Salesforce.com Inc (CRM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.08 | 0.09 | 0.09 | 0.09 | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.12 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 |
| Debt-to-capital ratio | 0.12 | 0.13 | 0.13 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.16 | 0.16 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 |
| Debt-to-equity ratio | 0.14 | 0.14 | 0.15 | 0.14 | 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 |
| Financial leverage ratio | 1.68 | 1.56 | 1.60 | 1.61 | 1.67 | 1.57 | 1.59 | 1.63 | 1.69 | 1.55 | 1.57 | 1.58 | 1.64 | 1.53 | 1.60 | 1.52 | 1.60 | 1.47 | 1.50 | 1.55 |
The solvency ratios of Salesforce.com Inc, as indicated by the debt-to-assets ratio, have been relatively stable between 0.04 and 0.12 over the past few years. This ratio measures the proportion of the company's assets that are financed by debt, with lower values indicating lower financial risk.
The debt-to-capital ratio, which assesses the extent of financial leverage in relation to the company's capital structure, has fluctuated between 0.06 and 0.16. This ratio provides insights into the company's ability to meet its financial obligations and manage its debt levels efficiently.
Moreover, the debt-to-equity ratio, reflecting the proportion of debt to equity in the company's capital structure, has ranged from 0.06 to 0.19. A lower ratio signifies a higher level of equity financing relative to debt, enhancing the company's financial stability and long-term sustainability.
The financial leverage ratio, measuring the company's reliance on debt funding, has shown variations between 1.47 and 1.69. This ratio indicates the company's ability to generate returns on equity capital, with a higher ratio suggesting higher financial risk and potential volatility.
Overall, Salesforce.com Inc's solvency ratios demonstrate a reasonable balance between debt and equity financing, with a focus on maintaining a healthy financial position and managing risks effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage ratio is a financial metric used to assess a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Analyzing the interest coverage ratio of Salesforce.com Inc over the specified time period reveals fluctuations in its ability to cover interest expenses.
- As of April 30, 2020, the interest coverage ratio was negative at -0.44, indicating that the company's EBIT was insufficient to cover its interest expenses, raising concerns about its financial health.
- The ratio improved to 0.60 by July 31, 2020, but remained below 1, suggesting continued challenges in meeting interest payments.
- Subsequently, the interest coverage ratio showed an increasing trend, reaching 50.05 as of October 31, 2024, indicating a significant improvement in the company's ability to cover interest expenses.
- However, the data for January 31, 2025, is missing, making it impossible to provide a complete analysis of the interest coverage ratio for that period.
Overall, the trend in Salesforce.com Inc's interest coverage ratio shows fluctuations over time, with periods of improvement and challenges. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to manage its debt obligations effectively.