ServiceNow Inc (NOW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 17,387,000 | 13,299,000 | 10,798,000 | 8,715,000 | 6,022,430 |
| Total stockholders’ equity | US$ in thousands | 7,628,000 | 5,032,000 | 3,695,000 | 2,834,000 | 2,127,000 |
| Financial leverage ratio | 2.28 | 2.64 | 2.92 | 3.08 | 2.83 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,387,000K ÷ $7,628,000K
= 2.28
The financial leverage ratio of ServiceNow Inc has exhibited a decreasing trend from 3.07 in 2020 to 2.28 in 2023. This indicates a decline in the company's reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests that the company is using less debt relative to its equity, reducing the financial risk and potential volatility associated with high debt levels. This may be seen as a positive indicator of the company's ability to manage its capital structure more efficiently and potentially improve its financial stability. However, it's important to consider the overall context of the company's financial strategy and industry benchmarks before drawing definitive conclusions.
Peer comparison
Dec 31, 2023