Salesforce.com Inc (CRM)
Working capital 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 current assets | US$ in thousands | 29,074,000 | 26,395,000 | 22,850,000 | 21,889,000 | 15,963,000 |
| Total current liabilities | US$ in thousands | 26,631,000 | 25,891,000 | 21,788,000 | 17,728,000 | 14,845,000 |
| Working capital turnover | 14.27 | 61.93 | 26.52 | 5.29 | 15.49 |
January 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $34,869,000K ÷ ($29,074,000K – $26,631,000K)
= 14.27
Salesforce Inc's working capital turnover has fluctuated over the past five years, indicating varying efficiency in utilizing its working capital to generate sales revenue. The drastic decrease from 62.21 in Jan 31, 2023 to 5.11 in Jan 31, 2021 suggests a significant decline in the company's ability to convert working capital into sales during that period. However, the ratio improved in the subsequent years, reaching 14.27 in Jan 31, 2024. This increase indicates a more efficient utilization of working capital in generating sales revenue compared to the previous year. Overall, the company's working capital turnover has shown volatility, and further analysis of the company's financial performance and operational efficiency is necessary to understand the underlying factors driving these fluctuations.
Peer comparison
Jan 31, 2024