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ServiceNow Interest Coverage

: 3.67 (As of Jun. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. ServiceNow's Operating Income for the three months ended in Jun. 2022 was $22 Mil. ServiceNow's Interest Expense for the three months ended in Jun. 2022 was $-6 Mil. ServiceNow's interest coverage for the quarter that ended in Jun. 2022 was 3.67. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for ServiceNow's Interest Coverage or its related term are showing as below:

NOW' s Interest Coverage Range Over the Past 10 Years
Min: 1.27   Med: 7.61   Max: No Debt
Current: 8.38


NOW's Interest Coverage is ranked worse than
74.2% of 1562 companies
in the Software industry
Industry Median: 34.30 vs NOW: 8.38

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


ServiceNow Interest Coverage Historical Data

The historical data trend for ServiceNow's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ServiceNow Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 1.27 6.03 9.18

ServiceNow Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.29 10.57 5.00 14.50 3.67

Competitive Comparison

For the Software - Application subindustry, ServiceNow's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

ServiceNow Interest Coverage Distribution

For the Software industry and Technology sector, ServiceNow's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ServiceNow's Interest Coverage falls into.



ServiceNow Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

ServiceNow's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, ServiceNow's Interest Expense was $-28 Mil. Its Operating Income was $257 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,040 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*257/-28
=9.18

ServiceNow's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, ServiceNow's Interest Expense was $-6 Mil. Its Operating Income was $22 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,057 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*22/-6
=3.67

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


ServiceNow  (NYSE:NOW) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


ServiceNow Interest Coverage Related Terms

Thank you for viewing the detailed overview of ServiceNow's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


ServiceNow Business Description

ServiceNow logo
Address
2225 Lawson Lane, Santa Clara, CA, USA, 95054
ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management (ITSM), expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service (PaaS).
Executives
Caimi Lara officer: Chief Customer & Partner Ofc C/O CONFLUENT, INC. 899 W EVELYN AVENUE MOUNTAIN VIEW CA 94041
Bedi Christopher officer: Chief Information Officer 2225 LAWSON LANE SANTA CLARA CA 95054
Smith Paul John officer: Chief Commercial Officer 2225 LAWSON LANE SANTA CLARA CA 95054
Mcbride Kevin Thomas officer: Principal Accounting Officer 2200 MISSION COLLEGE BLVD SANTA CLARA CA 95054
Tzitzon Nicholas officer: Chief Strat & Corp Affairs Ofc 2225 LAWSON LANE SANTA CLARA CA 95054
Rathnam Sukumar director 2225 LAWSON LANE SANTA CLARA CA 95054
Canney Jacqueline P officer: Chief People Officer 702 SW 8TH STREET BENTONVILLE AR 72716
Quinlan Larry director 2225 LAWSON LANE SANTA CLARA CA 95054
Toledano Gabrielle B officer: Chief Talent Officer 209 REDWOOD SHORES PARKWAY REDWOOD CITY CA 94065
Jackson Lawrence director 2225 LAWSON LANE SANTA CLARA CA 95054
Haverty Kevin officer: Chief Revenue Officer 2225 LAWSON LANE SANTA CLARA CA 95054
Mastantuono Gina officer: Chief Financial Officer 237 PARK AVENUE 14TH FLOOR NEW YORK NY 10017
Mcdermott William R director, officer: President & CEO C/O UNDER ARMOUR, INC. 1020 HULL STREET, 3RD FLOOR BALTIMORE MD 21230
Goon Fay Sien officer: Principal Accounting Officer 2225 LAWSON LANE SANTA CLARA CA 95054
Briggs Teresa director 2225 LAWSON LANE SANTA CLARA CA 95054

ServiceNow Headlines

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