ServiceNow Inc (NOW)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,364,000 | 762,000 | 426,000 | 277,000 | 183,000 |
| Interest expense | US$ in thousands | 23,000 | 25,000 | 27,000 | 28,000 | 33,000 |
| Interest coverage | 59.30 | 30.48 | 15.78 | 9.89 | 5.55 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,364,000K ÷ $23,000K
= 59.30
ServiceNow Inc's interest coverage ratio has shown a positive trend over the past few years, indicating the company's improving ability to meet its interest obligations from its operating profits. The interest coverage ratio increased from 5.55 in December 2020 to 9.89 in December 2021, then further improved to 15.78 in December 2022, and significantly rose to 30.48 in December 2023, and finally surged to 59.30 in December 2024. This steady growth in the interest coverage ratio suggests that ServiceNow Inc has a comfortable buffer to cover its interest expenses, which is a positive sign for creditors and investors. Overall, the company's interest coverage has strengthened consistently, reflecting its robust financial health and operational efficiency.
Peer comparison
Dec 31, 2024