ServiceNow Inc (NOW)

Solvency ratios

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
Debt-to-assets ratio 0.07 0.08 0.08 0.08 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
Debt-to-capital ratio 0.13 0.14 0.15 0.16 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
Debt-to-equity ratio 0.15 0.16 0.17 0.18 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
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

Over the period under consideration, ServiceNow Inc has demonstrated a stable and improving solvency position based on its solvency ratios. The Debt-to-assets ratio has consistently decreased from 0.11 as of March 31, 2020, to 0.07 as of December 31, 2024, indicating the company's increasing ability to cover its long-term obligations with its assets.

Similarly, the Debt-to-capital ratio has shown a declining trend, moving from 0.24 on March 31, 2020, to 0.13 on December 31, 2024. This suggests that the company has been reducing its reliance on debt financing relative to its total capital structure.

Furthermore, the Debt-to-equity ratio has exhibited a downward trajectory from 0.31 as of March 31, 2020, to 0.15 as of December 31, 2024. This indicates that the company's equity financing has been growing compared to its debt obligations, enhancing its financial stability.

The Financial leverage ratio, which is a measure of the company's total assets to equity, has also decreased over the period from 2.73 as of March 31, 2020, to 2.12 as of December 31, 2024. This signifies that the company's reliance on debt to finance its assets has decreased, reflecting a healthier leverage position.

In conclusion, ServiceNow Inc's solvency ratios show a positive trend with decreasing debt ratios and improving financial leverage, indicating a strengthening financial position and reduced risk of insolvency.

Coverage ratios

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
Interest coverage 59.30 52.50 44.71 39.58 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

ServiceNow Inc's interest coverage ratio has been showing a positive trend over the past few years, indicating the company's ability to meet its interest obligations. The interest coverage ratio has increased consistently from 4.80 in March 2020 to 59.30 in December 2024. This improvement suggests that the company's operating income is more than sufficient to cover its interest expenses, providing a buffer against potential financial distress.

The steady increase in the interest coverage ratio reflects a strengthening financial position for ServiceNow Inc, indicating improved financial health and stability. A higher interest coverage ratio is generally considered favorable, as it demonstrates a company's capacity to service its debt comfortably. The company's interest coverage ratio has risen significantly, which suggests that it has been efficiently managing its interest payments relative to its earnings.

Overall, the consistently rising trend in ServiceNow Inc's interest coverage ratio signifies a positive financial performance and implies that the company is in a solid position to meet its debt obligations. Investors and stakeholders may perceive this as a positive indicator of the company's financial strength and ability to manage its debt effectively.

See also:

ServiceNow Inc Solvency Ratios (Quarterly Data)