ServiceNow Inc (NOW)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 762,000 | 426,000 | 277,000 | 183,000 | 100,000 |
| Interest expense | US$ in thousands | 25,000 | 27,000 | 28,000 | 33,000 | 33,000 |
| Interest coverage | 30.48 | 15.78 | 9.89 | 5.55 | 3.03 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $762,000K ÷ $25,000K
= 30.48
Based on the provided data, the interest coverage ratio for ServiceNow Inc is not consistently available for all years. However, for the years 2022 and 2021, the interest coverage ratios were 13.15 and 9.18, respectively. The higher the interest coverage ratio, the better, as it indicates the company's ability to meet its interest obligations. In 2022, the company demonstrated a stronger ability to cover its interest expense compared to 2021, which suggests an improvement in its financial health. It is noted that the data for 2020 and 2023 is not available, and thus a comprehensive trend analysis cannot be performed for the entire period.
Peer comparison
Dec 31, 2023