ServiceNow Inc (NOW)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	7,628,000	7,182,000	6,926,000	5,600,000	5,032,000	4,523,000	4,194,000	3,997,000	3,695,000	3,534,000	3,275,000	3,037,000	2,834,000	2,674,000	2,479,000	2,266,000	2,127,000	1,429,470	1,260,950	1,194,950
Debt-to-equity ratio		0.20	0.21	0.21	0.27	0.30	0.33	0.35	0.37	0.40	0.42	0.45	0.53	0.58	0.64	0.28	0.31	0.33	0.48	0.54	0.56

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 been fluctuating over the past eight quarters. The ratio decreased from 0.39 as of March 31, 2022, to 0.20 as of December 31, 2023, indicating a significant reduction in the company's reliance on debt financing in relation to equity. This trend suggests that the company has been effectively managing its debt levels or increasing its equity position, which may be perceived positively by investors and creditors. However, the slight increase in the ratio from 0.20 to 0.27 as of March 31, 2023, warrants attention as it indicates a higher level of debt relative to equity. Overall, the decreasing trend in the debt-to-equity ratio from 0.39 to 0.20 highlights ServiceNow Inc's efforts in maintaining a balanced capital structure.