Salesforce.com Inc (CRM)

Debt-to-equity 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-equity ratio		0.14	0.16	0.18	0.06	0.08

January 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,427,000K ÷ $59,646,000K
= 0.14

The debt-to-equity ratio of Salesforce Inc has shown a fluctuating trend over the past five years. The ratio was 0.16 in Jan 31, 2024, indicating that for every dollar of equity, there is $0.16 of debt. Comparing this to previous years, the ratio was 0.18 in Jan 31, 2023 and Jan 31, 2022. This suggests that the company had slightly lower leverage in the most recent year.

However, in Jan 31, 2021, the ratio was significantly lower at 0.06. This indicates a lower level of debt relative to equity, implying a more conservative capital structure. Similarly, in Jan 31, 2020, the ratio was 0.08, which was still lower compared to the more recent years.

Overall, the debt-to-equity ratio of Salesforce Inc has generally remained relatively low over the past five years, with some fluctuations. This could suggest that the company has been conservative in its use of debt to finance its operations and growth, which may indicate a lower financial risk profile.