Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

$24.99

Current Ratio
since 2005

Microsoft Excel

Calculation

Salesforce Inc., current ratio, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-01-31), 10-K (reporting date: 2012-01-31), 10-K (reporting date: 2011-01-31), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-01-31), 10-K (reporting date: 2007-01-31), 10-K (reporting date: 2006-01-31), 10-K (reporting date: 2005-01-31).

1 US$ in millions


The current ratio exhibited considerable fluctuation between 2005 and 2026. Initially, the ratio demonstrated a decline from 1.36 in 2005 to a low of 1.11 in 2007, before recovering to 1.39 in 2009. A subsequent and more pronounced decrease occurred between 2009 and 2012, falling to a minimum of 0.72. Following this low point, the ratio generally trended upwards, reaching 1.23 in 2021. However, this upward momentum was interrupted by a decline in 2022 and 2023, before a significant drop to 0.76 in 2026.

Overall Trend
The period under review does not demonstrate a consistent trend. While there are periods of increase, the ratio experienced multiple declines, indicating potential shifts in short-term liquidity management. The latter years of the period show a concerning downward trend.
Early Period (2005-2009)
The initial years show a moderate decrease followed by a recovery. The increase to 1.39 in 2009 suggests improved short-term asset coverage of liabilities during that period. This could be attributed to strategic asset management or changes in liability structure.
Period of Decline (2009-2012)
The substantial decline from 2009 to 2012 is noteworthy. The ratio falling below 1.0 in 2012 indicates that current liabilities exceeded current assets, potentially signaling liquidity concerns. This period warrants further investigation into the underlying causes, such as increased short-term debt or decreased liquidity of current assets.
Recovery and Subsequent Volatility (2012-2026)
Following the 2012 low, the ratio experienced a recovery, peaking at 1.23 in 2021. However, the subsequent decline to 1.02 in 2023 and a sharp drop to 0.76 in 2026 suggests renewed liquidity challenges. This recent volatility could be linked to changes in working capital management, increased short-term financing needs, or a slowdown in the conversion of current assets into cash.

The fluctuations in the current ratio suggest that the company’s short-term financial position has been subject to considerable change over the analyzed timeframe. The recent decline in 2026 is particularly concerning and warrants close monitoring.


Comparison to Competitors

Salesforce Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-01-31), 10-K (reporting date: 2012-01-31), 10-K (reporting date: 2011-01-31), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-01-31), 10-K (reporting date: 2007-01-31), 10-K (reporting date: 2006-01-31), 10-K (reporting date: 2005-01-31).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)