Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Salesforce Inc., solvency ratios
Based on: 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Salesforce Inc. debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Salesforce Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Salesforce Inc. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Salesforce Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Salesforce Inc. debt to assets ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Salesforce Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Salesforce Inc. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Salesforce Inc. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Salesforce Inc. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Equity
Salesforce Inc., debt to equity calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Finance lease liabilities, current | 114 | 35 | 53 | — | — | — | |
| Current portion of debt | 4 | 4 | 4 | 3 | 1,025 | — | |
| Noncurrent debt, excluding current portion | 10,592 | 2,673 | 2,673 | 3,173 | 695 | 2,008 | |
| Noncurrent finance lease liabilities | 271 | 93 | 332 | — | — | — | |
| Capital lease obligations | — | — | — | 191 | 295 | 397 | |
| Total debt | 10,981 | 2,805 | 3,062 | 3,367 | 2,015 | 2,406 | |
| Stockholders’ equity | 58,131 | 41,493 | 33,885 | 15,605 | 9,388 | 7,500 | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.19 | 0.07 | 0.09 | 0.22 | 0.21 | 0.32 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Accenture PLC | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | — | 0.28 | 0.31 | 0.39 | 0.44 | 0.22 | |
| International Business Machines Corp. | — | 2.74 | 2.99 | 3.02 | 2.73 | 2.66 | |
| Intuit Inc. | — | 0.21 | 0.66 | 0.12 | 0.19 | 0.36 | |
| Mastercard Inc. | — | 1.90 | 1.98 | 1.45 | 1.17 | 0.99 | |
| Microsoft Corp. | 0.39 | 0.50 | 0.62 | 0.77 | 0.97 | 1.23 | |
| Oracle Corp. | — | 16.08 | 5.93 | 2.58 | 1.33 | 1.08 | |
| PayPal Holdings Inc. | — | 0.42 | 0.45 | 0.29 | 0.13 | 0.06 | |
| ServiceNow Inc. | — | 0.43 | 0.58 | 0.33 | 0.60 | 2.01 | |
| Visa Inc. | — | 0.56 | 0.66 | 0.48 | 0.49 | 0.56 | |
| Debt to Equity, Sector | |||||||
| Software & Services | — | 0.81 | 0.92 | 0.95 | 0.94 | 1.00 | |
| Debt to Equity, Industry | |||||||
| Information Technology | — | 0.77 | 0.87 | 0.85 | 0.80 | 0.78 | |
Based on: 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).
1 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 10,981 ÷ 58,131 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Salesforce Inc. debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Salesforce Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Finance lease liabilities, current | 114 | 35 | 53 | — | — | — | |
| Current portion of debt | 4 | 4 | 4 | 3 | 1,025 | — | |
| Noncurrent debt, excluding current portion | 10,592 | 2,673 | 2,673 | 3,173 | 695 | 2,008 | |
| Noncurrent finance lease liabilities | 271 | 93 | 332 | — | — | — | |
| Capital lease obligations | — | — | — | 191 | 295 | 397 | |
| Total debt | 10,981 | 2,805 | 3,062 | 3,367 | 2,015 | 2,406 | |
| Operating lease liabilities, current | 686 | 766 | 750 | — | — | — | |
| Noncurrent operating lease liabilities | 2,703 | 2,842 | 2,445 | — | — | — | |
| Total debt (including operating lease liability) | 14,370 | 6,413 | 6,257 | 3,367 | 2,015 | 2,406 | |
