Salesforce.com Inc (CRM)
Profitability ratios
Return on sales
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 75.47% | 73.66% | 69.12% | 71.79% | 74.26% |
| Operating profit margin | 14.37% | 3.30% | 1.95% | 2.07% | 1.71% |
| Pretax margin | 14.20% | 2.11% | 5.44% | 11.63% | 4.08% |
| Net profit margin | 11.86% | 0.67% | 5.13% | 18.49% | 0.73% |
The profitability ratios of Salesforce Inc have shown variations over the past five years. The gross profit margin has remained relatively stable, ranging from 73.34% to 75.50%. This indicates consistent efficiency in generating profit from sales after deducting the cost of goods sold.
The operating profit margin has shown significant improvement over the period, increasing from 2.07% in 2022 to 17.21% in 2024. This suggests that the company has been able to control its operating expenses more effectively and generate higher profits from its core operations.
The pretax margin has fluctuated over the years, with a notable increase in 2024 to 14.20% compared to 2.11% in 2023. This indicates the company's ability to generate profits before accounting for taxes, with a significant improvement in the most recent year.
The net profit margin has also shown fluctuations, with a substantial increase to 11.87% in 2024 from 0.66% in 2023. This demonstrates the company's ability to generate profits after accounting for all expenses, including taxes.
Overall, the profitability ratios of Salesforce Inc have shown an upward trend, indicating improvements in operational efficiency and profitability over the past five years.
Return on investment
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.02% | 1.04% | 0.58% | 0.69% | 0.54% |
| Return on assets (ROA) | 4.14% | 0.21% | 1.52% | 6.14% | 0.23% |
| Return on total capital | 7.36% | 1.52% | 0.80% | 1.03% | 0.81% |
| Return on equity (ROE) | 6.93% | 0.36% | 2.48% | 9.81% | 0.37% |
The profitability ratios of Salesforce Inc have shown some fluctuations over the past five years.
Operating return on assets (Operating ROA) has increased steadily from 0.58% in January 2022 to 6.01% in January 2024, indicating that the company has been able to generate more operating income from its assets over time.
Return on assets (ROA) had a significant increase in January 2024 compared to the previous year, reaching 4.14%. This indicates that Salesforce Inc has been able to generate more profits relative to its total assets.
Return on total capital also showed an upward trend, increasing to 8.69% in January 2024, which suggests that the company has been able to generate higher returns from its total capital investment.
Return on equity (ROE) has fluctuated over the years with a notable peak in January 2021 at 9.81%. In January 2024, ROE stood at 6.93%, indicating that Salesforce Inc has been able to generate a reasonable return for its shareholders, albeit slightly lower than the peak.
Overall, the profitability ratios of Salesforce Inc reflect improvements in generating returns from assets, total capital, and equity, indicating positive trends in the company's operational efficiency and financial performance.