Salesforce.com Inc (CRM)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 16.36 | 17.04 | 17.68 |
| Receivables turnover | 3.18 | 3.05 | 2.90 | 2.89 | 2.83 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 21.76 | 14.27 | 61.93 | 26.52 | 5.29 |
Based on the provided data for Salesforce.com Inc's activity ratios, we can analyze the following:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the inventory is sold and replaced in a given period.
- Salesforce.com Inc's inventory turnover has been consistently high, ranging from 16.36 to 17.68, indicating that the company efficiently sells and replaces its inventory within a short period.
2. Receivables Turnover:
- The receivables turnover ratio gauges the efficiency of a company in collecting credit sales from customers.
- Salesforce.com Inc's receivables turnover has been increasing over the years, from 2.83 to 3.18, suggesting that the company has been improving its collection process and converting credit sales into cash at a faster rate.
3. Payables Turnover:
- Payables turnover ratio reflects how quickly a company pays off its suppliers.
- Based on the data provided, Salesforce.com Inc's payables turnover information is not available, suggesting that the company's payables turnover ratio is not calculable.
4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue.
- Salesforce.com Inc's working capital turnover has shown fluctuations over the years, reaching a peak in 2023 at 61.93 and decreasing to 21.76 in 2025, indicating variations in the company's ability to generate sales revenue relative to its working capital.
In conclusion, Salesforce.com Inc demonstrates efficiency in managing its inventory and collecting credit sales, as evidenced by the high inventory turnover and increasing receivables turnover ratios. However, the lack of data on payables turnover limits a comprehensive analysis of the company's payment practices. The fluctuating trend in working capital turnover signifies the changing relationship between sales revenue and working capital utilization over the years.
Average number of days
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 22.31 | 21.42 | 20.65 |
| Days of sales outstanding (DSO) | days | 114.69 | 119.48 | 125.77 | 126.22 | 129.02 |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Salesforce.com Inc's activity ratios:
1. Days of Inventory on Hand (DOH):
- The DOH shows the number of days a company holds inventory before selling it. Salesforce.com's DOH has been increasing over the years, from 20.65 days in January 2021 to 21.42 days in January 2022 and further to 22.31 days in January 2023. However, data is not available for 2024 and 2025.
2. Days of Sales Outstanding (DSO):
- DSO measures how quickly a company collects its accounts receivable. Salesforce.com has shown improvement in this metric, with DSO decreasing from 129.02 days in January 2021 to 114.69 days in January 2025. This indicates that the company is collecting payments from its customers more efficiently over time.
3. Number of Days of Payables:
- Unfortunately, there is no data available for the number of days of payables for Salesforce.com across the years provided. This means we cannot assess how long the company takes to pay its suppliers.
Overall, Salesforce.com Inc's activity ratios suggest an improvement in its inventory management and accounts receivable collection efficiency over the years, although more data on payables is needed to provide a comprehensive analysis of the company's working capital management.
See also:
Long-term
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 15.68 | 13.23 | 10.72 | 11.66 | 8.96 |
| Total asset turnover | 0.37 | 0.35 | 0.32 | 0.30 | 0.33 |
Long-term activity ratios provide valuable insights into how efficiently a company utilizes its assets to generate sales. For Salesforce.com Inc, we will analyze the fixed asset turnover and total asset turnover ratios over the five-year period from January 31, 2021, to January 31, 2025.
1. Fixed Asset Turnover:
- Fixed asset turnover measures how effectively a company generates sales from its fixed assets. A higher ratio indicates better utilization of fixed assets.
- The fixed asset turnover for Salesforce.com Inc has shown an increasing trend over the five-year period, from 8.96 in January 2021 to 15.68 in January 2025.
- The improvement in the fixed asset turnover suggests that Salesforce.com Inc has become more efficient in generating revenue from its fixed assets, indicating better asset management and utilization.
2. Total Asset Turnover:
- Total asset turnover reflects how well a company generates sales relative to its total assets. A higher ratio indicates more efficient asset utilization.
- The total asset turnover for Salesforce.com Inc fluctuated slightly over the five-year period, from 0.33 in January 2021 to 0.37 in January 2025.
- While the total asset turnover ratio increased overall, it remained relatively stable, indicating that Salesforce.com Inc was able to maintain a consistent level of sales generated from its total assets.
Overall, the analysis of Salesforce.com Inc's long-term activity ratios demonstrates that the company has been efficiently utilizing its fixed assets to drive revenue growth. The increasing fixed asset turnover ratio indicates improved efficiency in utilizing fixed assets, while the relatively stable total asset turnover ratio suggests consistent sales generation relative to total assets. These trends highlight Salesforce.com Inc's effective asset management and operational performance over the five-year period.