Salesforce.com Inc (CRM)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 76.95% | 75.47% | 73.66% | 69.12% | 71.79% |
| Operating profit margin | 18.95% | 14.37% | 3.30% | 1.95% | 2.07% |
| Pretax margin | 19.57% | 14.20% | 2.11% | 5.44% | 11.63% |
| Net profit margin | 16.30% | 11.86% | 0.67% | 5.13% | 18.49% |
The gross profit margin of Salesforce.com Inc has shown a decreasing trend from 71.79% in January 31, 2021, to 69.12% in January 31, 2022, before steadily increasing to 76.95% in January 31, 2025, indicating the company's ability to efficiently generate profits from its revenue after accounting for the cost of goods sold.
The operating profit margin has fluctuated over the years, starting at 2.07% in January 31, 2021, reaching a low of 1.95% in January 31, 2022, and then significantly improving to 18.95% in January 31, 2025. This suggests that Salesforce.com Inc has been able to better control its operating expenses and improve profitability from its core business operations.
The pretax margin experienced a similar trend, with a notable decrease in January 31, 2022, followed by a gradual increase to 19.57% in January 31, 2025. This indicates an improvement in the company's overall efficiency in generating profits before taxes.
The net profit margin, which reflects the company's bottom line profitability, has varied significantly, starting at 18.49% in January 31, 2021, dropping to 5.13% in January 31, 2022, and recovering to 16.30% in January 31, 2025. This demonstrates the company's ability to manage its overall expenses and generate higher profits for its shareholders.
Overall, while Salesforce.com Inc has experienced fluctuations in its profitability margins over the years, the trends indicate an overall improvement in efficiency and profitability, particularly in recent years.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.00% | 5.02% | 1.04% | 0.58% | 0.69% |
| Return on assets (ROA) | 6.02% | 4.14% | 0.21% | 1.52% | 6.14% |
| Return on total capital | 10.35% | 7.36% | 1.52% | 0.80% | 1.03% |
| Return on equity (ROE) | 10.13% | 6.93% | 0.36% | 2.48% | 9.81% |
Salesforce.com Inc's profitability ratios show a mixed performance over the years. The Operating Return on Assets (Operating ROA) has fluctuated, with a slight decrease from 2021 to 2022, followed by a significant improvement in 2023 and further increase in 2024 and 2025. This indicates that the company's operating efficiency in generating profits from its assets has shown an upward trend.
In terms of Return on Assets (ROA), there was a substantial decrease from 2021 to 2022, followed by a slight improvement in 2023, and subsequent increases in 2024 and 2025. This suggests variations in the company's ability to generate profits from its total assets but with an overall positive trend in later years.
The Return on Total Capital has shown a similar pattern to the ROA, with fluctuations in the early years and notable improvements in 2024 and 2025, signifying the company's ability to generate returns from its total invested capital.
The Return on Equity (ROE) has followed a similar trend to the aforementioned ratios, indicating that Salesforce.com Inc has been able to generate returns for its shareholders, with substantial improvements in 2024 and 2025.
Overall, while there have been fluctuations in profitability ratios in the past years, the company's performance has shown improvement in later years, pointing towards enhanced profitability and efficiency in utilizing its assets and capital to generate returns for both the company and its shareholders.