Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

ServiceNow Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Federal	36)	2)	—)	—)	—)
State	49)	31)	13)	1)	—)
Foreign	130)	101)	46)	52)	53)
Current provision	215)	134)	59)	53)	53)
Federal	51)	(750)	(1)	(3)	(5)
State	(5)	(135)	(1)	(3)	(1)
Foreign	52)	28)	17)	(28)	(16)
Deferred provision	98)	(857)	15)	(34)	(23)
Provision for (benefit from) income taxes	313)	(723)	74)	19)	31)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Current provision	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	ServiceNow Inc. current provision increased from 2022 to 2023 and from 2023 to 2024.
Deferred provision	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	ServiceNow Inc. deferred provision decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Provision for (benefit from) income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	ServiceNow Inc. provision for (benefit from) income taxes decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

ServiceNow Inc., effective income tax rate (EITR) reconciliation

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective income tax rate	18.01%	-71.73%	18.55%	7.63%	20.57%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	ServiceNow Inc. effective income tax rate decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

ServiceNow Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net operating loss carryforwards	138)	257)	605)	1,061)	882)
Credit carryforwards	458)	476)	388)	318)	236)
Lease liability	171)	184)	178)	152)	115)
Capitalized research and development	434)	324)	262)	—)	—)
Depreciation and amortization	514)	552)	553)	587)	636)
Other	168)	167)	159)	126)	103)
Deferred tax assets	1,883)	1,960)	2,145)	2,244)	1,971)
Valuation allowance	(220)	(196)	(1,228)	(1,326)	(1,129)
Deferred tax assets, less valuation allowance	1,663)	1,764)	917)	918)	842)
Right of use asset	(150)	(165)	(162)	(141)	(106)
Depreciation and amortization	(113)	(90)	—)	—)	—)
Other	(61)	(41)	(129)	(94)	(71)
Deferred tax liabilities	(324)	(296)	(291)	(235)	(176)
Net deferred tax assets (liabilities)	1,339)	1,468)	626)	683)	666)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	ServiceNow Inc. deferred tax assets decreased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets, less valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	ServiceNow Inc. deferred tax assets, less valuation allowance increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	ServiceNow Inc. net deferred tax assets (liabilities) increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

ServiceNow Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred tax assets	1,385)	1,508)	636)	692)	673)
	Deferred tax liabilities	46)	40)	10)	9)	7)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	ServiceNow Inc. deferred tax assets increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	ServiceNow Inc. deferred tax liabilities increased from 2022 to 2023 and from 2023 to 2024.

ServiceNow Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	20,383)	17,387)	13,299)	10,798)	8,715)
Less: Noncurrent deferred tax assets, net	1,385)	1,508)	636)	692)	673)
Total assets (adjusted)	18,998)	15,879)	12,663)	10,106)	8,042)
Adjustment to Total Liabilities
Total liabilities (as reported)	10,774)	9,759)	8,267)	7,103)	5,881)
Less: Noncurrent deferred tax liabilities, net	46)	40)	10)	9)	7)
Total liabilities (adjusted)	10,728)	9,719)	8,257)	7,094)	5,873)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	9,609)	7,628)	5,032)	3,695)	2,834)
Less: Net deferred tax assets (liabilities)	1,339)	1,468)	626)	683)	666)
Stockholders’ equity (adjusted)	8,270)	6,160)	4,406)	3,012)	2,169)
Adjustment to Net Income
Net income (as reported)	1,425)	1,731)	325)	230)	119)
Add: Deferred income tax expense (benefit)	98)	(857)	15)	(34)	(23)
Net income (adjusted)	1,523)	874)	340)	196)	96)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

