Salesforce.com Inc (CRM)
Receivables 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 |
| Receivables | US$ in thousands | 11,945,000 | 11,414,000 | 10,755,000 | 9,739,000 | 7,786,000 |
| Receivables turnover | 3.18 | 3.05 | 2.90 | 2.89 | 2.83 |
January 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $38,014,000K ÷ $11,945,000K
= 3.18
The receivables turnover ratio for Salesforce.com Inc has shown a positive trend over the past five years, increasing from 2.83 in January 31, 2021, to 3.18 in January 31, 2025. This indicates that the company is collecting its accounts receivable more efficiently each year. A higher receivables turnover ratio suggests that Salesforce.com is able to convert its accounts receivable into cash quicker, which is favorable for its liquidity and cash flow management. The gradual improvement in this ratio reflects effective credit management practices and a potentially stronger customer base. Additionally, a rising receivables turnover ratio can be viewed positively by investors and creditors as it signifies a healthy and efficient working capital cycle.
Peer comparison
Jan 31, 2025