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NOW (ServiceNow) Return-on-Tangible-Asset : 9.60% (As of Mar. 2025)


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What is ServiceNow Return-on-Tangible-Asset?

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. ServiceNow's annualized Net Income for the quarter that ended in Mar. 2025 was $1,840 Mil. ServiceNow's average total tangible assets for the quarter that ended in Mar. 2025 was $19,169 Mil. Therefore, ServiceNow's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 was 9.60%.

The historical rank and industry rank for ServiceNow's Return-on-Tangible-Asset or its related term are showing as below:

NOW' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -23.05   Med: 2.12   Max: 13.41
Current: 8.73

During the past 13 years, ServiceNow's highest Return-on-Tangible-Asset was 13.41%. The lowest was -23.05%. And the median was 2.12%.

NOW's Return-on-Tangible-Asset is ranked better than
73.35% of 2841 companies
in the Software industry
Industry Median: 1.88 vs NOW: 8.73

ServiceNow Return-on-Tangible-Asset Historical Data

The historical data trend for ServiceNow's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Chart

ServiceNow Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.69 2.55 2.96 12.29 8.18

ServiceNow Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Asset Get a 7-Day Free Trial 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 8.67 6.38 10.26 8.57 9.60

Competitive Comparison of ServiceNow's Return-on-Tangible-Asset

For the Software - Application subindustry, ServiceNow's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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's Return-on-Tangible-Asset Distribution in the Software Industry

For the Software industry and Technology sector, ServiceNow's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where ServiceNow's Return-on-Tangible-Asset falls into.


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ServiceNow Return-on-Tangible-Asset Calculation

ServiceNow's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2024 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=1425/( (15932+18901)/ 2 )
=1425/17416.5
=8.18 %

ServiceNow's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=1840/( (18901+19437)/ 2 )
=1840/19169
=9.60 %

* 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.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2025) net income data.


ServiceNow  (NYSE:NOW) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


ServiceNow Return-on-Tangible-Asset Related Terms

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


ServiceNow Business Description

Industry
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, 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.
Executives
Anita M Sands director 350 ELLIS STREET, MOUNTAIN VIEW CA 94043
Frederic B Luddy director, 10 percent owner, officer: CHIEF PRODUCT OFFICER
Jacqueline P Canney officer: Chief People Officer 702 SW 8TH STREET, BENTONVILLE AR 72716
Gina Mastantuono officer: Chief Financial Officer 237 PARK AVENUE, 14TH FLOOR, NEW YORK NY 10017
Russell S Elmer officer: General Counsel
Paul Edward Chamberlain director C/O VEEVA SYSTEMS INC., 4280 HACIENDA DRIVE, PLEASANTON CA 94588
Jonathan Chadwick director 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Deborah Black director 2225 LAWSON LANE, SANTA CLARA CA 95054
Nicholas Tzitzon officer: Chief Strat & Corp Affairs Ofc 2225 LAWSON LANE, SANTA CLARA CA 95054
Paul John Smith officer: Chief Commercial Officer 2225 LAWSON LANE, SANTA CLARA CA 95054
Kevin Thomas Mcbride officer: Principal Accounting Officer 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054
William R Mcdermott director, officer: President & CEO 2225 LAWSON LANE, SANTA CLARA CA 95054
Larry Quinlan director 2225 LAWSON LANE, SANTA CLARA CA 95054
Jeffrey A Miller director 6801 KOLL CENTER PARKWAY, PLEASANTON CA 94566-7047
Teresa Briggs director 2225 LAWSON LANE, SANTA CLARA CA 95054