ServiceNow Inc (NOW)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,489,000 | 1,488,000 | 1,486,000 | 1,484,000 | 1,640,000 |
| Total assets | US$ in thousands | 20,383,000 | 17,387,000 | 13,299,000 | 10,798,000 | 8,715,000 |
| Debt-to-assets ratio | 0.07 | 0.09 | 0.11 | 0.14 | 0.19 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,489,000K ÷ $20,383,000K
= 0.07
ServiceNow Inc's debt-to-assets ratio has shown a consistent decline over the past five years, indicating a decreasing reliance on debt financing relative to its total assets. The ratio decreased from 0.19 in December 31, 2020, to 0.07 in December 31, 2024. This trend suggests that the company's financial position has improved in terms of leverage, with a higher proportion of assets being financed by equity rather than debt. Lower debt-to-assets ratios generally reflect a healthier balance sheet and reduced financial risk. ServiceNow Inc's decreasing debt-to-assets ratio may signify prudent financial management and a stronger ability to meet its obligations using internal resources.
Peer comparison
Dec 31, 2024