ServiceNow Inc (NOW)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	9,609,000	7,628,000	5,032,000	3,695,000	2,834,000
Debt-to-capital ratio		0.13	0.16	0.23	0.29	0.37

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,489,000K ÷ ($1,489,000K + $9,609,000K)
= 0.13

The debt-to-capital ratio for ServiceNow Inc has shown a declining trend over the past five years, decreasing from 0.37 as of December 31, 2020, to 0.13 as of December 31, 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments in relation to its total capital. A decreasing trend in the debt-to-capital ratio generally suggests improved financial health and reduced financial risk for the company. This could be beneficial for the company in terms of lower interest expenses and better access to capital markets. Overall, the decreasing trend in ServiceNow Inc's debt-to-capital ratio indicates a positive development in the company's financial leverage position.