Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
ServiceNow Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | ServiceNow Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | ServiceNow Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | ServiceNow Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | ServiceNow Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | ServiceNow Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | ServiceNow Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | ServiceNow Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | ServiceNow Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | ServiceNow Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
ServiceNow Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt, net | —) | —) | 92) | —) | —) | |
| Long-term debt, net, less current portion | 1,488) | 1,486) | 1,484) | 1,640) | 695) | |
| Total debt | 1,488) | 1,486) | 1,576) | 1,640) | 695) | |
| Stockholders’ equity | 7,628) | 5,032) | 3,695) | 2,834) | 2,128) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.20 | 0.30 | 0.43 | 0.58 | 0.33 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Accenture PLC | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.22 | 0.29 | 0.28 | 0.31 | 0.39 | |
| Cadence Design Systems Inc. | 0.19 | 0.27 | 0.13 | 0.14 | 0.16 | |
| CrowdStrike Holdings Inc. | 0.51 | 0.72 | 0.85 | 0.00 | — | |
| International Business Machines Corp. | 2.51 | 2.32 | 2.74 | 2.99 | 3.02 | |
| Intuit Inc. | 0.35 | 0.42 | 0.21 | 0.66 | 0.12 | |
| Microsoft Corp. | 0.31 | 0.39 | 0.50 | 0.62 | 0.77 | |
| Oracle Corp. | 84.33 | — | 16.08 | 5.93 | 2.58 | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.13 | — | |
| Palo Alto Networks Inc. | 1.14 | 17.51 | 5.08 | 2.80 | 0.90 | |
| Salesforce Inc. | 0.20 | 0.19 | 0.07 | 0.09 | 0.22 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | |
| Debt to Equity, Sector | ||||||
| Software & Services | 0.64 | 0.71 | 0.83 | 0.95 | 1.05 | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.66 | 0.70 | 0.83 | 0.97 | 0.98 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 1,488 ÷ 7,628 = 0.20
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | ServiceNow Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
ServiceNow Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt, net | —) | —) | 92) | —) | —) | |
| Long-term debt, net, less current portion | 1,488) | 1,486) | 1,484) | 1,640) | 695) | |
| Total debt | 1,488) | 1,486) | 1,576) | 1,640) | 695) | |
| Current portion of operating lease liabilities | 89) | 96) | 82) | 72) | 53) | |
| Operating lease liabilities, less current portion | 707) | 650) | 556) | 423) | 383) | |
| Total debt (including operating lease liability) | 2,284) | 2,232) | 2,214) | 2,135) | 1,131) | |
| Stockholders’ equity | 7,628) | 5,032) | 3,695) | 2,834) | 2,128) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.30 | 0.44 | 0.60 | 0.75 | 0.53 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.12 | 0.15 | 0.18 | 0.21 | 0.00 | |
| Adobe Inc. | 0.25 | 0.33 | 0.32 | 0.35 | 0.39 | |
| Cadence Design Systems Inc. | 0.24 | 0.34 | 0.18 | 0.20 | 0.22 | |
| CrowdStrike Holdings Inc. | 0.54 | 0.76 | 0.89 | 0.00 | — | |
| International Business Machines Corp. | 2.66 | 2.46 | 2.92 | 3.23 | 3.27 | |
| Intuit Inc. | 0.39 | 0.46 | 0.25 | 0.71 | 0.12 | |
| Microsoft Corp. | 0.39 | 0.47 | 0.58 | 0.69 | 0.84 | |
| Oracle Corp. | 88.84 | — | 16.61 | 6.10 | 2.58 | |
| Palantir Technologies Inc. | 0.07 | 0.10 | 0.11 | 0.30 | — | |
| Palo Alto Networks Inc. | 1.33 | 19.12 | 5.68 | 3.16 | 0.90 | |
| Salesforce Inc. | 0.25 | 0.25 | 0.15 | 0.18 | 0.22 | |
| Synopsys Inc. | 0.11 | 0.12 | 0.13 | 0.14 | 0.03 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.73 | 0.81 | 0.93 | 1.06 | 1.11 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.72 | 0.77 | 0.90 | 1.04 | 1.01 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 2,284 ÷ 7,628 = 0.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | ServiceNow Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
