Salesforce.com Inc (CRM)

Fixed asset turnover

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Revenue	US$ in thousands	38,014,000	34,869,000	31,213,000	28,164,000	22,027,000
Property, plant and equipment	US$ in thousands	2,424,000	2,635,000	2,913,000	2,415,000	2,459,000
Fixed asset turnover		15.68	13.23	10.72	11.66	8.96

January 31, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $38,014,000K ÷ $2,424,000K
= 15.68

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Looking at the data provided for Salesforce.com Inc, the trend in fixed asset turnover over the years demonstrates a positive trajectory.

In January 31, 2021, the fixed asset turnover was reported at 8.96, indicating that for every dollar of fixed assets, the company generated $8.96 in revenue. Over the subsequent years, there has been a notable improvement in the efficiency of fixed asset utilization.

By January 31, 2025, the fixed asset turnover had surged to 15.68, showcasing a significant increase in the company's ability to generate revenue from its fixed assets. This suggests that Salesforce.com Inc has been effectively managing its fixed assets to drive revenue growth and enhance operational efficiency.

The consistent increase in fixed asset turnover year over year reflects positively on the company's operational efficiency and indicates effective management of its asset base to drive sales. It also suggests that the company is making efficient use of its fixed assets to support its revenue generation activities. Overall, the trend in fixed asset turnover for Salesforce.com Inc portrays a strong performance in terms of asset utilization and revenue generation.