| Stockholders’ equity | 58,131 | 41,493 | 33,885 | 15,605 | 9,388 | 7,500 | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.25 | 0.15 | 0.18 | 0.22 | 0.21 | 0.32 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | — | 0.18 | 0.21 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | — | 0.32 | 0.35 | 0.39 | 0.44 | 0.22 | |
| International Business Machines Corp. | — | 2.92 | 3.23 | 3.27 | 2.73 | 2.66 | |
| Intuit Inc. | — | 0.25 | 0.71 | 0.12 | 0.19 | 0.36 | |
| Mastercard Inc. | — | 2.01 | 2.12 | 1.58 | 1.17 | 0.99 | |
| Microsoft Corp. | 0.47 | 0.58 | 0.69 | 0.84 | 1.06 | 1.23 | |
| Oracle Corp. | — | 16.61 | 6.10 | 2.58 | 1.33 | 1.08 | |
| PayPal Holdings Inc. | — | 0.45 | 0.49 | 0.32 | 0.13 | 0.06 | |
| ServiceNow Inc. | — | 0.60 | 0.75 | 0.53 | 0.60 | 2.01 | |
| Visa Inc. | — | 0.57 | 0.68 | 0.48 | 0.49 | 0.56 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | — | 0.90 | 1.02 | 1.01 | 0.97 | 1.00 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.84 | 0.94 | 0.88 | 0.81 | 0.78 | |
Based on: 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).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 14,370 ÷ 58,131 = 0.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Salesforce Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Capital
Salesforce Inc., debt to capital calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Finance lease liabilities, current | 114 | 35 | 53 | — | — | — | |
| Current portion of debt | 4 | 4 | 4 | 3 | 1,025 | — | |
| Noncurrent debt, excluding current portion | 10,592 | 2,673 | 2,673 | 3,173 | 695 | 2,008 | |
| Noncurrent finance lease liabilities | 271 | 93 | 332 | — | — | — | |
| Capital lease obligations | — | — | — | 191 | 295 | 397 | |
| Total debt | 10,981 | 2,805 | 3,062 | 3,367 | 2,015 | 2,406 | |
| Stockholders’ equity | 58,131 | 41,493 | 33,885 | 15,605 | 9,388 | 7,500 | |
| Total capital | 69,112 | 44,298 | 36,947 | 18,972 | 11,403 | 9,906 | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.16 | 0.06 | 0.08 | 0.18 | 0.18 | 0.24 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Accenture PLC | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | — | 0.22 | 0.24 | 0.28 | 0.31 | 0.18 | |
| International Business Machines Corp. | — | 0.73 | 0.75 | 0.75 | 0.73 | 0.73 | |
| Intuit Inc. | — | 0.17 | 0.40 | 0.10 | 0.16 | 0.26 | |
| Mastercard Inc. | — | 0.66 | 0.66 | 0.59 | 0.54 | 0.50 | |
| Microsoft Corp. | 0.28 | 0.33 | 0.38 | 0.43 | 0.49 | 0.55 | |
| Oracle Corp. | 1.09 | 0.94 | 0.86 | 0.72 | 0.57 | 0.52 | |
| PayPal Holdings Inc. | — | 0.29 | 0.31 | 0.23 | 0.11 | 0.06 | |
| ServiceNow Inc. | — | 0.30 | 0.37 | 0.25 | 0.37 | 0.67 | |
| Visa Inc. | — | 0.36 | 0.40 | 0.33 | 0.33 | 0.36 | |
| Debt to Capital, Sector | |||||||
| Software & Services | — | 0.45 | 0.48 | 0.49 | 0.49 | 0.50 | |
| Debt to Capital, Industry | |||||||
| Information Technology | — | 0.44 | 0.47 | 0.46 | 0.44 | 0.44 | |
Based on: 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).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,981 ÷ 69,112 = 0.16
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Salesforce Inc. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Salesforce Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Finance lease liabilities, current | 114 | 35 | 53 | — | — | — | |