ServiceNow Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt, net | —) | —) | 92) | —) | —) | |
| Long-term debt, net, less current portion | 1,488) | 1,486) | 1,484) | 1,640) | 695) | |
| Total debt | 1,488) | 1,486) | 1,576) | 1,640) | 695) | |
| Stockholders’ equity | 7,628) | 5,032) | 3,695) | 2,834) | 2,128) | |
| Total capital | 9,116) | 6,518) | 5,271) | 4,475) | 2,823) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.16 | 0.23 | 0.30 | 0.37 | 0.25 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Accenture PLC | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.18 | 0.23 | 0.22 | 0.24 | 0.28 | |
| Cadence Design Systems Inc. | 0.16 | 0.21 | 0.11 | 0.12 | 0.14 | |
| CrowdStrike Holdings Inc. | 0.34 | 0.42 | 0.46 | 0.00 | — | |
| International Business Machines Corp. | 0.72 | 0.70 | 0.73 | 0.75 | 0.75 | |
| Intuit Inc. | 0.26 | 0.30 | 0.17 | 0.40 | 0.10 | |
| Microsoft Corp. | 0.24 | 0.28 | 0.33 | 0.38 | 0.43 | |
| Oracle Corp. | 0.99 | 1.09 | 0.94 | 0.86 | 0.72 | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.12 | — | |
| Palo Alto Networks Inc. | 0.53 | 0.95 | 0.84 | 0.74 | 0.47 | |
| Salesforce Inc. | 0.16 | 0.16 | 0.06 | 0.08 | 0.18 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | |
| Debt to Capital, Sector | ||||||
| Software & Services | 0.39 | 0.42 | 0.45 | 0.49 | 0.51 | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.40 | 0.41 | 0.45 | 0.49 | 0.50 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 1,488 ÷ 9,116 = 0.16
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | ServiceNow Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
ServiceNow Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt, net | —) | —) | 92) | —) | —) | |
| Long-term debt, net, less current portion | 1,488) | 1,486) | 1,484) | 1,640) | 695) | |
| Total debt | 1,488) | 1,486) | 1,576) | 1,640) | 695) | |
| Current portion of operating lease liabilities | 89) | 96) | 82) | 72) | 53) | |
| Operating lease liabilities, less current portion | 707) | 650) | 556) | 423) | 383) | |
| Total debt (including operating lease liability) | 2,284) | 2,232) | 2,214) | 2,135) | 1,131) | |
| Stockholders’ equity | 7,628) | 5,032) | 3,695) | 2,834) | 2,128) | |
| Total capital (including operating lease liability) | 9,912) | 7,264) | 5,909) | 4,970) | 3,259) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.23 | 0.31 | 0.37 | 0.43 | 0.35 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.11 | 0.13 | 0.15 | 0.17 | 0.00 | |
| Adobe Inc. | 0.20 | 0.25 | 0.24 | 0.26 | 0.28 | |
| Cadence Design Systems Inc. | 0.19 | 0.25 | 0.15 | 0.17 | 0.18 | |
| CrowdStrike Holdings Inc. | 0.35 | 0.43 | 0.47 | 0.00 | — | |
| International Business Machines Corp. | 0.73 | 0.71 | 0.74 | 0.76 | 0.77 | |
| Intuit Inc. | 0.28 | 0.31 | 0.20 | 0.42 | 0.10 | |
| Microsoft Corp. | 0.28 | 0.32 | 0.37 | 0.41 | 0.46 | |
| Oracle Corp. | 0.99 | 1.08 | 0.94 | 0.86 | 0.72 | |
| Palantir Technologies Inc. | 0.06 | 0.09 | 0.10 | 0.23 | — | |
| Palo Alto Networks Inc. | 0.57 | 0.95 | 0.85 | 0.76 | 0.47 | |
| Salesforce Inc. | 0.20 | 0.20 | 0.13 | 0.16 | 0.18 | |
| Synopsys Inc. | 0.10 | 0.11 | 0.11 | 0.12 | 0.03 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.42 | 0.45 | 0.48 | 0.51 | 0.53 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.42 | 0.43 | 0.47 | 0.51 | 0.50 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 2,284 ÷ 9,912 = 0.23
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | ServiceNow Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
ServiceNow Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt, net | —) | —) | 92) | —) | —) | |
| Long-term debt, net, less current portion | 1,488) | 1,486) | 1,484) | 1,640) | 695) | |
| Total debt | 1,488) | 1,486) | 1,576) | 1,640) | 695) | |
