Salesforce.com Inc (CRM)

Activity ratios

Short-term

Turnover ratios

	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
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	17.28	17.88	16.96	16.11
Receivables turnover	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	2.83	6.30	6.41	6.65
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	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	15.63	29.39	—	—

Inventory turnover ratio measures how efficiently a company manages its inventory. Unfortunately, there is no data available for Salesforce Inc's inventory turnover for the given periods.

Receivables turnover ratio indicates how many times a company collects its accounts receivable during a specific period. The trend for Salesforce Inc's receivables turnover shows improvement, with a significant increase from 2.92 in Q4 2023 to 7.00 in Q3 2024.

Payables turnover ratio was not provided, making it impossible to assess how quickly Salesforce Inc pays its suppliers.

Working capital turnover ratio reflects how effectively a company utilizes its working capital to generate revenue. The trend for Salesforce Inc's working capital turnover is positive, indicating an increase in efficiency from 62.21 in Q4 2023 to 90.67 in Q1 2024. Overall, the company's management of working capital has improved over the periods analyzed.

Average number of days

		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
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	21.12	20.41	21.52	22.66
Days of sales outstanding (DSO)	days	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	129.00	57.90	56.93	54.93
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Days of Sales Outstanding (DSO) is a key activity ratio that measures the average number of days it takes for a company to collect revenue after a sale is made. In Q4 2024, Salesforce Inc had a DSO of 119.52 days, which indicates a significant increase compared to the prior quarter (Q3 2024) when DSO was 52.14 days. This suggests that Salesforce took longer to collect its accounts receivable in Q4 2024, possibly signaling issues with managing its receivables or potential delays in customer payments.

In general, a higher DSO may imply inefficiencies in collections processes or challenges in managing credit terms with customers. It is important for companies to closely monitor their DSO to ensure timely collection of receivables and optimize cash flow.

Days of Inventory on Hand (DOH) is another important activity ratio that measures how long it takes for a company to sell its inventory. Unfortunately, the data provided does not include DOH figures for Salesforce Inc across the listed quarters, making it challenging to assess the company's inventory management efficiency.

Lastly, the number of Days of Payables, which is not provided in the table, complements DSO and DOH in evaluating the company's working capital management. By comparing the days of payables with DSO and DOH, one can gain insights into how effectively Salesforce manages its working capital cycle.

In conclusion, based on the DSO data available for Salesforce Inc, there are indications of potential challenges in accounts receivable management during Q4 2024. It would be beneficial for the company to analyze the reasons behind the increase in DSO and implement strategies to improve collections efficiency in order to enhance overall financial performance.

Long-term

	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
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
Total asset turnover	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	0.32	0.32	0.45	0.43

The fixed asset turnover ratio for Salesforce Inc has shown a consistent range around 8.5 to 9.5 over the past eight quarters, indicating that the company is very efficient in generating sales revenue in relation to its fixed assets. This can be interpreted as a positive sign of operational efficiency and effective utilization of fixed assets.

On the other hand, the total asset turnover ratio has been relatively stable, ranging from 0.30 to 0.37 over the same period. This suggests that Salesforce Inc is generating sales revenue relative to its total assets at a moderate level. It is important to note that the total asset turnover ratio is lower compared to the fixed asset turnover, which may indicate that Salesforce Inc has a significant portion of assets that are not directly contributing to the generation of sales revenue.

Overall, while the fixed asset turnover ratio reflects strong efficiency in utilizing fixed assets to generate sales, the total asset turnover ratio points towards a moderate level of sales generated relative to total assets. It would be beneficial for Salesforce Inc to continue monitoring and optimizing these ratios to ensure the efficient utilization of both fixed and total assets in driving revenue growth.