salesforce.com inc.

DuPont Analysis: Decomposition of ROE
Quarterly Data

An approach to decomposing salesforce.com inc.’s return on equity as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Way Decomposition of ROA
• Four-Way Decomposition of ROA
• Decomposition of Net Profit Margin

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Operating Profit Margin
since 2005

salesforce.com inc.’s profitability ratio calculated as operating income divided by revenue.

• Calculation
• Comparison to Competitors

Enterprise Value to EBITDA (EV/EBITDA)

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

Net Profit Margin
since 2005

salesforce.com inc.’s indicator of profitability, calculated as net income divided by revenue.

• Calculation
• Comparison to Competitors
• Comparison to Software & Computer Services Sector
• Comparison to Technology Industry