| Total assets | 17,387) | 13,299) | 10,798) | 8,715) | 6,022) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.09 | 0.11 | 0.15 | 0.19 | 0.12 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.12 | 0.15 | 0.15 | 0.17 | 0.20 | |
| Cadence Design Systems Inc. | 0.11 | 0.15 | 0.08 | 0.09 | 0.10 | |
| CrowdStrike Holdings Inc. | 0.15 | 0.20 | 0.27 | 0.00 | — | |
| International Business Machines Corp. | 0.42 | 0.40 | 0.39 | 0.39 | 0.41 | |
| Intuit Inc. | 0.22 | 0.25 | 0.13 | 0.31 | 0.07 | |
| Microsoft Corp. | 0.16 | 0.18 | 0.21 | 0.24 | 0.27 | |
| Oracle Corp. | 0.67 | 0.69 | 0.64 | 0.62 | 0.52 | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.07 | — | |
| Palo Alto Networks Inc. | 0.14 | 0.30 | 0.31 | 0.34 | 0.22 | |
| Salesforce Inc. | 0.12 | 0.12 | 0.04 | 0.06 | 0.11 | |
| Synopsys Inc. | 0.00 | 0.00 | 0.01 | 0.02 | 0.02 | |
| Debt to Assets, Sector | ||||||
| Software & Services | 0.25 | 0.26 | 0.28 | 0.30 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.26 | 0.26 | 0.29 | 0.31 | 0.32 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 1,488 ÷ 17,387 = 0.09
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | ServiceNow Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
ServiceNow Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current debt, net | —) | —) | 92) | —) | —) | |
| Long-term debt, net, less current portion | 1,488) | 1,486) | 1,484) | 1,640) | 695) | |
| Total debt | 1,488) | 1,486) | 1,576) | 1,640) | 695) | |
| Current portion of operating lease liabilities | 89) | 96) | 82) | 72) | 53) | |
| Operating lease liabilities, less current portion | 707) | 650) | 556) | 423) | 383) | |
| Total debt (including operating lease liability) | 2,284) | 2,232) | 2,214) | 2,135) | 1,131) | |
| Total assets | 17,387) | 13,299) | 10,798) | 8,715) | 6,022) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.13 | 0.17 | 0.21 | 0.24 | 0.19 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.06 | 0.07 | 0.08 | 0.09 | 0.00 | |
| Adobe Inc. | 0.14 | 0.17 | 0.17 | 0.19 | 0.20 | |
| Cadence Design Systems Inc. | 0.14 | 0.18 | 0.11 | 0.13 | 0.14 | |
| CrowdStrike Holdings Inc. | 0.16 | 0.21 | 0.29 | 0.00 | — | |
| International Business Machines Corp. | 0.44 | 0.42 | 0.42 | 0.43 | 0.45 | |
| Intuit Inc. | 0.24 | 0.27 | 0.16 | 0.33 | 0.07 | |
| Microsoft Corp. | 0.19 | 0.21 | 0.25 | 0.27 | 0.30 | |
| Oracle Corp. | 0.71 | 0.73 | 0.66 | 0.64 | 0.52 | |
| Palantir Technologies Inc. | 0.05 | 0.07 | 0.08 | 0.17 | — | |
| Palo Alto Networks Inc. | 0.16 | 0.33 | 0.35 | 0.38 | 0.22 | |
| Salesforce Inc. | 0.15 | 0.15 | 0.10 | 0.11 | 0.11 | |
| Synopsys Inc. | 0.07 | 0.07 | 0.08 | 0.08 | 0.02 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.29 | 0.30 | 0.32 | 0.34 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | 0.33 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 2,284 ÷ 17,387 = 0.13
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | ServiceNow Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
ServiceNow Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 17,387) | 13,299) | 10,798) | 8,715) | 6,022) | |
| Stockholders’ equity | 7,628) | 5,032) | 3,695) | 2,834) | 2,128) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.28 | 2.64 | 2.92 | 3.07 | 2.83 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Accenture PLC | 1.99 | 2.14 | 2.21 | 2.18 | 2.07 | |
| Adobe Inc. | 1.80 | 1.93 | 1.84 | 1.83 | 1.97 | |
| Cadence Design Systems Inc. | 1.67 | 1.87 | 1.60 | 1.58 | 1.60 | |
| CrowdStrike Holdings Inc. | 3.43 | 3.53 | 3.14 | 1.89 | — | |
| International Business Machines Corp. | 6.00 | 5.80 | 6.98 | 7.57 | 7.30 | |
| Intuit Inc. | 1.61 | 1.69 | 1.57 | 2.14 | 1.68 | |
| Microsoft Corp. | 2.00 | 2.19 | 2.35 | 2.55 | 2.80 | |
| Oracle Corp. | 125.24 | — | 25.03 | 9.56 | 4.99 | |
| Palantir Technologies Inc. | 1.30 | 1.35 | 1.42 | 1.77 | — | |
| Palo Alto Networks Inc. | 8.29 | 58.35 | 16.14 | 8.23 | 4.16 | |
| Salesforce Inc. | 1.69 | 1.64 | 1.60 | 1.63 | 1.97 | |
