ServiceNow Inc (NOW)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,383,000 | 18,434,000 | 18,207,000 | 17,544,000 | 17,387,000 | 15,091,000 | 14,923,000 | 13,614,000 | 13,299,000 | 11,106,000 | 11,102,000 | 10,993,000 | 10,798,000 | 9,478,000 | 9,187,000 | 8,822,000 | 8,715,000 | 7,705,460 | 6,521,310 | 6,197,420 |
| Total stockholders’ equity | US$ in thousands | 9,609,000 | 9,290,000 | 8,666,000 | 8,107,000 | 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 |
| Financial leverage ratio | 2.12 | 1.98 | 2.10 | 2.16 | 2.28 | 2.10 | 2.15 | 2.43 | 2.64 | 2.46 | 2.65 | 2.75 | 2.92 | 2.68 | 2.81 | 2.90 | 3.08 | 2.88 | 2.63 | 2.73 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,383,000K ÷ $9,609,000K
= 2.12
The financial leverage ratio of ServiceNow Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio indicates the company's level of debt relative to its equity.
The trend in the financial leverage ratio shows that it increased from 2.73 as of March 31, 2020, to a peak of 3.08 as of December 31, 2020. This increase might suggest that the company took on more debt during this period, which could potentially increase the financial risk.
Subsequently, the ratio decreased to 2.10 by September 30, 2024, possibly indicating the company's efforts to reduce its debt levels or increase its equity. A lower financial leverage ratio generally implies a lower level of financial risk, as the company relies less on debt financing.
Overall, monitoring the financial leverage ratio of ServiceNow Inc is essential for assessing its capital structure and financial risk management. Investors and stakeholders should pay attention to any significant changes in this ratio as it can impact the company's financial stability and performance.
Peer comparison
Dec 31, 2024