Salesforce.com Inc (CRM)
Return on total capital
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,205,000 | 5,011,000 | 1,030,000 | 548,000 | 455,000 |
| Long-term debt | US$ in thousands | 8,433,000 | 8,427,000 | 9,419,000 | 10,592,000 | 2,673,000 |
| Total stockholders’ equity | US$ in thousands | 61,173,000 | 59,646,000 | 58,359,000 | 58,131,000 | 41,493,000 |
| Return on total capital | 10.35% | 7.36% | 1.52% | 0.80% | 1.03% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,205,000K ÷ ($8,433,000K + $61,173,000K)
= 10.35%
From the data provided, the return on total capital for Salesforce.com Inc has shown fluctuating trends over the past few years. Starting at 1.03% in January 2021, it decreased slightly to 0.80% in January 2022. However, there was a notable improvement in January 2023 with a return of 1.52%.
The trend took a significant positive turn in January 2024, where the return on total capital surged to 7.36%. This significant increase suggests that the company might have implemented strategies to enhance the utilization of its total capital more effectively.
The latest data point in January 2025 shows an even more substantial improvement, with the return on total capital soaring to 10.35%. This indicates that Salesforce.com Inc has been able to generate significantly higher returns relative to the total capital employed, possibly through increased operational efficiency or higher revenue generation.
Overall, the trend in return on total capital for Salesforce.com Inc has shown variability but has demonstrated a strong upward trajectory in recent years, signifying improved utilization of capital and potentially suggesting positive developments within the company.
Peer comparison
Jan 31, 2025