Salesforce.com Inc (CRM)

Operating return on assets (Operating ROA)

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
Total assets US$ in thousands 102,928,000 91,395,000 92,180,000 96,180,000 99,823,000 91,022,000 92,447,000 93,541,000 98,849,000 91,884,000 94,148,000 93,022,000 95,209,000 87,436,000 88,658,000 64,885,000 66,301,000 59,136,000 57,780,000 53,623,000
Operating ROA 7.00% 7.67% 7.18% 6.56% 5.02% 4.12% 2.93% 1.52% 1.04% 0.54% 0.08% 0.23% 0.58% 1.05% 1.24% 1.46% 0.69% 0.38% 0.12% -0.10%

January 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $7,205,000K ÷ $102,928,000K
= 7.00%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profit from its assets used in operations. Salesforce.com Inc's Operating ROA has shown fluctuating trends over the period from April 30, 2020, to January 31, 2025.

• On April 30, 2020, the Operating ROA was -0.10%, indicating that the company's operating income was negative relative to its assets.
• The ratio improved to 0.12% by July 31, 2020, signifying a slight recovery in profitability.
• Subsequently, there was a steady increase in performance, with Operating ROA reaching 7.67% by October 31, 2024.
• However, by January 31, 2025, the ratio had declined to 7.00%.

The fluctuation in Operating ROA suggests changes in the company's operational efficiency and asset utilization over time. A higher Operating ROA indicates that Salesforce.com Inc is efficiently using its assets to generate operating income, while a lower ratio suggests potential challenges in asset management and operational profitability. Investors and stakeholders may use this ratio to assess the effectiveness of the company's operations in generating profits relative to its asset base.