ServiceNow Inc (NOW)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,425,000 | 1,731,000 | 325,000 | 230,000 | 119,000 |
| Total assets | US$ in thousands | 20,383,000 | 17,387,000 | 13,299,000 | 10,798,000 | 8,715,000 |
| ROA | 6.99% | 9.96% | 2.44% | 2.13% | 1.37% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,425,000K ÷ $20,383,000K
= 6.99%
ServiceNow Inc's return on assets (ROA) has shown a positive trend over the years. The ROA increased from 1.37% in December 31, 2020, to 2.13% in December 31, 2021, indicating an improvement in the company's ability to generate profit from its assets. This trend continued with further growth, reaching 2.44% in December 31, 2022.
The most significant increase in ROA occurred in December 31, 2023, where it surged to 9.96%, showcasing a substantial improvement in the efficiency of asset utilization by the company. However, in December 31, 2024, the ROA decreased to 6.99%, but it still remained at a relatively high level compared to the initial years.
Overall, the upward trend in ROA reflects ServiceNow Inc's ability to effectively utilize its assets to generate earnings and create value for its shareholders.
Peer comparison
Dec 31, 2024