ServiceNow Inc (NOW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,628,000 | 5,032,000 | 3,695,000 | 2,834,000 | 2,127,000 |
| ROE | 22.69% | 6.46% | 6.22% | 4.20% | 29.48% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,731,000K ÷ $7,628,000K
= 22.69%
ServiceNow Inc's return on equity (ROE) has exhibited fluctuating trends over the past five years. ROE, a measure of a company's profitability in relation to shareholder equity, stood at 22.69% at the end of 2023, marking a significant increase from the previous year's 6.46%. This substantial improvement indicates that the company utilized its equity more efficiently to generate profit. In 2022, ROE experienced a slight uptick from 6.22% to 6.46%, reflecting a modest improvement in profitability and efficiency in the utilization of shareholder equity. However, the ROE in 2020 and 2021 was relatively lower at 4.18% and 6.22% respectively, suggesting less efficient utilization of equity in generating profits. Notably, the highest ROE of 29.45% was recorded in 2019, signifying exceptional profitability and efficient use of shareholder equity. Overall, the upward trend in ROE from 2021 to 2023 indicates improved profitability and effective use of equity, although there were fluctuations in the intervening years.
Peer comparison
Dec 31, 2023