| Synopsys Inc. | 1.68 | 1.71 | 1.65 | 1.64 | 1.57 | |
| Financial Leverage, Sector | ||||||
| Software & Services | 2.55 | 2.73 | 2.95 | 3.14 | 3.30 | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.55 | 2.68 | 2.89 | 3.12 | 3.11 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 17,387 ÷ 7,628 = 2.28
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | ServiceNow Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
ServiceNow Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 1,731) | 325) | 230) | 119) | 627) | |
| Add: Income tax expense | (723) | 74) | 19) | 31) | (560) | |
| Add: Interest expense | 24) | 27) | 28) | 33) | 33) | |
| Earnings before interest and tax (EBIT) | 1,032) | 426) | 277) | 182) | 100) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 43.00 | 15.78 | 9.89 | 5.56 | 3.02 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Accenture PLC | 193.31 | 195.34 | 131.46 | 205.84 | 273.26 | |
| Adobe Inc. | 61.17 | 54.64 | 51.49 | 37.00 | 21.38 | |
| Cadence Design Systems Inc. | 36.43 | 46.58 | 46.26 | 31.50 | 26.44 | |
| CrowdStrike Holdings Inc. | -5.31 | -5.34 | -55.36 | -315.25 | — | |
| International Business Machines Corp. | 6.42 | 1.97 | 5.20 | 4.62 | 8.58 | |
| Intuit Inc. | 13.05 | 32.38 | 89.14 | 158.00 | 126.40 | |
| Microsoft Corp. | 46.38 | 41.58 | 31.31 | 21.47 | 17.27 | |
| Oracle Corp. | 3.65 | 3.84 | 6.28 | 7.13 | 6.97 | |
| Palantir Technologies Inc. | 69.33 | -87.97 | -133.20 | -82.39 | — | |
| Palo Alto Networks Inc. | 21.82 | -6.56 | -1.85 | -1.61 | 0.11 | |
| Salesforce Inc. | 3.30 | 8.09 | 24.28 | 7.42 | 8.80 | |
| Synopsys Inc. | 1,106.08 | 657.96 | 240.38 | 125.16 | 47.79 | |
| Interest Coverage, Sector | ||||||
| Software & Services | 17.61 | 18.25 | 17.63 | 14.26 | 13.10 | |
| Interest Coverage, Industry | ||||||
| Information Technology | 17.89 | 22.78 | 20.06 | 14.26 | 13.65 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,032 ÷ 24 = 43.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | ServiceNow Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
ServiceNow Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 1,731) | 325) | 230) | 119) | 627) | |
| Add: Income tax expense | (723) | 74) | 19) | 31) | (560) | |
| Add: Interest expense | 24) | 27) | 28) | 33) | 33) | |
| Earnings before interest and tax (EBIT) | 1,032) | 426) | 277) | 182) | 100) | |
| Add: Operating lease costs | 129) | 112) | 100) | 83) | 64) | |
| Earnings before fixed charges and tax | 1,161) | 538) | 377) | 265) | 165) | |
| Interest expense | 24) | 27) | 28) | 33) | 33) | |
| Operating lease costs | 129) | 112) | 100) | 83) | 64) | |
| Fixed charges | 153) | 139) | 128) | 116) | 97) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 7.59 | 3.87 | 2.95 | 2.29 | 1.69 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Accenture PLC | 10.98 | 12.25 | 10.41 | 9.66 | 10.07 | |
| Adobe Inc. | 30.56 | 26.79 | 25.59 | 18.77 | 10.78 | |
| Cadence Design Systems Inc. | 14.79 | 15.50 | 13.77 | 11.46 | 9.95 | |
| CrowdStrike Holdings Inc. | -3.39 | -3.39 | -6.40 | -12.01 | — | |
| International Business Machines Corp. | 4.32 | 1.52 | 3.13 | 2.62 | 4.41 | |
| Intuit Inc. | 9.03 | 14.67 | 25.58 | 27.48 | 34.00 | |
| Microsoft Corp. | 19.44 | 19.50 | 16.90 | 12.44 | 10.94 | |
| Oracle Corp. | 3.12 | 3.22 | 5.17 | 5.68 | 5.50 | |
| Palantir Technologies Inc. | 4.62 | -5.06 | -7.89 | -16.41 | — | |
| Palo Alto Networks Inc. | 7.20 | -1.18 | -1.09 | -0.52 | 0.41 | |
| Salesforce Inc. | 1.52 | 2.18 | 2.94 | 1.69 | 3.00 | |
| Synopsys Inc. | 14.38 | 12.91 | 9.29 | 7.46 | 6.30 | |
| Fixed Charge Coverage, Sector | ||||||
| Software & Services | 9.64 | 9.53 | 9.37 | 7.56 | 7.59 | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 11.45 | 13.53 | 12.31 | 9.12 | 9.36 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,161 ÷ 153 = 7.59
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | ServiceNow Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |