Salesforce.com Inc (CRM)

Total asset 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
Total assets	US$ in thousands	99,823,000	98,849,000	95,209,000	66,301,000	55,126,000
Total asset turnover		0.35	0.32	0.30	0.33	0.31

January 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $34,869,000K ÷ $99,823,000K
= 0.35

The total asset turnover ratio measures a company's ability to generate sales from its assets. A higher total asset turnover indicates that the company is more efficient in utilizing its assets to generate revenue.

From the data provided, Salesforce Inc's total asset turnover has been fluctuating over the past five years. In the latest fiscal year ending January 31, 2024, the total asset turnover ratio was 0.35, which indicates that for every dollar of assets, Salesforce generated $0.35 in sales. This represents an improvement compared to the previous year's ratio of 0.32.

However, looking at the trend over the past five years, there seems to be some variability in the company's asset utilization efficiency. In fiscal year 2022, the total asset turnover ratio dipped to 0.28, but it bounced back in the following year. This suggests that Salesforce may have experienced challenges in efficiently leveraging its assets in FY2022 but managed to improve in subsequent years.

Overall, while there have been fluctuations in Salesforce's total asset turnover ratio, the latest figure of 0.35 indicates an improvement in asset utilization efficiency, which is a positive sign for the company's operational performance.