Salesforce.com Inc (CRM)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	297,000	613,000	716,000	928,000
Long-term debt	US$ in thousands	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	2,673,000	2,824,000	2,973,000	3,173,000
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
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%

January 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,011,000K ÷ ($8,427,000K + $59,646,000K)
= 7.36%

The return on total capital for Salesforce Inc has shown a positive trend over the past eight quarters, with consistent improvements in performance. The return on total capital has increased gradually from 0.31% in Q1 2023 to 8.69% in Q4 2024, indicating the company's ability to generate profit relative to the total capital employed in its operations. This upward trajectory suggests that Salesforce Inc has been effectively utilizing its capital resources to generate returns for its shareholders and stakeholders. The trend reflects well on the company's operational efficiency and overall financial health.