Salesforce.com Inc (CRM)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	28,674,000	28,387,000	28,255,000	27,952,000	28,899,000	29,487,000	29,648,000	29,956,000	29,053,000	28,264,000	27,811,000	26,413,000	24,777,000	23,405,000	21,783,000	20,800,000	20,261,000	19,180,000	18,499,000	17,398,000
Inventory	US$ in thousands	—	—	—	—	—	1,757,000	1,781,000	1,772,000	1,776,000	1,549,000	1,531,000	1,478,000	1,454,000	1,242,000	1,211,000	1,166,000	1,146,000	1,017,000	948,000	881,000
Inventory turnover		—	—	—	—	—	16.78	16.65	16.91	16.36	18.25	18.17	17.87	17.04	18.84	17.99	17.84	17.68	18.86	19.51	19.75

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $28,674,000K ÷ $—K
= —

The inventory turnover ratio for Salesforce.com Inc has shown a relatively stable trend over the past few years, with values ranging from approximately 16.36 to 19.75. This ratio measures how efficiently the company is managing its inventory by indicating the number of times the inventory has been sold and replaced during the period.

The decreasing trend in the inventory turnover ratio from 2019 to 2022 may suggest a potential slowdown in sales relative to the inventory levels held by the company. However, the ratio started to show a slight increase from 2022 onwards, indicating a potential improvement in inventory management efficiency.

It is important for the company to monitor its inventory turnover ratio continuously to ensure optimal inventory management. A consistently low inventory turnover may lead to excess inventory carrying costs, while a very high ratio may indicate stockouts and potential lost sales opportunities. The ideal inventory turnover ratio varies by industry and specific business circumstances, so Salesforce.com Inc should benchmark its ratio against industry peers for a better comparison.

Overall, the stable but slightly declining trend in Salesforce.com Inc's inventory turnover ratio implies the need for ongoing monitoring and potential adjustments in inventory management practices to maintain operational efficiency and profitability.