Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Two-Component Disaggregation of ROE

Salesforce Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Jan 31, 2024 6.93% = 4.14% × 1.67
Oct 31, 2023 4.46% = 2.85% × 1.57
Jul 31, 2023 2.72% = 1.71% × 1.59
Apr 30, 2023 0.66% = 0.41% × 1.63
Jan 31, 2023 0.36% = 0.21% × 1.69
Oct 31, 2022 0.47% = 0.30% × 1.55
Jul 31, 2022 0.89% = 0.57% × 1.57
Apr 30, 2022 1.70% = 1.08% × 1.58
Jan 31, 2022 2.48% = 1.52% × 1.64
Oct 31, 2021 3.05% = 1.99% × 1.53
Jul 31, 2021 4.24% = 2.65% × 1.60
Apr 30, 2021 10.44% = 6.85% × 1.52
Jan 31, 2021 9.81% = 6.14% × 1.60
Oct 31, 2020 8.82% = 6.01% × 1.47
Jul 31, 2020 6.16% = 4.10% × 1.50
Apr 30, 2020 -0.48% = -0.31% × 1.55
Jan 31, 2020 0.37% = 0.23% × 1.63
Oct 31, 2019 2.21% = 1.47% × 1.50
Jul 31, 2019 5.53% = 2.85% × 1.94
Apr 30, 2019 7.04% = 3.49% × 2.02
Jan 31, 2019 7.11% = 3.61% × 1.97
Oct 31, 2018 = × 1.81
Jul 31, 2018 = × 1.91
Apr 30, 2018 = × 2.08

Based on: 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-K (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in profitability measured by return on assets ratio (ROA).


Three-Component Disaggregation of ROE

Salesforce Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jan 31, 2024 6.93% = 11.87% × 0.35 × 1.67
Oct 31, 2023 4.46% = 7.63% × 0.37 × 1.57
Jul 31, 2023 2.72% = 4.77% × 0.36 × 1.59
Apr 30, 2023 0.66% = 1.18% × 0.34 × 1.63
Jan 31, 2023 0.36% = 0.66% × 0.32 × 1.69
Oct 31, 2022 0.47% = 0.92% × 0.33 × 1.55
Jul 31, 2022 0.89% = 1.83% × 0.31 × 1.57
Apr 30, 2022 1.70% = 3.59% × 0.30 × 1.58
Jan 31, 2022 2.48% = 5.45% × 0.28 × 1.64
Oct 31, 2021 3.05% = 6.96% × 0.29 × 1.53
Jul 31, 2021 4.24% = 9.99% × 0.27 × 1.60
Apr 30, 2021 10.44% = 19.87% × 0.34 × 1.52
Jan 31, 2021 9.81% = 19.16% × 0.32 × 1.60
Oct 31, 2020 8.82% = 17.53% × 0.34 × 1.47
Jul 31, 2020 6.16% = 12.21% × 0.34 × 1.50
Apr 30, 2020 -0.48% = -0.92% × 0.34 × 1.55
Jan 31, 2020 0.37% = 0.74% × 0.31 × 1.63
Oct 31, 2019 2.21% = 4.64% × 0.32 × 1.50
Jul 31, 2019 5.53% = 6.45% × 0.44 × 1.94
Apr 30, 2019 7.04% = 8.26% × 0.42 × 2.02
Jan 31, 2019 7.11% = 8.36% × 0.43 × 1.97
Oct 31, 2018 = × × 1.81
Jul 31, 2018 = × × 1.91
Apr 30, 2018 = × × 2.08

Based on: 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-K (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in profitability measured by net profit margin ratio.


Two-Component Disaggregation of ROA

Salesforce Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jan 31, 2024 4.14% = 11.87% × 0.35
Oct 31, 2023 2.85% = 7.63% × 0.37
Jul 31, 2023 1.71% = 4.77% × 0.36
Apr 30, 2023 0.41% = 1.18% × 0.34
Jan 31, 2023 0.21% = 0.66% × 0.32
Oct 31, 2022 0.30% = 0.92% × 0.33
Jul 31, 2022 0.57% = 1.83% × 0.31
Apr 30, 2022 1.08% = 3.59% × 0.30
Jan 31, 2022 1.52% = 5.45% × 0.28
Oct 31, 2021 1.99% = 6.96% × 0.29
Jul 31, 2021 2.65% = 9.99% × 0.27
Apr 30, 2021 6.85% = 19.87% × 0.34
Jan 31, 2021 6.14% = 19.16% × 0.32
Oct 31, 2020 6.01% = 17.53% × 0.34
Jul 31, 2020 4.10% = 12.21% × 0.34
Apr 30, 2020 -0.31% = -0.92% × 0.34
Jan 31, 2020 0.23% = 0.74% × 0.31
Oct 31, 2019 1.47% = 4.64% × 0.32
Jul 31, 2019 2.85% = 6.45% × 0.44
Apr 30, 2019 3.49% = 8.26% × 0.42
Jan 31, 2019 3.61% = 8.36% × 0.43
Oct 31, 2018 = ×
Jul 31, 2018 = ×
Apr 30, 2018 = ×

Based on: 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-K (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2024 is the increase in profitability measured by net profit margin ratio.