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ServiceNow (ServiceNow) Sloan Ratio % : 3.72% (As of Mar. 2024)


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What is ServiceNow Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

ServiceNow's Sloan Ratio for the quarter that ended in Mar. 2024 was 3.72%.

As of Mar. 2024, ServiceNow has a Sloan Ratio of 3.72%, indicating the company is in the safe zone and there is no funny business with accruals.


ServiceNow Sloan Ratio % Historical Data

The historical data trend for ServiceNow's Sloan Ratio % 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 Sloan Ratio % Chart

ServiceNow Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.93 -1.84 -3.28 1.39 2.88

ServiceNow Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Sloan Ratio % 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 3.42 8.15 8.14 2.88 3.72

Competitive Comparison of ServiceNow's Sloan Ratio %

For the Software - Application subindustry, ServiceNow's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % Distribution in the Software Industry

For the Software industry and Technology sector, ServiceNow's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where ServiceNow's Sloan Ratio % falls into.



ServiceNow Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

ServiceNow's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(1731-3398
--2167)/17387
=2.88%

ServiceNow's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2024 )
=(1928-3837
--2561)/17544
=3.72%

ServiceNow's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1044 (Jun. 2023 ) + 242 (Sep. 2023 ) + 295 (Dec. 2023 ) + 347 (Mar. 2024 ) = $1,928 Mil.
ServiceNow's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 580 (Jun. 2023 ) + 311 (Sep. 2023 ) + 1605 (Dec. 2023 ) + 1341 (Mar. 2024 ) = $3,837 Mil.
ServiceNow's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -674 (Jun. 2023 ) + -525 (Sep. 2023 ) + -444 (Dec. 2023 ) + -918 (Mar. 2024 ) = $-2,561 Mil.

* 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.


ServiceNow  (NYSE:NOW) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Mar. 2024, ServiceNow has a Sloan Ratio of 3.72%, indicating the company is in the safe zone and there is no funny business with accruals.


ServiceNow Sloan Ratio % Related Terms

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ServiceNow (ServiceNow) Business Description

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
Paul Edward Chamberlain director C/O VEEVA SYSTEMS INC., 4280 HACIENDA DRIVE, PLEASANTON CA 94588
Paul John Smith officer: Chief Commercial Officer 2225 LAWSON LANE, SANTA CLARA CA 95054
Chirantan Jitendra Desai officer: Chief Product Officer C/O ZEBRA TECHNOLOGIES CORPORATION, LINCOLNSHIRE IL 60069
Christopher Bedi officer: Chief Information Officer 2225 LAWSON LANE, SANTA CLARA CA 95054
Gina Mastantuono officer: Chief Financial Officer 237 PARK AVENUE, 14TH FLOOR, NEW YORK NY 10017
Russell S Elmer officer: General Counsel
Jacqueline P Canney officer: Chief People Officer 702 SW 8TH STREET, BENTONVILLE AR 72716
Nicholas Tzitzon officer: Chief Strat & Corp Affairs Ofc 2225 LAWSON LANE, SANTA CLARA CA 95054
Anita M Sands director 350 ELLIS STREET, MOUNTAIN VIEW CA 94043
Lawrence Jackson director 2225 LAWSON LANE, SANTA CLARA CA 95054
Frederic B Luddy director, 10 percent owner, officer: CHIEF PRODUCT OFFICER
Teresa Briggs director 2225 LAWSON LANE, SANTA CLARA CA 95054
Kevin Thomas Mcbride officer: Principal Accounting Officer 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054
Lara Caimi officer: Chief Customer & Partner Ofc C/O CONFLUENT, INC., 899 W EVELYN AVENUE, MOUNTAIN VIEW CA 94041
Deborah Black director 2225 LAWSON LANE, SANTA CLARA CA 95054

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