Salesforce.com Inc (CRM)

Operating return on assets (Operating ROA)

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Operating income	US$ in thousands	5,011,000	1,030,000	548,000	455,000	297,000
Total assets	US$ in thousands	99,823,000	98,849,000	95,209,000	66,301,000	55,126,000
Operating ROA		5.02%	1.04%	0.58%	0.69%	0.54%

January 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $5,011,000K ÷ $99,823,000K
= 5.02%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profits from its assets. Looking at the trend of Salesforce Inc's Operating ROA over the past five years, we observe a significant improvement in performance.

In FY2024, Salesforce Inc's Operating ROA stood at 6.01%, marking a substantial increase from the previous year's 1.88%. This indicates that the company generated $0.0601 in operating profit for every dollar of assets deployed in its operations. The notable jump in Operating ROA suggests that Salesforce Inc effectively utilized its assets to generate operating income, reflecting improved operational efficiency and profitability.

Comparing the FY2024 Operating ROA to the figures in the prior years, we can see a positive trend of performance enhancement. The Operating ROA has shown a steady incline from 0.58% in FY2022 to 6.01% in FY2024. This consistent improvement indicates that Salesforce Inc has been successful in optimizing its asset base to generate higher operating returns over time.

Overall, the increasing trend in Salesforce Inc's Operating ROA signifies the company's ability to efficiently manage its assets and convert them into operating profits. This positive performance trend indicates a strengthening operational efficiency and profitability, which is a positive signal for investors and stakeholders.