ServiceNow Inc (NOW)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,488,000 | 1,486,000 | 1,484,000 | 1,640,000 | 694,981 |
| Total assets | US$ in thousands | 17,387,000 | 13,299,000 | 10,798,000 | 8,715,000 | 6,022,430 |
| Debt-to-assets ratio | 0.09 | 0.11 | 0.14 | 0.19 | 0.12 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,488,000K ÷ $17,387,000K
= 0.09
The debt-to-assets ratio of ServiceNow Inc has exhibited a decreasing trend from 0.19 in December 31, 2020 to 0.09 in December 31, 2023. This indicates that the company has been reducing its reliance on debt to finance its assets over the years, which could be seen as a positive trend. A lower ratio implies that a smaller portion of the company's assets is financed by debt, suggesting lower financial risk and potentially greater financial flexibility. This may be a positive signal to investors and creditors, reflecting the company's ability to manage its financial obligations effectively. However, it is important to consider the specific industry and market dynamics when interpreting this ratio, as different industries may have varying optimal levels of debt utilization.
Peer comparison
Dec 31, 2023