Salesforce.com Inc (CRM)

Return on total capital

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
Earnings before interest and tax (EBIT) (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
Long-term debt US$ in thousands 8,433,000 8,432,000 8,430,000 8,429,000 8,427,000 8,426,000 8,424,000 9,421,000 9,419,000 9,418,000 9,416,000 9,595,000 10,592,000 10,591,000 10,589,000 2,672,000 2,673,000 2,672,000 2,673,000 2,673,000
Total stockholders’ equity US$ in thousands 61,173,000 58,525,000 57,633,000 59,683,000 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
Return on total capital 10.35% 10.46% 10.01% 9.26% 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%

January 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $7,205,000K ÷ ($8,433,000K + $61,173,000K)
= 10.35%

Salesforce.com Inc's return on total capital has shown variability over the periods provided in the data. The ratio started at a negative level of -0.14% as of April 30, 2020, indicating a loss on capital employed. However, there was a notable improvement in subsequent periods, with the return on total capital gradually increasing to 10.35% as of January 31, 2025.

During the analyzed period, the return on total capital fluctuated, indicating potential shifts in the company's profitability and efficiency in generating returns from its capital investments. The increasing trend from negative values to double-digit percentages suggests an enhancement in Salesforce.com Inc's ability to generate profits relative to the capital invested, showcasing potential positive developments in the company's operational performance and allocation of resources.