Salesforce.com Inc (CRM)

Debt-to-equity ratio

		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	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Long-term debt	US$ in thousands	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	2,673,000	2,824,000	2,973,000	3,173,000
Total stockholders’ equity	US$ in thousands	59,646,000	58,090,000	58,082,000	57,412,000	58,359,000	59,351,000	60,098,000	58,876,000	58,131,000	57,054,000	55,520,000	42,567,000	41,493,000	40,310,000	38,440,000	34,565,000	33,885,000	33,279,000	17,166,000	16,446,000
Debt-to-equity ratio		0.14	0.15	0.15	0.16	0.16	0.16	0.16	0.16	0.18	0.19	0.19	0.06	0.06	0.07	0.07	0.08	0.08	0.08	0.17	0.19

January 31, 2024 calculation

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

Salesforce Inc's debt-to-equity ratio has been relatively stable over the past eight quarters, ranging from 0.16 to 0.18. A debt-to-equity ratio of less than 1 indicates that the company relies more on equity financing rather than debt to fund its operations, which is generally viewed favorably by investors as it suggests lower financial risk. The consistent ratio suggests that Salesforce Inc has a balanced capital structure with a healthy mix of debt and equity, enabling it to effectively manage its financial obligations. Additionally, the slight fluctuations in the ratio over the quarters may be attributed to changes in the company's debt levels and equity financing strategies. Overall, the stable debt-to-equity ratio indicates sound financial health and prudent financial management by Salesforce Inc.