ServiceNow Inc (NOW)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,364,000 | 762,000 | 426,000 | 277,000 | 183,000 |
| Long-term debt | US$ in thousands | 1,489,000 | 1,488,000 | 1,486,000 | 1,484,000 | 1,640,000 |
| Total stockholders’ equity | US$ in thousands | 9,609,000 | 7,628,000 | 5,032,000 | 3,695,000 | 2,834,000 |
| Return on total capital | 12.29% | 8.36% | 6.54% | 5.35% | 4.09% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,364,000K ÷ ($1,489,000K + $9,609,000K)
= 12.29%
ServiceNow Inc's return on total capital has shown a positive trend over the past five years, increasing from 4.09% as of December 31, 2020, to 12.29% as of December 31, 2024. This indicates that the company has been able to generate a higher return on the total capital employed in its operations, reflecting improved financial performance and efficiency in utilizing its resources. The progressive increase in the return on total capital demonstrates that ServiceNow Inc has been able to generate more profit relative to the capital invested, which is a favorable indicator of the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2024