Salesforce.com Inc (CRM)
Cash ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,472,000 | 7,016,000 | 5,464,000 | 6,195,000 | 4,145,000 |
| Short-term investments | US$ in thousands | 5,802,000 | 5,540,000 | 5,443,000 | 7,839,000 | 3,802,000 |
| Total current liabilities | US$ in thousands | 26,631,000 | 25,891,000 | 21,788,000 | 17,728,000 | 14,845,000 |
| Cash ratio | 0.54 | 0.48 | 0.50 | 0.79 | 0.54 |
January 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,472,000K
+ $5,802,000K)
÷ $26,631,000K
= 0.54
The cash ratio for Salesforce Inc has fluctuated over the past five years, ranging from 0.60 to 0.80. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
In 2024, the cash ratio stands at 0.66, slightly above the 2023 and 2022 levels of 0.60 but below the 2021 level of 0.80. This suggests that Salesforce Inc may have a moderate ability to meet its short-term liabilities with its available cash and cash equivalents.
It is important for investors and analysts to monitor changes in the cash ratio over time to assess the company's liquidity position and its ability to weather unexpected financial challenges. Further analysis of cash flow trends and overall financial health would provide a more complete picture of Salesforce Inc's financial standing.
Peer comparison
Jan 31, 2024