ServiceNow Inc (NOW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 9,609,000 | 9,290,000 | 8,666,000 | 8,107,000 | 7,628,000 | 7,182,000 | 6,926,000 | 5,600,000 | 5,032,000 | 4,523,000 | 4,194,000 | 3,997,000 | 3,695,000 | 3,534,000 | 3,275,000 | 3,037,000 | 2,834,000 | 2,674,000 | 2,479,000 | 2,266,000 |
| ROE | 14.83% | 14.38% | 13.22% | 23.78% | 22.69% | 22.08% | 20.56% | 7.14% | 6.46% | 4.44% | 4.39% | 5.58% | 6.22% | 6.26% | 5.22% | 5.04% | 4.20% | 26.21% | 29.39% | 29.86% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,425,000K ÷ $9,609,000K
= 14.83%
ServiceNow Inc's Return on Equity (ROE) has shown fluctuations over the years based on the provided data. The ROE was relatively high in the early quarters of 2020, ranging from 26.21% to 29.86%. However, there was a significant drop in ROE in the latter part of 2020, reaching as low as 4.20%. This decline continued into the first half of 2021 but started to pick up slightly in the later part of the year.
Throughout 2022 and the first half of 2023, the ROE stayed relatively low, ranging between 4.39% and 7.14%. However, there was a notable improvement in the second half of 2023 and into 2024, with ROE increasing to levels between 13.22% and 23.78%. This improvement suggests that the company may have made strategic changes or improvements in its operations or financial management during this period.
The fluctuation in ROE indicates varying levels of profitability and efficiency in generating returns for shareholders. It is essential for investors and stakeholders to monitor these trends to assess the company's financial performance and its ability to generate value from shareholders' equity.
Peer comparison
Dec 31, 2024