ServiceNow Inc (NOW)
Debt-to-equity 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-equity ratio | 0.15 | 0.20 | 0.30 | 0.40 | 0.58 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,489,000K ÷ $9,609,000K
= 0.15
The debt-to-equity ratio of ServiceNow Inc has shown a decreasing trend over the analyzed period from December 31, 2020, to December 31, 2024. The ratio has decreased from 0.58 in 2020 to 0.15 in 2024, indicating that the company has been reducing its reliance on debt financing in comparison to equity. This trend suggests an improvement in the company's financial structure and a decreasing level of financial risk, as a lower debt-to-equity ratio indicates lower leverage and a stronger financial position. Overall, the declining debt-to-equity ratio reflects positively on ServiceNow Inc's financial stability and management strategy in terms of capital structure.
Peer comparison
Dec 31, 2024