ServiceNow Inc., Financial Data: Reported vs. Adjusted

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ServiceNow Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	12.97%	19.30%	4.49%	3.90%	2.62%
Adjusted net profit margin	13.87%	9.74%	4.69%	3.32%	2.12%
Total Asset Turnover
Reported total asset turnover	0.54	0.52	0.54	0.55	0.52
Adjusted total asset turnover	0.58	0.56	0.57	0.58	0.56
Financial Leverage
Reported financial leverage	2.12	2.28	2.64	2.92	3.07
Adjusted financial leverage	2.30	2.58	2.87	3.36	3.71
Return on Equity (ROE)
Reported ROE	14.83%	22.69%	6.46%	6.22%	4.18%
Adjusted ROE	18.42%	14.19%	7.72%	6.51%	4.42%
Return on Assets (ROA)
Reported ROA	6.99%	9.96%	2.44%	2.13%	1.36%
Adjusted ROA	8.02%	5.50%	2.68%	1.94%	1.19%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	ServiceNow Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	ServiceNow Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	ServiceNow Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	ServiceNow Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	ServiceNow Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

ServiceNow Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	1,425)	1,731)	325)	230)	119)
Revenues	10,984)	8,971)	7,245)	5,896)	4,519)
Profitability Ratio
Net profit margin¹	12.97%	19.30%	4.49%	3.90%	2.62%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	1,523)	874)	340)	196)	96)
Revenues	10,984)	8,971)	7,245)	5,896)	4,519)
Profitability Ratio
Adjusted net profit margin²	13.87%	9.74%	4.69%	3.32%	2.12%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 1,425 ÷ 10,984 = 12.97%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 1,523 ÷ 10,984 = 13.87%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	ServiceNow Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues	10,984)	8,971)	7,245)	5,896)	4,519)
Total assets	20,383)	17,387)	13,299)	10,798)	8,715)
Activity Ratio
Total asset turnover¹	0.54	0.52	0.54	0.55	0.52
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues	10,984)	8,971)	7,245)	5,896)	4,519)
Adjusted total assets	18,998)	15,879)	12,663)	10,106)	8,042)
Activity Ratio
Adjusted total asset turnover²	0.58	0.56	0.57	0.58	0.56

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 10,984 ÷ 20,383 = 0.54

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 10,984 ÷ 18,998 = 0.58

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	ServiceNow Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	20,383)	17,387)	13,299)	10,798)	8,715)
Stockholders’ equity	9,609)	7,628)	5,032)	3,695)	2,834)
Solvency Ratio
Financial leverage¹	2.12	2.28	2.64	2.92	3.07
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	18,998)	15,879)	12,663)	10,106)	8,042)
Adjusted stockholders’ equity	8,270)	6,160)	4,406)	3,012)	2,169)
Solvency Ratio
Adjusted financial leverage²	2.30	2.58	2.87	3.36	3.71

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 20,383 ÷ 9,609 = 2.12

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 18,998 ÷ 8,270 = 2.30

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	ServiceNow Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	1,425)	1,731)	325)	230)	119)
Stockholders’ equity	9,609)	7,628)	5,032)	3,695)	2,834)
Profitability Ratio
ROE¹	14.83%	22.69%	6.46%	6.22%	4.18%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	1,523)	874)	340)	196)	96)
Adjusted stockholders’ equity	8,270)	6,160)	4,406)	3,012)	2,169)
Profitability Ratio
Adjusted ROE²	18.42%	14.19%	7.72%	6.51%	4.42%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,425 ÷ 9,609 = 14.83%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 1,523 ÷ 8,270 = 18.42%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	ServiceNow Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	1,425)	1,731)	325)	230)	119)
Total assets	20,383)	17,387)	13,299)	10,798)	8,715)
Profitability Ratio
ROA¹	6.99%	9.96%	2.44%	2.13%	1.36%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	1,523)	874)	340)	196)	96)
Adjusted total assets	18,998)	15,879)	12,663)	10,106)	8,042)
Profitability Ratio
Adjusted ROA²	8.02%	5.50%	2.68%	1.94%	1.19%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,425 ÷ 20,383 = 6.99%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 1,523 ÷ 18,998 = 8.02%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	ServiceNow Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

ServiceNow Inc. (NYSE:NOW)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

ServiceNow Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

ServiceNow Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)