Salesforce.com Inc (CRM)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 4,136,000 | 2,592,000 | 1,578,000 | 379,000 | 208,000 | 278,000 | 536,000 | 1,003,000 | 1,444,000 | 1,739,000 | 2,352,000 | 4,442,000 | 4,072,000 | 3,557,000 | 2,367,000 | -167,000 | 126,000 | 736,000 | 950,000 | 1,158,000 |
| Total stockholders’ equity | US$ in thousands | 59,646,000 | 58,090,000 | 58,082,000 | 57,412,000 | 58,359,000 | 59,351,000 | 60,098,000 | 58,876,000 | 58,131,000 | 57,054,000 | 55,520,000 | 42,567,000 | 41,493,000 | 40,310,000 | 38,440,000 | 34,565,000 | 33,885,000 | 33,279,000 | 17,166,000 | 16,446,000 |
| 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% |
January 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,136,000K ÷ $59,646,000K
= 6.93%
To analyze Salesforce Inc's return on equity (ROE) over the past eight quarters, we can observe a gradual increase in ROE from Q1 2023 to Q4 2024.
In Q1 2023, the ROE stood at a mere 1.70%, displaying relatively low profitability in relation to shareholders' equity. However, a positive trend began to emerge in the subsequent quarters. From Q2 2023 to Q4 2023, there was a steady improvement in ROE, albeit at a relatively slow pace.
The most significant change occurred in the first quarter of 2024 (Q1 2024) when the ROE notably increased to 6.93%, marking a substantial improvement in profitability. This trend continued in Q2 and Q3 2024, reaching 2.72% and 4.46%, respectively.
Overall, this trend indicates that Salesforce Inc has been gradually improving its ability to generate profits from the shareholders' equity invested in the company. However, it's essential to monitor future quarters to assess the sustainability of this positive trend and determine the company's long-term profitability prospects.
Peer comparison
Jan 31, 2024