Salesforce.com Inc (CRM)
Profitability ratios
Return on sales
| 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 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 75.47% | 75.52% | 75.22% | 74.29% | 73.66% | 72.46% | 70.95% | 69.82% | 69.20% | 68.54% | 70.03% | 71.61% | 71.79% | 72.78% | 72.42% | 72.98% | 73.63% | 73.29% | 73.66% | 72.80% |
| Operating profit margin | 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% | 1.70% | 2.90% | 3.32% | 3.87% |
| Pretax margin | 14.20% | 9.90% | 7.10% | 3.18% | 2.11% | 1.41% | 0.85% | 3.07% | 5.45% | 7.98% | 12.43% | 13.44% | 11.63% | 10.27% | 4.74% | 1.45% | 4.04% | 5.85% | 6.78% | 7.55% |
| Net profit margin | 11.86% | 7.69% | 4.82% | 1.19% | 0.67% | 0.91% | 1.79% | 3.43% | 5.13% | 6.45% | 9.41% | 19.15% | 18.49% | 17.14% | 11.85% | -0.89% | 0.72% | 4.54% | 6.35% | 8.09% |
Salesforce Inc has shown consistent improvement in its profitability ratios over the past eight quarters. The gross profit margin has increased steadily from Q1 2023 to Q4 2024, indicating effective cost management and pricing strategies. The operating profit margin has also shown a significant upward trend, reflecting the company's ability to control operating expenses and increase operational efficiency. Furthermore, the pretax margin has more than doubled from Q1 2023 to Q4 2024, suggesting improved revenue generation and lower tax expenses.
The most notable improvement can be seen in the net profit margin, which has shown a remarkable increase from 0.66% in Q4 2023 to 11.87% in Q4 2024. This indicates that Salesforce Inc has significantly enhanced its bottom line profitability through better cost control, revenue growth, and operational efficiency. Overall, the company's profitability ratios reflect a positive trend, signaling strong financial performance and sustainable growth prospects in the future.
Return on investment
| 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 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 0.54% | 0.94% | 1.49% | 1.67% |
| Return on assets (ROA) | 4.14% | 2.85% | 1.71% | 0.41% | 0.21% | 0.30% | 0.57% | 1.08% | 1.52% | 1.99% | 2.65% | 6.85% | 6.14% | 6.01% | 4.10% | -0.31% | 0.23% | 1.47% | 2.85% | 3.49% |
| Return on total capital | 7.36% | 5.63% | 4.07% | 2.13% | 1.52% | 0.72% | 0.11% | 0.31% | 0.80% | 1.36% | 1.67% | 2.10% | 1.03% | 0.53% | 0.16% | -0.14% | 0.81% | 1.70% | 3.56% | 4.73% |
| Return on equity (ROE) | 6.93% | 4.46% | 2.72% | 0.66% | 0.36% | 0.47% | 0.89% | 1.70% | 2.48% | 3.05% | 4.24% | 10.44% | 9.81% | 8.82% | 6.16% | -0.48% | 0.37% | 2.21% | 5.53% | 7.04% |
Salesforce Inc's profitability ratios show a positive trend over the past quarters. The Operating return on assets (Operating ROA) has been increasing steadily, from 1.88% in Q4 2023 to 6.01% in Q4 2024, indicating that the company is efficiently generating operating income relative to its total assets.
The Return on assets (ROA) has also shown improvement, moving from 0.21% in Q4 2023 to 4.14% in Q4 2024, demonstrating that the company is becoming more profitable in utilizing its assets to generate earnings.
The Return on total capital has increased consistently, reaching 8.69% in Q4 2024, suggesting that Salesforce Inc is effectively generating returns on the total capital invested in the business.
Lastly, the Return on equity (ROE) has exhibited growth, with Q4 2024 showing an ROE of 6.93%, indicating that the company is producing a higher return on the equity invested by shareholders.
Overall, the profitability ratios of Salesforce Inc reflect a positive trajectory and indicate that the company is efficiently utilizing its resources to generate earnings and create value for its shareholders.