Salesforce.com Inc (CRM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 3.18 | 7.85 | 6.77 | 8.38 | 3.05 | 6.95 | 6.07 | 6.90 | 2.90 | 7.11 | 6.32 | 7.40 | 2.89 | 6.71 | 6.13 | 7.31 | 2.83 | 6.26 | 5.80 | 6.08 |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 21.76 | 18.15 | 42.40 | 14.59 | 14.27 | 41.73 | 98.40 | 90.05 | 61.93 | 30.95 | 25.73 | 57.13 | 26.49 | 29.26 | — | 4.53 | 5.29 | 7.65 | 10.60 | 10.00 |
Inventory Turnover Ratio Analysis:
- The inventory turnover ratio measures how many times Salesforce.com Inc sells and replaces its inventory during a specific period.
- The trend shows a gradual decline in inventory turnover from April 2020 to January 2025, indicating a decrease in the efficiency of managing inventory turnover.
- The ratio ranged from a high of 19.75 in April 2020 to a low of 16.36 in January 2023, showcasing fluctuations in inventory management.
- Although there was a slight improvement in April 2024 with a ratio of 16.91, it remained below the initial levels recorded in 2020.
Receivables Turnover Ratio Analysis:
- Receivables turnover ratio measures how well Salesforce.com Inc collects outstanding credit sales during a specific period.
- The trend shows fluctuation in the ratio over the years, with some periods indicating efficient collection of receivables and others showing delays.
- The ratio ranged from a low of 2.83 in January 2021 to a high of 8.38 in April 2024, indicating variability in receivables management.
- Overall, there appears to be improvement in collecting receivables towards the later years, as seen in the increasing trend from 2022 to 2024.
Payables Turnover Ratio Analysis:
- The absence of payables turnover data for Salesforce.com Inc suggests that the company may not have significant payables or trades on credit, or the data might not be disclosed.
Working Capital Turnover Ratio Analysis:
- The working capital turnover ratio measures how efficiently Salesforce.com Inc is utilizing its working capital to generate sales revenue.
- The trend indicates fluctuations in the ratio over the years, with periods of high efficiency and periods of decreased efficiency in utilizing working capital.
- Notable peaks in working capital turnover were observed in specific periods like October 2021, April 2022, and July 2023, suggesting effective utilization of internal resources.
- The ratio dipped in some periods, like April 2021 and January 2024, indicating a need for improvement in managing working capital efficiency.
Overall, while there are fluctuations in activity ratios over the years, a consistent effort to improve inventory turnover, receivables turnover, and working capital turnover could enhance Salesforce.com Inc's operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | 21.75 | 21.93 | 21.59 | 22.31 | 20.00 | 20.09 | 20.42 | 21.42 | 19.37 | 20.29 | 20.46 | 20.65 | 19.35 | 18.70 | 18.48 |
| Days of sales outstanding (DSO) | days | 114.69 | 46.50 | 53.91 | 43.55 | 119.48 | 52.51 | 60.15 | 52.89 | 125.77 | 51.35 | 57.72 | 49.31 | 126.37 | 54.37 | 59.51 | 49.94 | 129.02 | 58.31 | 62.97 | 60.03 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the activity ratios provided for Salesforce.com Inc, let's analyze the trends:
1. Days of Inventory on Hand (DOH):
- The company experienced a gradual increase in the days of inventory on hand from April 2020 to January 2022, reaching a peak of 21.42 days.
- There was a slight decrease in DOH from January 2022 to October 2022, followed by a relatively stable period through to October 2023.
- The overall trend suggests that Salesforce.com Inc effectively managed its inventory levels to support its operations.
2. Days of Sales Outstanding (DSO):
- The DSO for Salesforce.com Inc fluctuated significantly over the years, with notable spikes in January 2021, January 2022, and January 2023.
- Despite the fluctuations, there was a general downward trend in DSO from its peak in January 2023 to January 2025, indicating an improvement in the company's ability to collect receivables more efficiently.
3. Number of Days of Payables:
- The data provided does not include information on the number of days of payables for Salesforce.com Inc, suggesting that the company may not have significant payables outstanding during the reported periods.
- Without this specific ratio, it is challenging to assess the company's management of its payables and its relationships with suppliers.
In conclusion, Salesforce.com Inc demonstrated effective inventory management and improvements in its accounts receivable collection over the analyzed periods. However, the absence of data on payables limits a comprehensive assessment of the company's overall liquidity and working capital management.
See also:
Salesforce.com Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 15.68 | 10.89 | 10.20 | 10.22 | 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 |
| Total asset turnover | 0.37 | 0.41 | 0.40 | 0.37 | 0.35 | 0.37 | 0.35 | 0.34 | 0.32 | 0.33 | 0.32 | 0.31 | 0.30 | 0.31 | 0.28 | 0.36 | 0.33 | 0.35 | 0.35 | 0.35 |
The Fixed Asset Turnover ratio for Salesforce.com Inc has shown an increasing trend over the years, indicating that the company has been able to generate more revenue from its fixed assets efficiently. The ratio increased from 7.43 in April 2020 to 15.68 in January 2025, peaking at 13.23 in January 2024. This signifies that the company has been utilizing its fixed assets effectively to generate sales.
On the other hand, the Total Asset Turnover ratio fluctuated over the period but generally remained stable. It ranged from 0.28 to 0.41, with a slight increase from 0.35 in April 2020 to 0.37 in January 2025. This indicates that Salesforce.com Inc is generating sales revenue in relation to its total assets consistently.
In conclusion, based on the long-term activity ratios, Salesforce.com Inc has been effectively utilizing its fixed assets to generate revenue, as evidenced by the increasing trend in Fixed Asset Turnover ratio. Additionally, the stability in the Total Asset Turnover ratio shows a consistent performance in generating sales relative to total assets.
See also:
Salesforce.com Inc Long-term (Investment) Activity Ratios (Quarterly Data)