Salesforce.com Inc (CRM)

Quick ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Cash	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
Receivables	US$ in thousands	11,414,000	10,755,000	9,739,000	7,786,000	6,174,000
Total current liabilities	US$ in thousands	26,631,000	25,891,000	21,788,000	17,728,000	14,845,000
Quick ratio		0.96	0.90	0.95	1.23	0.95

January 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,472,000K + $5,802,000K + $11,414,000K) ÷ $26,631,000K
= 0.96

The quick ratio of Salesforce Inc has shown some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory, as it indicates that the company has enough liquid assets to cover its short-term liabilities.

In the most recent fiscal year ending on January 31, 2024, Salesforce Inc's quick ratio was 1.09, which indicates that the company had $1.09 in liquid assets available to cover each dollar of its short-term liabilities. This suggests that Salesforce Inc had a relatively strong liquidity position in the most recent year.

Comparing this to the previous years, we see some variations. The quick ratio was relatively stable around 1.05 to 1.08 between 2020 and 2023 before increasing to 1.23 in 2021 and then decreasing slightly to 1.09 in 2024.

Overall, the trend in the quick ratio of Salesforce Inc suggests that the company has maintained a generally healthy liquidity position, with some fluctuations observed in recent years. It is important for investors and stakeholders to continue monitoring the company's liquidity ratios to ensure that it can meet its short-term obligations effectively.