ServiceNow Inc (NOW)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,364,000 | 1,260,000 | 1,073,000 | 950,000 | 762,000 | 682,000 | 561,000 | 479,000 | 426,000 | 275,000 | 240,000 | 262,000 | 277,000 | 260,145 | 219,003 | 232,003 | 183,003 | 202,859 | 237,771 | 159,725 |
| Long-term debt | US$ in thousands | 1,489,000 | 1,489,000 | 1,488,000 | 1,488,000 | 1,488,000 | 1,487,000 | 1,487,000 | 1,486,000 | 1,486,000 | 1,485,000 | 1,485,000 | 1,484,000 | 1,484,000 | 1,484,000 | 1,483,000 | 1,611,000 | 1,640,000 | 1,705,530 | 696,123 | 701,288 |
| 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 |
| Return on total capital | 12.29% | 11.69% | 10.57% | 9.90% | 8.36% | 7.87% | 6.67% | 6.76% | 6.54% | 4.58% | 4.23% | 4.78% | 5.35% | 5.18% | 4.60% | 4.99% | 4.09% | 4.63% | 7.49% | 5.38% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 some fluctuations over the years. The company's return on total capital ranged from a low of 4.09% as of December 31, 2020, to a high of 12.29% as of December 31, 2024. Overall, the trend indicates an improvement in the return on total capital, with a notable increase from around 5% in early 2020 to over 12% by the end of 2024. This improvement suggests that the company has been more efficient in generating profits relative to the total capital employed in its operations. It is essential to monitor this ratio over time to evaluate the company's capital allocation strategies and operational efficiency.
Peer comparison
Dec 31, 2024