ServiceNow Inc (NOW)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,731,000 | 325,000 | 230,000 | 119,000 | 627,000 |
| Total assets | US$ in thousands | 17,387,000 | 13,299,000 | 10,798,000 | 8,715,000 | 6,022,430 |
| ROA | 9.96% | 2.44% | 2.13% | 1.37% | 10.41% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,731,000K ÷ $17,387,000K
= 9.96%
ServiceNow Inc's return on assets (ROA) has shown fluctuations over the past five years. In 2019, the ROA was notably high at 10.41%, but it dropped to 1.36% in 2020. However, the company saw a significant improvement in ROA in subsequent years, reaching 2.13% in 2021, 2.44% in 2022, and finally 9.96% in 2023. This improvement suggests that the company has been more efficient in generating profits from its assets in recent years, particularly in 2023. Analyzing the change in ROA over the years, it seems that ServiceNow Inc has been able to enhance its asset utilization and overall profitability, especially when compared to the lower ROA in 2020. This trend indicates a positive performance in terms of utilizing its assets to generate profits, which can be a promising sign for investors and stakeholders.
Peer comparison
Dec 31, 2023