ServiceNow Total Debt vs. Revenue
| N1OW34 Stock | BRL 133.21 2.45 1.81% |
For ServiceNow profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ServiceNow to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ServiceNow utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ServiceNow's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ServiceNow over time as well as its relative position and ranking within its peers.
ServiceNow |
ServiceNow Revenue vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ServiceNow's current stock value. Our valuation model uses many indicators to compare ServiceNow value to that of its competitors to determine the firm's financial worth. ServiceNow is regarded fourth in total debt category among its peers. It is regarded second in revenue category among its peers totaling about 3.97 of Revenue per Total Debt. Comparative valuation analysis is a catch-all model that can be used if you cannot value ServiceNow by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ServiceNow's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.ServiceNow Total Debt vs. Competition
ServiceNow is regarded fourth in total debt category among its peers. Total debt of Software—Application industry is now estimated at about 10.17 Billion. ServiceNow retains roughly 1.48 Billion in total debt claiming about 15% of equities listed under Software—Application industry.
ServiceNow Revenue vs. Total Debt
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
ServiceNow |
| = | 1.48 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
ServiceNow |
| = | 5.9 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
ServiceNow Revenue vs Competition
ServiceNow is regarded second in revenue category among its peers. Market size based on revenue of Software—Application industry is now estimated at about 33.33 Billion. ServiceNow retains roughly 5.9 Billion in revenue claiming about 18% of equities listed under Software—Application industry.
ServiceNow Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ServiceNow, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ServiceNow will eventually generate negative long term returns. The profitability progress is the general direction of ServiceNow's change in net profit over the period of time. It can combine multiple indicators of ServiceNow, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. The company was incorporated in 2004 and is headquartered in Santa Clara, California. SERVICENOW DRN operates under SoftwareApplication classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 13096 people.
ServiceNow Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ServiceNow. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ServiceNow position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ServiceNow's important profitability drivers and their relationship over time.
Use ServiceNow in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ServiceNow position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ServiceNow will appreciate offsetting losses from the drop in the long position's value.ServiceNow Pair Trading
ServiceNow Pair Trading Analysis
The ability to find closely correlated positions to ServiceNow could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ServiceNow when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ServiceNow - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ServiceNow to buy it.
The correlation of ServiceNow is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ServiceNow moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ServiceNow moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ServiceNow can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your ServiceNow position
In addition to having ServiceNow in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Processed Foods Thematic Idea Now
Processed Foods
Companies producing and distributing processed foods to retail sectors. The Processed Foods theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Processed Foods Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in ServiceNow Stock
When determining whether ServiceNow is a strong investment it is important to analyze ServiceNow's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact ServiceNow's future performance. For an informed investment choice regarding ServiceNow Stock, refer to the following important reports:Check out Correlation Analysis. For information on how to trade ServiceNow Stock refer to our How to Trade ServiceNow Stock guide.You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
To fully project ServiceNow's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ServiceNow at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ServiceNow's income statement, its balance sheet, and the statement of cash flows.