Salesforce.com Inc (CRM)
Receivables turnover
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 34,869,000 | 31,213,000 | 28,164,000 | 22,027,000 | 17,321,000 |
| Receivables | US$ in thousands | 11,414,000 | 10,755,000 | 9,739,000 | 7,786,000 | 6,174,000 |
| Receivables turnover | 3.05 | 2.90 | 2.89 | 2.83 | 2.81 |
January 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $34,869,000K ÷ $11,414,000K
= 3.05
The receivables turnover ratio of Salesforce Inc has exhibited a generally increasing trend over the past five years, reflecting improvements in the company's ability to efficiently collect payments from customers. Specifically, the ratio has increased from 2.77 in January 2020 to 3.05 in January 2024. This indicates that, on average, Salesforce Inc collected its accounts receivable approximately 3.05 times during the most recent fiscal year.
A higher receivables turnover ratio is generally viewed positively by investors and creditors as it suggests that the company is collecting its outstanding receivables more rapidly, which can improve cash flow and liquidity. However, it's important to note that the effectiveness of the receivables turnover ratio may vary across industries and companies with different business models.
Peer comparison
Jan 31, 2024