Salesforce.com Inc (CRM)

Cash ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cash and cash equivalents	US$ in thousands	8,848,000	8,472,000	7,016,000	5,464,000	6,195,000
Short-term investments	US$ in thousands	5,253,000	5,802,000	5,540,000	5,443,000	7,839,000
Total current liabilities	US$ in thousands	27,980,000	26,631,000	25,891,000	21,788,000	17,728,000
Cash ratio		0.50	0.54	0.48	0.50	0.79

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,848,000K + $5,253,000K) ÷ $27,980,000K
= 0.50

The cash ratio of Salesforce.com Inc has shown a decline over the past five years, from 0.79 in January 31, 2021, to 0.50 in January 31, 2022, then further decreasing to 0.48 in January 31, 2023. However, there was a slight increase in the cash ratio to 0.54 in January 31, 2024, before returning to 0.50 in January 31, 2025.

This trend indicates that the company may have been less liquid in the earlier years but managed to improve its ability to cover short-term liabilities with cash as of January 31, 2024. However, the cash ratio lowered again in the most recent year. It is essential for the company to monitor its cash position and ensure it has enough liquid assets to meet its short-term obligations.