Salesforce.com Inc (CRM)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	102,928,000	91,395,000	92,180,000	96,180,000	99,823,000	91,022,000	92,447,000	93,541,000	98,849,000	91,884,000	94,148,000	93,022,000	95,209,000	87,436,000	88,658,000	64,885,000	66,301,000	59,136,000	57,780,000	53,623,000
Debt-to-assets ratio		0.08	0.09	0.09	0.09	0.08	0.09	0.09	0.10	0.10	0.10	0.10	0.10	0.11	0.12	0.12	0.04	0.04	0.05	0.05	0.05

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 gradual decrease over the years, indicating a positive trend in the company's ability to finance its assets with debt. Starting at 0.05 as of April 30, 2020, the ratio remained stable at the same level through October 31, 2020, and January 31, 2021. Subsequently, the ratio slightly decreased to 0.04 by April 30, 2021, which was an improvement in the company's debt management.

However, there was a significant spike in the debt-to-assets ratio to 0.12 as of July 31, 2021, signaling a higher reliance on debt to finance assets. This high ratio was sustained through October 31, 2021, and January 31, 2022, indicating a potential increase in the company's debt levels. From April 30, 2022, to July 31, 2023, the ratio remained relatively stable at around 0.10, showcasing a controlled level of debt relative to assets.

Notably, there was a slight decline in the ratio to 0.09 by January 31, 2024, which was maintained through the following quarters up to January 31, 2025. This declining trend indicates that Salesforce.com Inc is efficiently managing its debt levels in relation to its asset base, thereby potentially reducing financial risk. Overall, the decreasing trend in the debt-to-assets ratio reflects a positive financial position for the company in terms of leveraging debt to support its asset investments.