Salesforce.com Inc (CRM)
Solvency ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.08 | 0.10 | 0.11 | 0.04 | 0.05 |
| Debt-to-capital ratio | 0.12 | 0.14 | 0.15 | 0.06 | 0.07 |
| Debt-to-equity ratio | 0.14 | 0.16 | 0.18 | 0.06 | 0.08 |
| Financial leverage ratio | 1.67 | 1.69 | 1.64 | 1.60 | 1.63 |
The solvency ratios of Salesforce Inc over the past five years indicate a stable and favorable financial position in terms of debt management. The Debt-to-assets ratio has progressively decreased from 0.11 in 2023 to 0.09 in 2024, suggesting that the company's total debt compared to its total assets has decreased, indicating improved solvency and financial health.
Similarly, the Debt-to-capital and Debt-to-equity ratios have also shown a declining trend over the same period, indicating that the company has been able to reduce its reliance on debt financing in relation to both its total capital and equity. This reduction in debt dependency is a positive sign as it signifies a lower financial risk and a stronger ability to cover its debt obligations.
The Financial leverage ratio, which measures the proportion of debt in the company's capital structure, has remained relatively consistent around 1.65 over the past five years. This indicates that Salesforce Inc has maintained a stable level of leverage in financing its operations without significant fluctuations, further reflecting a prudent debt management strategy.
Overall, the solvency ratios of Salesforce Inc demonstrate a solid financial position with well-managed debt levels and a sustainable capital structure, positioning the company well to meet its financial obligations and pursue future growth opportunities.
Coverage ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 172.79 | 3.47 | 2.48 | 3.64 | 2.28 |
Unfortunately, without the specific data for each year, it is not possible to calculate the interest coverage ratio for Salesforce Inc. The interest coverage ratio is a key financial metric that helps assess a company's ability to cover its interest payments on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the total interest expense. A higher interest coverage ratio indicates a company's strong ability to meet its interest obligations. If you can provide the necessary data, I would be happy to calculate and analyze the interest coverage ratio for Salesforce Inc in each respective year.