Salesforce.com Inc (CRM)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,205,000 | 7,007,000 | 6,615,000 | 6,308,000 | 5,011,000 | 3,746,000 | 2,705,000 | 1,422,000 | 1,030,000 | 497,000 | 75,000 | 214,000 | 548,000 | 917,000 | 1,103,000 | 949,000 | 455,000 | 226,000 | 67,000 | -53,000 |
| Interest expense (ttm) | US$ in thousands | 0 | 140,000 | 210,000 | 280,000 | 354,000 | 277,000 | 282,000 | 288,000 | 288,000 | 301,000 | 298,000 | 262,000 | 221,000 | 195,000 | 148,000 | 133,000 | 125,000 | 105,000 | 111,000 | 120,000 |
| Interest coverage | — | 50.05 | 31.50 | 22.53 | 14.16 | 13.52 | 9.59 | 4.94 | 3.58 | 1.65 | 0.25 | 0.82 | 2.48 | 4.70 | 7.45 | 7.14 | 3.64 | 2.15 | 0.60 | -0.44 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $7,205,000K ÷ $0K
= —
Salesforce.com Inc's interest coverage ratio has displayed significant fluctuations over the past few years, as indicated by the data provided. The interest coverage ratio, which measures the company's ability to cover its interest expenses with its operating income, indicates the extent to which Salesforce is capable of meeting its interest payments.
Analyzing the trend, we observe that the company's interest coverage ratio was negative as of April 30, 2020, implying that the company's operating income was insufficient to cover its interest expenses. However, the ratio improved and turned positive in subsequent periods, indicating a better ability to cover interest payments.
The interest coverage ratio increased notably from October 31, 2020 to July 31, 2021, reaching its highest level of 31.50 as of July 31, 2024. This substantial increase indicates that Salesforce significantly improved its ability to cover its interest expenses over these periods.
However, the interest coverage ratio began to decline from its peak in July 2024, although it still remained at a relatively high level as of the last available data point on October 31, 2024.
It is important to note that an interest coverage ratio above 1 indicates that a company is generating enough operating income to cover its interest obligations, with higher ratios generally being more favorable. It appears that Salesforce.com Inc has generally shown an improving trend in its ability to cover interest expenses, although there have been periods of fluctuations.
Given the data provided, further monitoring of Salesforce.com Inc's interest coverage ratio will be crucial to assess its financial health and ability to meet its debt obligations in the future.
Peer comparison
Jan 31, 2025