Salesforce.com Inc (CRM)
Fixed asset turnover
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 34,869,000 | 31,213,000 | 28,164,000 | 22,027,000 | 17,321,000 |
| Property, plant and equipment | US$ in thousands | 2,635,000 | 2,913,000 | 2,415,000 | 2,459,000 | 2,375,000 |
| Fixed asset turnover | 13.23 | 10.72 | 11.66 | 8.96 | 7.29 |
January 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $34,869,000K ÷ $2,635,000K
= 13.23
The fixed asset turnover ratio for Salesforce Inc has shown a consistent upward trend over the five-year period from January 31, 2020, to January 31, 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets each year. The ratio increased from 7.20 in 2020 to 9.45 in 2024, implying that for every dollar invested in fixed assets, the company generated $9.45 in revenue in 2024. This improvement suggests that Salesforce Inc is utilizing its fixed assets more efficiently to generate higher sales. Overall, the increasing trend in fixed asset turnover ratio reflects the company's effective management and utilization of its fixed assets to drive revenue growth.
Peer comparison
Jan 31, 2024