Salesforce.com Inc (CRM)
Financial leverage ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 99,823,000 | 98,849,000 | 95,209,000 | 66,301,000 | 55,126,000 |
| Total stockholders’ equity | US$ in thousands | 59,646,000 | 58,359,000 | 58,131,000 | 41,493,000 | 33,885,000 |
| Financial leverage ratio | 1.67 | 1.69 | 1.64 | 1.60 | 1.63 |
January 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $99,823,000K ÷ $59,646,000K
= 1.67
The financial leverage ratio of Salesforce Inc has shown a slight fluctuation over the past five years. The ratio was 1.63 in January 2020, increasing to 1.64 in January 2022, and then declining to 1.60 in January 2021. Subsequently, it increased to 1.69 in January 2023 and then slightly decreased to 1.67 in January 2024.
The variations in the financial leverage ratio suggest that Salesforce Inc has been utilizing a mix of debt and equity to finance its operations and growth initiatives. A ratio above 1 indicates that the company relies more on debt financing, while a ratio below 1 suggests a stronger reliance on equity.
Overall, the trend in the financial leverage ratio indicates that Salesforce Inc has maintained a relatively stable capital structure over the years, balancing its debt and equity components to support its business activities. Further analysis of the company's debt levels, profitability, and cash flow would provide a more detailed understanding of its financial health and leverage strategy.
Peer comparison
Jan 31, 2024