Salesforce.com Inc (CRM)

Debt-to-assets ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Long-term debt	US$ in thousands	8,433,000	8,427,000	9,419,000	10,592,000	2,673,000
Total assets	US$ in thousands	102,928,000	99,823,000	98,849,000	95,209,000	66,301,000
Debt-to-assets ratio		0.08	0.08	0.10	0.11	0.04

January 31, 2025 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,433,000K ÷ $102,928,000K
= 0.08

The debt-to-assets ratio of Salesforce.com Inc has shown a fluctuating trend over the past five years. As of January 31, 2021, the ratio was at a low of 0.04, indicating that only 4% of the company's assets were financed by debt. However, by January 31, 2022, the ratio had increased to 0.11, suggesting that 11% of assets were funded by debt, representing a substantial rise in leverage.

In the subsequent years, the debt-to-assets ratio remained relatively stable, with values of 0.10 as of January 31, 2023, and 0.08 both on January 31, 2024, and January 31, 2025. This stability implies that the company has been efficiently managing its debt levels relative to its asset base during these years.

Overall, the debt-to-assets ratio analysis indicates that Salesforce.com Inc has maintained a moderate level of leverage, with the exception of the significant increase in 2022. This suggests a balanced approach to financing its operations and investments, aiming to minimize financial risks while maximizing the returns for its stakeholders.