Salesforce.com Inc (CRM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,472,000 | 6,453,000 | 6,772,000 | 9,155,000 | 7,016,000 | 6,076,000 | 6,931,000 | 6,859,000 | 5,464,000 | 4,753,000 | 6,299,000 | 8,544,000 | 6,195,000 | 3,724,000 | 4,052,000 | 5,772,000 | 4,145,000 | 3,868,000 | 3,510,000 | 4,110,000 |
| Short-term investments | US$ in thousands | 5,802,000 | 5,461,000 | 5,677,000 | 4,864,000 | 5,540,000 | 6,021,000 | 6,827,000 | 6,890,000 | 5,443,000 | 5,241,000 | 4,362,000 | 7,830,000 | 7,839,000 | 8,029,000 | 6,095,000 | 4,030,000 | 3,802,000 | 2,661,000 | 2,532,000 | 2,269,000 |
| Total current liabilities | US$ in thousands | 26,631,000 | 19,394,000 | 20,805,000 | 21,626,000 | 25,891,000 | 18,227,000 | 20,080,000 | 19,899,000 | 21,788,000 | 15,035,000 | 17,393,000 | 15,323,000 | 17,728,000 | 12,234,000 | 12,963,000 | 12,843,000 | 14,845,000 | 10,474,000 | 10,195,000 | 10,488,000 |
| Cash ratio | 0.54 | 0.61 | 0.60 | 0.65 | 0.48 | 0.66 | 0.69 | 0.69 | 0.50 | 0.66 | 0.61 | 1.07 | 0.79 | 0.96 | 0.78 | 0.76 | 0.54 | 0.62 | 0.59 | 0.61 |
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 of Salesforce Inc has exhibited fluctuations over the past eight quarters. The ratio ranged from a low of 0.60 in Q4 2023 to a high of 0.83 in Q2 2023 and Q1 2023. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations.
In particular, the cash ratio decreased from Q1 2023 to Q4 2023 but showed improvement in Q1 2024. However, the ratio declined in Q2 2024 before picking up slightly in Q3 and Q4 of 2024.
It is essential for investors and analysts to monitor the cash ratio trend to assess the company's liquidity position and its ability to manage short-term obligations effectively. The fluctuations in the cash ratio of Salesforce Inc suggest varying levels of cash and cash equivalents relative to its current liabilities, highlighting the importance of maintaining a balance between liquidity and operational needs.
Peer comparison
Jan 31, 2024