Salesforce.com Inc (CRM)
Operating profit margin
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 7,205,000 | 7,007,000 | 6,615,000 | 6,308,000 | 5,011,000 | 3,746,000 | 2,705,000 | 1,422,000 | 1,030,000 | 497,000 | 75,000 | 214,000 | 548,000 | 917,000 | 1,103,000 | 949,000 | 455,000 | 226,000 | 67,000 | -53,000 |
| Revenue (ttm) | US$ in thousands | 38,014,000 | 37,212,000 | 36,503,000 | 35,816,000 | 34,869,000 | 33,714,000 | 32,766,000 | 31,966,000 | 31,213,000 | 30,389,000 | 30,006,000 | 29,252,000 | 28,129,000 | 26,979,000 | 24,988,000 | 23,197,000 | 22,027,000 | 20,756,000 | 19,969,000 | 18,704,000 |
| Operating profit margin | 18.95% | 18.83% | 18.12% | 17.61% | 14.37% | 11.11% | 8.26% | 4.45% | 3.30% | 1.64% | 0.25% | 0.73% | 1.95% | 3.40% | 4.41% | 4.09% | 2.07% | 1.09% | 0.34% | -0.28% |
January 31, 2025 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $7,205,000K ÷ $38,014,000K
= 18.95%
The operating profit margin of Salesforce.com Inc has shown a positive trend over the past few years, indicating improving operational efficiency and profitability.
Starting at a negative margin of -0.28% in April 2020, the company managed to turn it around to reach 18.95% by January 2025. This upward trajectory is a positive sign as it shows that the company is effectively controlling its operating expenses relative to its revenue, resulting in higher profitability.
The significant improvement in the operating profit margin from single-digit percentages to close to 20% over the analyzed period suggests that Salesforce.com Inc has been successful in optimizing its cost structure, increasing sales, or both.
Investors and stakeholders may view this trend favorably as it indicates the company's ability to generate profits from its core operations and create shareholder value. However, it will be essential for Salesforce.com Inc to maintain or further enhance its operating profit margin to sustain its growth and profitability in the competitive market landscape.
Peer comparison
Jan 31, 2025