Salesforce Inc. (NYSE:CRM)

The financial data reveals several notable trends over the observed time periods. The market (fair) value of Salesforce exhibits an overall upward trajectory with fluctuations, increasing from US$154,463 million in early 2020 to a peak of US$300,871 million in early 2024 before declining slightly to US$285,636 million in early 2025. This suggests a significant growth in market valuation with some volatility in the final observed years.

Invested capital shows a consistent rising pattern, starting at US$47,247 million in early 2020 and steadily increasing to US$85,881 million by early 2025. The increase in invested capital indicates continuous investments or asset growth within the company throughout the years.

Market value added (MVA), which represents the difference between the market value and invested capital, also demonstrates considerable variation. It climbs from US$107,216 million in 2020 to a peak at US$216,440 million in 2024, before falling to US$199,755 million in 2025. This pattern mirrors the market value trend, reflecting the company's creation of value above the invested capital. Despite the decline in the last year, MVA remains substantially higher than the initial levels, signifying strong value generation over the period.

Market (fair) value of Salesforce

Increased from 154,463 million in 2020 to 300,871 million in 2024, then decreased to 285,636 million in 2025.

Invested capital

Consistently rose from 47,247 million in 2020 to 85,881 million in 2025, indicating steady investment growth.

Market value added (MVA)

Rose from 107,216 million in 2020 to a high of 216,440 million in 2024, then declined to 199,755 million in 2025, suggesting strong but somewhat volatile value creation.

The data reveals notable fluctuations in several key financial metrics over the six-year period under review.

Market Value Added (MVA)

The Market Value Added exhibits a generally volatile pattern. Beginning at approximately $107.2 billion in early 2020, it increased significantly to $144.0 billion by early 2021. However, the following years saw a decline, reaching a low point of about $106.4 billion in early 2023. This was followed by a substantial surge to $216.4 billion in early 2024, before a slight decrease to roughly $199.8 billion in early 2025. Overall, MVA reflects periods of growth interrupted by short-term declines and then a strong recovery phase.

Invested Capital

Invested capital demonstrates a steady upward trend over the same timeframe. Starting from $47.2 billion in early 2020, the invested capital grew consistently year-over-year, reaching close to $85.9 billion by early 2025. The most pronounced increase occurred between early 2021 and early 2022, where invested capital jumped from $53.2 billion to $81.9 billion, after which growth continued but at a more moderate pace. This steady increase suggests ongoing reinvestment and asset accumulation.

MVA Spread Ratio

The MVA spread ratio, which reflects the relationship between market value added and invested capital expressed as a percentage, shows considerable variability. It peaked early in the period at approximately 271% in 2021, then declined steadily to around 126% by early 2023. Following this trough, the ratio rebounded sharply, reaching approximately 256% in early 2024, before a slight drop to about 233% by early 2025. This pattern indicates fluctuations in the company's value creation efficiency relative to its capital base, with periods of both diminished and enhanced returns.

In summary, the company’s financial performance over the six years is characterized by steady growth in invested capital accompanied by volatile market value added and spread ratio metrics. The strong recovery in market value and spread ratio post-2023 suggests an improvement in market perception or operational efficiency following a period of relative decline.

Market Value Added (MVA)

The Market Value Added exhibited fluctuation over the examined periods. Starting at approximately $107.2 billion in early 2020, it increased significantly to around $144 billion by early 2021. Subsequently, a decline was observed in the next two years, falling to roughly $123.2 billion in 2022 and further down to approximately $106.4 billion in 2023. However, a strong recovery took place in 2024, with MVA reaching about $216.4 billion, before experiencing a moderate decrease to near $199.8 billion in early 2025.

Adjusted Revenues

Adjusted revenues showed a consistent upward trajectory across all periods under review. Beginning at approximately $19.2 billion in 2020, revenues increased steadily each year, reaching nearly $23.2 billion in 2021, $29.5 billion in 2022, $33.1 billion in 2023, $36.5 billion in 2024, and ultimately about $39.6 billion in 2025. This growth indicates sustained revenue expansion without any indications of contraction.

MVA Margin

The MVA margin, expressed as a percentage, demonstrated variability throughout the timeline. It increased from 558.53% in 2020 to a peak of 620.94% in 2021, then declined significantly over the following two years to 417.33% in 2022 and 321.51% in 2023. The margin recovered sharply to 593.25% in 2024 but decreased again to 503.99% in 2025. This pattern reflects a cyclical trend in the efficiency with which the company generated market value relative to its adjusted revenues.

Overall Trends and Insights

The data indicates a general pattern of revenue growth aligned with fluctuating market valuation performance. While revenues increased steadily without interruption, MVA and MVA margin showed more volatility, suggesting that external market factors or changes in investor perception influenced the company's market value relative to its revenue base. The significant rebound in MVA in 2024, paired with an elevated MVA margin, suggests an improvement in market confidence or strategic performance during that year, though this momentum partially moderated the following year.