Salesforce.com Inc (CRM)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	34,869,000	33,714,000	32,766,000	31,966,000	31,213,000	30,389,000	30,006,000	29,252,000	28,129,000	26,979,000	24,988,000	23,197,000	22,027,000	20,756,000	19,969,000	18,704,000	17,469,000	16,221,000	14,952,000	14,307,000
Receivables	US$ in thousands	11,414,000	4,850,000	5,400,000	4,632,000	10,755,000	4,275,000	4,745,000	3,952,000	9,739,000	4,019,000	4,074,000	3,174,000	7,786,000	3,316,000	3,445,000	3,076,000	6,174,000	2,573,000	2,332,000	2,153,000
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

January 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $34,869,000K ÷ $11,414,000K
= 3.05

The receivables turnover ratio of Salesforce Inc has shown some fluctuations over the past eight quarters. The ratio was at its lowest in Q4 2023 at 2.92 and reached its peak in Q3 2024 at 7.00. This indicates that the company's ability to collect on its accounts receivable improved significantly in Q3 2024 compared to Q4 2023.

Overall, the average receivables turnover for the past eight quarters is 5.32, suggesting that on average, Salesforce Inc collects its accounts receivable approximately 5.32 times a year. This ratio signifies that the company has a reasonably efficient process in converting its outstanding receivables into cash.

It is essential for the company to maintain a healthy receivables turnover ratio to ensure smooth cash flow and avoid liquidity issues. Further analysis and comparison with industry benchmarks can provide more insights into the effectiveness of Salesforce Inc's credit policies and collection procedures.