ServiceNow, Inc. — Earnings Quality Grade B
NOW · Technology
Generally healthy
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 72 days, change -2 days YoY
AR growth 17.3% vs revenue growth 20.9%
Revenue 20.9%, CFFO 27.6%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 2.1% vs revenue 20.9%. Normal
SG&A/Gross Profit = 53.5%. Normal
Gross margin 77.5%, change -1.6pp. Stable
Cash Flow Quality
CFFO/NI = 3.11. Profits backed by cash
FCF $4.5B, FCF/NI = 2.59
Accruals ratio = -14.2%. Low accruals
Cash $6.3B covers debt $2.4B
Balance Sheet Health
Goodwill+Intangibles $4.7B = 36% of equity
Debt/EBITDA = 0.8x. Healthy
Other assets -0.3% vs revenue 20.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 217% YoY
Manipulation Score
M-Score = -2.91 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10