ServiceNow Inc (NOW)

Debt-to-assets ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	694,981	686,516	678,145	669,875
Total assets	US$ in thousands	17,387,000	15,091,000	14,923,000	13,614,000	13,299,000	11,106,000	11,102,000	10,993,000	10,798,000	9,478,000	9,187,000	8,822,000	8,715,000	7,705,460	6,521,310	6,197,420	6,022,430	4,756,810	4,602,700	4,398,900
Debt-to-assets ratio		0.09	0.10	0.10	0.11	0.11	0.13	0.13	0.13	0.14	0.16	0.16	0.18	0.19	0.22	0.11	0.11	0.12	0.14	0.15	0.15

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 for ServiceNow Inc has shown a relatively stable trend over the past eight quarters, hovering around 0.09 to 0.14. This ratio indicates the proportion of the company's assets that are financed by debt. A lower ratio generally suggests lower financial risk, as it signifies that a smaller portion of the company's assets is funded by debt. On the other hand, a higher ratio can indicate a higher level of leverage and, hence, higher financial risk. ServiceNow Inc's consistent range of 0.09 to 0.14 suggests a conservative approach to leveraging, which may indicate a lower level of financial risk in the company's operations. However, it is important to consider this ratio alongside other financial metrics and industry benchmarks for a comprehensive assessment of the company's financial health and risk profile.