Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Salesforce Inc., liquidity ratios
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Salesforce Inc. current ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Salesforce Inc. quick ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Salesforce Inc. cash ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Current Ratio
Salesforce Inc., current ratio calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 29,074) | 26,395) | 22,850) | 21,889) | 15,963) | 10,683) | |
| Current liabilities | 26,631) | 25,891) | 21,788) | 17,728) | 14,845) | 11,255) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.09 | 1.02 | 1.05 | 1.23 | 1.08 | 0.95 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | — | 1.30 | 1.23 | 1.25 | 1.40 | 1.40 | |
| Adobe Inc. | — | 1.34 | 1.11 | 1.25 | 1.48 | 0.79 | |
| International Business Machines Corp. | — | 0.96 | 0.92 | 0.88 | 0.98 | 1.02 | |
| Intuit Inc. | — | 1.47 | 1.39 | 1.94 | 2.26 | 1.83 | |
| Microsoft Corp. | — | 1.77 | 1.78 | 2.08 | 2.52 | 2.53 | |
| Oracle Corp. | — | 0.91 | 1.62 | 2.30 | 3.03 | 2.49 | |
| Palo Alto Networks Inc. | — | 0.78 | 0.77 | 0.91 | 1.91 | 1.78 | |
| ServiceNow Inc. | — | 1.06 | 1.11 | 1.05 | 1.21 | 1.03 | |
| Synopsys Inc. | — | 1.15 | 1.09 | 1.16 | 1.19 | 0.99 | |
| Current Ratio, Sector | |||||||
| Software & Services | — | 1.37 | 1.42 | 1.67 | 1.92 | 1.85 | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.46 | 1.44 | 1.64 | 1.85 | 1.77 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 29,074 ÷ 26,631 = 1.09
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Salesforce Inc. current ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Quick Ratio
Salesforce Inc., quick ratio calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 8,472) | 7,016) | 5,464) | 6,195) | 4,145) | 2,669) | |
| Marketable securities | 5,722) | 5,492) | 5,073) | 5,771) | 3,802) | 1,673) | |
| Accounts receivable, net | 11,414) | 10,755) | 9,739) | 7,786) | 6,174) | 4,924) | |
| Total quick assets | 25,608) | 23,263) | 20,276) | 19,752) | 14,121) | 9,266) | |
| Current liabilities | 26,631) | 25,891) | 21,788) | 17,728) | 14,845) | 11,255) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.96 | 0.90 | 0.93 | 1.11 | 0.95 | 0.82 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | — | 1.18 | 1.12 | 1.14 | 1.29 | 1.29 | |
| Adobe Inc. | — | 1.22 | 1.00 | 1.11 | 1.34 | 0.70 | |
| International Business Machines Corp. | — | 0.80 | 0.73 | 0.67 | 0.83 | 0.87 | |
| Intuit Inc. | — | 1.25 | 1.17 | 1.65 | 2.04 | 1.44 | |
| Microsoft Corp. | — | 1.54 | 1.57 | 1.90 | 2.33 | 2.35 | |
| Oracle Corp. | — | 0.74 | 1.43 | 2.15 | 2.83 | 2.31 | |
| Palo Alto Networks Inc. | — | 0.72 | 0.75 | 0.88 | 1.85 | 1.72 | |
| ServiceNow Inc. | — | 1.00 | 1.06 | 1.01 | 1.16 | 0.98 | |
| Synopsys Inc. | — | 0.85 | 0.85 | 0.89 | 0.94 | 0.73 | |
| Quick Ratio, Sector | |||||||
| Software & Services | — | 1.19 | 1.25 | 1.51 | 1.76 | 1.69 | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 1.17 | 1.15 | 1.38 | 1.60 | 1.55 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 25,608 ÷ 26,631 = 0.96
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Salesforce Inc. quick ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Cash Ratio
Salesforce Inc., cash ratio calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 8,472) | 7,016) | 5,464) | 6,195) | 4,145) | 2,669) | |
| Marketable securities | 5,722) | 5,492) | 5,073) | 5,771) | 3,802) | 1,673) | |
| Total cash assets | 14,194) | 12,508) | 10,537) | 11,966) | 7,947) | 4,342) | |
| Current liabilities | 26,631) | 25,891) | 21,788) | 17,728) | 14,845) | 11,255) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.53 | 0.48 | 0.48 | 0.67 | 0.54 | 0.39 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | — | 0.50 | 0.45 | 0.52 | 0.67 | 0.55 | |
| Adobe Inc. | — | 0.95 | 0.75 | 0.84 | 1.09 | 0.51 | |
| International Business Machines Corp. | — | 0.39 | 0.28 | 0.22 | 0.36 | 0.24 | |
| Intuit Inc. | — | 0.97 | 0.90 | 1.46 | 2.00 | 1.39 | |
| Microsoft Corp. | — | 1.07 | 1.10 | 1.47 | 1.89 | 1.93 | |
| Oracle Corp. | — | 0.44 | 1.12 | 1.93 | 2.50 | 2.03 | |
| Palo Alto Networks Inc. | — | 0.31 | 0.44 | 0.57 | 1.39 | 1.37 | |
| ServiceNow Inc. | — | 0.66 | 0.71 | 0.67 | 0.83 | 0.61 | |
| Synopsys Inc. | — | 0.53 | 0.56 | 0.65 | 0.58 | 0.42 | |
| Cash Ratio, Sector | |||||||
| Software & Services | — | 0.75 | 0.81 | 1.10 | 1.33 | 1.23 | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.75 | 0.72 | 0.96 | 1.19 | 1.11 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 14,194 ÷ 26,631 = 0.53
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Salesforce Inc. cash ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |