ServiceNow Inc (NOW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 9,609,000 | 7,628,000 | 5,032,000 | 3,695,000 | 2,834,000 |
| ROE | 14.83% | 22.69% | 6.46% | 6.22% | 4.20% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,425,000K ÷ $9,609,000K
= 14.83%
ServiceNow Inc's return on equity (ROE) has shown an upward trend over the years, indicating an improvement in the company's efficiency in generating profits from its shareholders' equity. The ROE increased from 4.20% in December 2020 to 6.22% in December 2021, and further rose to 6.46% in December 2022. The significant leap in ROE to 22.69% in December 2023 suggests a substantial increase in profitability and effective utilization of equity. However, there was a slight decrease in ROE to 14.83% by December 2024, which could be indicative of changing business conditions or strategies. Overall, the company's ROE performance reflects a positive trajectory with intermittent fluctuations, demonstrating its ability to create value for shareholders through operational efficiency and profitability.
Peer comparison
Dec 31, 2024