Salesforce.com Inc (CRM)

Fixed asset turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Revenue (ttm)	US$ in thousands	34,869,000	33,714,000	32,766,000	31,966,000	31,213,000	30,389,000	30,006,000	29,252,000	28,129,000	26,979,000	24,988,000	23,197,000	22,027,000	20,756,000	19,969,000	18,704,000	17,469,000	16,221,000	14,952,000	14,307,000
Property, plant and equipment	US$ in thousands	2,635,000	3,807,000	3,876,000	3,695,000	2,913,000	3,514,000	3,375,000	2,868,000	2,415,000	2,768,000	2,711,000	2,490,000	2,459,000	2,564,000	2,528,000	2,518,000	2,375,000	2,365,000	2,283,000	2,243,000
Fixed asset turnover		13.23	8.86	8.45	8.65	10.72	8.65	8.89	10.20	11.65	9.75	9.22	9.32	8.96	8.10	7.90	7.43	7.36	6.86	6.55	6.38

January 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $34,869,000K ÷ $2,635,000K
= 13.23

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its fixed assets. A higher fixed asset turnover indicates that a company is able to generate more revenue from its fixed assets.

Analyzing the fixed asset turnover for Salesforce Inc over the past eight quarters, we observe fluctuations in the ratio. In Q4 2024, the fixed asset turnover was 9.45, showing a notable increase from the previous quarter's 8.92. This indicates that Salesforce Inc was able to generate more revenue relative to its investment in fixed assets during this period.

Looking at the trend over the past year, the fixed asset turnover has remained relatively high, generally ranging between 8.47 and 9.74. This suggests that Salesforce Inc has consistently utilized its fixed assets efficiently to generate revenue.

Overall, the trend in Salesforce Inc's fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to drive revenue growth. This efficiency in asset utilization is a positive indicator of the company's operational performance and ability to generate profits.