Salesforce.com Inc (CRM)

Debt-to-capital ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Long-term debt	US$ in thousands	8,427,000	9,419,000	10,592,000	2,673,000	2,673,000
Total stockholders’ equity	US$ in thousands	59,646,000	58,359,000	58,131,000	41,493,000	33,885,000
Debt-to-capital ratio		0.12	0.14	0.15	0.06	0.07

January 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,427,000K ÷ ($8,427,000K + $59,646,000K)
= 0.12

The debt-to-capital ratio of Salesforce Inc has been relatively stable over the past five years, fluctuating within a narrow range. In the latest fiscal year ending January 31, 2024, the debt-to-capital ratio stood at 0.14, indicating that 14% of the company's capital structure was funded by debt. This ratio decreased slightly from the previous year, where it was 0.15.

Comparing the current ratio to two years ago, there has been a noticeable increase from 0.06 to 0.14, signifying a higher proportion of debt in the capital structure. However, it is important to note that the ratio remains at a manageable level, indicating that Salesforce Inc has a prudent level of debt relative to its total capital.

Overall, the trend in the debt-to-capital ratio suggests that Salesforce Inc has maintained a balanced capital structure with a conservative approach to debt financing, which may positively impact its financial stability and ability to weather economic challenges.