Salesforce.com Inc (CRM)
Solvency ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.08 | 0.08 | 0.10 | 0.11 | 0.04 |
| Debt-to-capital ratio | 0.12 | 0.12 | 0.14 | 0.15 | 0.06 |
| Debt-to-equity ratio | 0.14 | 0.14 | 0.16 | 0.18 | 0.06 |
| Financial leverage ratio | 1.68 | 1.67 | 1.69 | 1.64 | 1.60 |
Based on the provided data, we can see that Salesforce.com Inc's solvency ratios have shown some fluctuations over the past five years.
The Debt-to-assets ratio has been relatively stable, starting at 0.04 in January 31, 2021, increasing to 0.11 in January 31, 2022, but then gradually decreasing to 0.08 by January 31, 2024 where it has remained stable.
The Debt-to-capital ratio follows a similar trend, starting at 0.06 in January 31, 2021, increasing to 0.15 by January 31, 2022, and then stabilizing at around 0.12 from January 31, 2024 onwards.
The Debt-to-equity ratio has shown a similar pattern, starting at 0.06 in January 31, 2021, increasing to 0.18 in January 31, 2022, and then gradually declining to 0.14 by January 31, 2024 where it has remained steady.
The Financial leverage ratio has also shown a slight increase over the period, starting at 1.60 in January 31, 2021, and increasing to 1.68 by January 31, 2025, with some fluctuations in between.
Overall, the company's solvency ratios indicate that while there have been some fluctuations, the company has managed its debt levels relatively well and maintained a stable financial position over the analyzed period, with the Debt-to-assets, Debt-to-capital, and Debt-to-equity ratios remaining within acceptable levels.
Coverage ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 26.49 | 172.79 | 3.47 | 2.48 | 3.64 |
The interest coverage ratio for Salesforce.com Inc fluctuated over the years based on the data provided. In January 2021, the ratio stood at 3.64, indicating that the company generated operating income 3.64 times greater than its interest expenses. However, by January 2022, the interest coverage ratio decreased to 2.48, which suggests the company's ability to cover its interest payments declined.
Subsequently, there was an improvement in the interest coverage ratio to 3.47 by January 2023, indicating a better ability to meet interest obligations. A significant increase was observed in January 2024, with the interest coverage ratio skyrocketing to 172.79, which may indicate a one-time event impacting the ratio positively or a significant improvement in the company's operating performance.
By January 2025, the interest coverage ratio decreased to 26.49, still significantly above the level observed in the earlier years. Overall, the fluctuation in the interest coverage ratio over the years reflects variations in the company's ability to cover its interest expenses with its operating income, with 2024 standing out as a year of exceptionally high coverage.