ServiceNow Inc (NOW)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,425,000 | 1,336,000 | 1,146,000 | 1,928,000 | 1,731,000 | 1,586,000 | 1,424,000 | 400,000 | 325,000 | 201,000 | 184,000 | 223,000 | 230,000 | 221,145 | 171,003 | 153,003 | 119,003 | 700,884 | 728,624 | 676,545 |
| Total assets | US$ in thousands | 20,383,000 | 18,434,000 | 18,207,000 | 17,544,000 | 17,387,000 | 15,091,000 | 14,923,000 | 13,614,000 | 13,299,000 | 11,106,000 | 11,102,000 | 10,993,000 | 10,798,000 | 9,478,000 | 9,187,000 | 8,822,000 | 8,715,000 | 7,705,460 | 6,521,310 | 6,197,420 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,425,000K ÷ $20,383,000K
= 6.99%
ServiceNow Inc's return on assets (ROA) fluctuated over the period from March 31, 2020, to December 31, 2024. The ROA started at a relatively high level of 10.92% in March 2020, showing efficient utilization of assets to generate profits. However, there was a decline in the ROA by the end of 2020, dropping to 1.37%. This sharp decrease may indicate challenges in asset management or a decrease in profitability relative to the assets employed.
Subsequently, there was a gradual improvement in ROA in 2021 and 2022, reaching 2.44% by the end of December 2022. This increase suggests that the company was able to enhance its profitability in relation to its assets during this period. However, the ROA experienced a significant spike to 10.99% by March 2024. This dramatic rise may indicate a period of high profitability relative to assets, potentially driven by strategic decisions or improved operational efficiency.
Nonetheless, there was a notable decline in ROA in the following quarters of 2024, dropping to 6.99% by December 31, 2024. This decrease could signal potential challenges in maintaining profitability in relation to the assets deployed during this time.
Overall, ServiceNow Inc's ROA experienced fluctuations over the period, indicating varying levels of efficiency in generating profits from its assets. Analyzing these trends can provide insights into the company's asset utilization and profitability performance over time.
Peer comparison
Dec 31, 2024