ServiceNow Inc (NOW)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.13 | 0.13 | 0.14 | 0.16 | 0.16 | 0.18 | 0.19 | 0.22 | 0.11 | 0.11 | 0.12 | 0.14 | 0.15 | 0.15 |
| Debt-to-capital ratio | 0.16 | 0.17 | 0.18 | 0.21 | 0.23 | 0.25 | 0.26 | 0.27 | 0.29 | 0.30 | 0.31 | 0.35 | 0.37 | 0.39 | 0.22 | 0.24 | 0.25 | 0.32 | 0.35 | 0.36 |
| Debt-to-equity ratio | 0.20 | 0.21 | 0.21 | 0.27 | 0.30 | 0.33 | 0.35 | 0.37 | 0.40 | 0.42 | 0.45 | 0.53 | 0.58 | 0.64 | 0.28 | 0.31 | 0.33 | 0.48 | 0.54 | 0.56 |
| Financial leverage ratio | 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 | 2.83 | 3.33 | 3.65 | 3.68 |
The solvency ratios for ServiceNow Inc indicate the company's ability to meet its long-term financial obligations and the extent to which its operations are financed by debt.
The debt-to-assets ratio has remained relatively stable at around 0.10 to 0.14 over the past eight quarters, indicating that the company's total debt as a proportion of its total assets has not changed significantly.
The debt-to-capital ratio, which measures the proportion of a company's capital that is financed through debt, has shown a gradual increase from 0.16 to 0.28 over the same period. This suggests that the company has been increasingly relying on debt to finance its operations.
Similarly, the debt-to-equity ratio has exhibited an upward trend, rising from 0.20 to 0.39. This signifies a higher reliance on debt compared to equity for funding the company's activities.
The financial leverage ratio, which reflects the proportion of the company's assets that are financed by debt, has fluctuated but generally trended upward from 2.10 to 2.75. This indicates an increasing level of financial risk as the company takes on more debt to support its operations.
In summary, the trend in these solvency ratios suggests that ServiceNow Inc has been progressively relying more on debt financing, which may lead to increased financial risk and higher interest expenses in the long term.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 31.75 | 27.28 | 20.78 | 17.74 | 15.78 | 10.19 | 9.23 | 9.70 | 9.89 | 8.97 | 7.30 | 7.48 | 5.55 | 6.15 | 7.21 | 4.80 | 3.07 | 2.05 | 0.49 | 0.02 |
To analyze ServiceNow Inc's interest coverage, we will focus on the trend of the interest coverage ratio from the available data:
1. In the last available quarter, ending December 31, 2022, the interest coverage ratio was 13.15. This indicates that the company's operating income was sufficient to cover its interest expenses 13.15 times over.
2. Prior to that, the interest coverage ratio declined from 8.70 in September 2022 to 8.38 in June 2022, and then slightly increased to 9.15 in March 2022.
3. Unfortunately, the interest coverage for the most recent quarters in 2023 is not available, making it difficult to provide a comprehensive analysis of the trend for the current year.
Overall, the data suggests that ServiceNow Inc's interest coverage has generally been healthy, as the company's operating income has been able to cover its interest expenses. However, it would be beneficial to obtain the latest figures to assess the current financial health of the company.