Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

Calculation

Salesforce Inc., ROA, 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 Return on Assets (ROA) for the period examined demonstrates significant fluctuations. Initially, the ROA exhibited positive growth, followed by periods of decline and subsequent recovery, culminating in a generally increasing trend in recent years.

Early Performance (2005-2009)
From 2005 to 2009, the ROA experienced considerable volatility. It began at 2.62% in 2005, peaked at 6.55% in 2006, then declined sharply to 0.07% in 2007. A modest recovery occurred in 2008 (1.68%), followed by a further increase to 2.93% in 2009. This period suggests early growth challenges and potential instability in asset utilization.
Period of Negative ROA (2011-2016)
The years 2011 through 2016 were characterized by inconsistent performance, including negative ROA values. The ROA fell to -0.28% in 2012, reaching its lowest point at -4.89% in 2013. While there was a slight improvement in 2015 and 2016, the ROA remained below 1.02% for the majority of this timeframe, indicating inefficient asset management or substantial losses relative to asset base.
Recovery and Growth (2017-2026)
Beginning in 2017, a clear upward trend in ROA is observed. The ROA increased to 1.02% in 2017, 0.61% in 2018, and then experienced substantial growth, reaching 3.61% in 2019. This positive momentum continued, with the ROA peaking at 6.64% in 2026. This period suggests improved profitability and more effective utilization of assets. The ROA in 2021 (6.14%) and 2023 (4.14%) were particularly strong, indicating a sustained ability to generate earnings from its asset base.
Correlation with Net Income and Total Assets
The fluctuations in ROA closely mirror the changes in net income. Periods of net loss (2012-2015) directly correlate with negative or low ROA values. The significant increase in net income from 2019 onwards is directly reflected in the corresponding rise in ROA. The substantial growth in total assets, particularly from 2019 onwards, did not hinder ROA performance, suggesting that asset expansion was accompanied by proportional increases in profitability.

Overall, the ROA demonstrates a transition from early instability and periods of negative returns to a more consistent and positive performance in recent years. The company appears to have improved its ability to generate profits from its assets, particularly after 2016.


Comparison to Competitors

Salesforce Inc., ROA, 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)