, rising from 4.09% on December 31, 2020, to 12.29% on December 31, 2024. This indicates that ServiceNow is not only enhancing its profitability but also optimizing its capital structure effectively.
Lastly, the Return on Equity (ROE) has shown a positive trend, increasing from 4.20% on December 31, 2020, to 14.83% on December 31, 2024. This signifies that the company is rewarding its shareholders with better returns on their equity investments.
Overall, ServiceNow's profitability ratios demonstrate a consistent improvement in operational efficiency, asset utilization, capital structure optimization, and shareholder value creation over the specified period.