Salesforce.com Inc (CRM)

Return on equity (ROE)

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Net income	US$ in thousands	6,197,000	4,136,000	208,000	1,444,000	4,072,000
Total stockholders’ equity	US$ in thousands	61,173,000	59,646,000	58,359,000	58,131,000	41,493,000
ROE		10.13%	6.93%	0.36%	2.48%	9.81%

January 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $6,197,000K ÷ $61,173,000K
= 10.13%

The return on equity (ROE) of Salesforce.com Inc has shown fluctuating trends over the past five years.

In January 2021, the ROE stood at 9.81%, indicating that the company generated $9.81 in net income for each dollar of shareholder's equity. However, by January 2022, the ROE decreased significantly to 2.48%, which may suggest a decline in profitability or less efficient utilization of equity.

The trend continued in January 2023, with the ROE dropping to 0.36%, reflecting a sharp decline in the company's ability to generate returns for its shareholders. This could raise concerns about the company's profitability and operational efficiency.

Subsequently, in January 2024, there was a moderate recovery in the ROE to 6.93%, hinting at some improvements in the company's performance or financial management strategies.

Finally, the ROE in January 2025 increased further to 10.13%, indicating a better return on equity and suggesting improved profitability and efficiency in utilizing shareholder's equity.

Overall, the fluctuating ROE of Salesforce.com Inc over the five-year period indicates varying levels of profitability and efficiency in generating returns for its shareholders. Investors and stakeholders may want to monitor these trends closely to evaluate the company's financial performance and sustainability in the long term.