ServiceNow Inc (NOW)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 7,628,000 | 5,032,000 | 3,695,000 | 2,834,000 | 2,127,000 |
| Debt-to-equity ratio | 0.20 | 0.30 | 0.40 | 0.58 | 0.33 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,488,000K ÷ $7,628,000K
= 0.20
The debt-to-equity ratio of ServiceNow Inc has shown a declining trend over the past five years, decreasing from 0.58 in 2019 to 0.20 in 2023. This indicates that the company has been relying less on debt financing relative to equity financing. A lower debt-to-equity ratio suggests a lower level of financial risk and greater solvency, as the company is using less leverage to finance its operations. This trend may be viewed positively by investors and creditors, as it signifies a stronger financial position and reduced vulnerability to economic downturns. However, it's important to consider the specific circumstances and industry benchmarks when assessing the implications of the debt-to-equity ratio for ServiceNow Inc.
Peer comparison
Dec 31, 2023