Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

$24.99

Total Asset Turnover
since 2005

Microsoft Excel

Calculation

Salesforce Inc., total asset turnover, 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 total asset turnover ratio for the period examined demonstrates a fluctuating pattern over the years. Initially, the ratio exhibits an increasing trend, followed by a period of relative stability, and then a marked decline in later years.

Initial Growth (2005-2007)
From 2005 to 2007, the total asset turnover ratio increased from 0.63 to 0.75. This suggests improving efficiency in utilizing assets to generate revenue during this period. The company was becoming more effective at converting investments in assets into sales.
Stabilization (2008-2011)
Following the initial growth, the ratio stabilized between 0.48 and 0.73 for four consecutive years. This indicates a consistent, though not improving, level of asset utilization. The company maintained a relatively steady performance in generating revenue from its asset base.
Decline (2012-2026)
Beginning in 2012, a consistent downward trend is observed in the total asset turnover ratio. The ratio decreased from 0.55 in 2012 to 0.37 in 2026. This decline suggests a decreasing efficiency in asset utilization. The company required a larger asset base to generate the same level of revenue, potentially indicating overinvestment in assets or slower revenue growth relative to asset growth.
Recent Performance (2020-2026)
The most recent five years show the ratio fluctuating between 0.28 and 0.37. While there is some variation, the overall trend remains downward. The ratio in 2026 (0.37) is significantly lower than the levels observed in the earlier part of the analyzed period. This suggests a continued challenge in efficiently deploying assets to generate revenue.

Overall, the trend indicates a diminishing ability to generate sales from its asset base. Further investigation would be required to determine the underlying causes of this decline, such as changes in industry dynamics, strategic shifts in asset allocation, or inefficiencies in operational processes.


Comparison to Competitors

Salesforce Inc., total asset turnover, 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)