ServiceNow Inc (NOW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,383,000 | 17,387,000 | 13,299,000 | 10,798,000 | 8,715,000 |
| Total stockholders’ equity | US$ in thousands | 9,609,000 | 7,628,000 | 5,032,000 | 3,695,000 | 2,834,000 |
| Financial leverage ratio | 2.12 | 2.28 | 2.64 | 2.92 | 3.08 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,383,000K ÷ $9,609,000K
= 2.12
ServiceNow Inc's financial leverage ratio has shown a declining trend over the years, decreasing from 3.08 on December 31, 2020, to 2.12 on December 31, 2024. This indicates that the company's reliance on debt financing has reduced over the years, potentially improving its financial stability and flexibility. A lower financial leverage ratio suggests that the company has a lower level of debt relative to its equity, which can be seen as a positive signal by investors and creditors. ServiceNow's management of its leverage ratio reflects a prudent approach towards balancing its capital structure and minimizing financial risk.
Peer comparison
Dec 31, 2024