| Current portion of debt | 4 | 4 | 4 | 3 | 1,025 | — | |
| Noncurrent debt, excluding current portion | 10,592 | 2,673 | 2,673 | 3,173 | 695 | 2,008 | |
| Noncurrent finance lease liabilities | 271 | 93 | 332 | — | — | — | |
| Capital lease obligations | — | — | — | 191 | 295 | 397 | |
| Total debt | 10,981 | 2,805 | 3,062 | 3,367 | 2,015 | 2,406 | |
| Operating lease liabilities, current | 686 | 766 | 750 | — | — | — | |
| Noncurrent operating lease liabilities | 2,703 | 2,842 | 2,445 | — | — | — | |
| Total debt (including operating lease liability) | 14,370 | 6,413 | 6,257 | 3,367 | 2,015 | 2,406 | |
| Stockholders’ equity | 58,131 | 41,493 | 33,885 | 15,605 | 9,388 | 7,500 | |
| Total capital (including operating lease liability) | 72,501 | 47,906 | 40,142 | 18,972 | 11,403 | 9,906 | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.20 | 0.13 | 0.16 | 0.18 | 0.18 | 0.24 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | — | 0.15 | 0.17 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | — | 0.24 | 0.26 | 0.28 | 0.31 | 0.18 | |
| International Business Machines Corp. | — | 0.74 | 0.76 | 0.77 | 0.73 | 0.73 | |
| Intuit Inc. | — | 0.20 | 0.42 | 0.10 | 0.16 | 0.26 | |
| Mastercard Inc. | — | 0.67 | 0.68 | 0.61 | 0.54 | 0.50 | |
| Microsoft Corp. | 0.32 | 0.37 | 0.41 | 0.46 | 0.51 | 0.55 | |
| Oracle Corp. | 1.08 | 0.94 | 0.86 | 0.72 | 0.57 | 0.52 | |
| PayPal Holdings Inc. | — | 0.31 | 0.33 | 0.24 | 0.11 | 0.06 | |
| ServiceNow Inc. | — | 0.37 | 0.43 | 0.35 | 0.37 | 0.67 | |
| Visa Inc. | — | 0.36 | 0.40 | 0.33 | 0.33 | 0.36 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | — | 0.47 | 0.50 | 0.50 | 0.49 | 0.50 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.46 | 0.48 | 0.47 | 0.45 | 0.44 | |
Based on: 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).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 14,370 ÷ 72,501 = 0.20
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Salesforce Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Assets
Salesforce Inc., debt to assets calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Finance lease liabilities, current | 114 | 35 | 53 | — | — | — | |
| Current portion of debt | 4 | 4 | 4 | 3 | 1,025 | — | |
| Noncurrent debt, excluding current portion | 10,592 | 2,673 | 2,673 | 3,173 | 695 | 2,008 | |
| Noncurrent finance lease liabilities | 271 | 93 | 332 | — | — | — | |
| Capital lease obligations | — | — | — | 191 | 295 | 397 | |
| Total debt | 10,981 | 2,805 | 3,062 | 3,367 | 2,015 | 2,406 | |
| Total assets | 95,209 | 66,301 | 55,126 | 30,737 | 21,010 | 17,585 | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.12 | 0.04 | 0.06 | 0.11 | 0.10 | 0.14 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Accenture PLC | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | — | 0.15 | 0.17 | 0.20 | 0.22 | 0.13 | |
| International Business Machines Corp. | — | 0.39 | 0.39 | 0.41 | 0.37 | 0.37 | |
| Intuit Inc. | — | 0.13 | 0.31 | 0.07 | 0.08 | 0.12 | |
| Mastercard Inc. | — | 0.37 | 0.38 | 0.29 | 0.25 | 0.25 | |
| Microsoft Corp. | 0.18 | 0.21 | 0.24 | 0.27 | 0.31 | 0.37 | |
| Oracle Corp. | 0.69 | 0.64 | 0.62 | 0.52 | 0.44 | 0.43 | |
| PayPal Holdings Inc. | — | 0.12 | 0.13 | 0.10 | 0.05 | 0.02 | |
| ServiceNow Inc. | — | 0.15 | 0.19 | 0.12 | 0.17 | 0.35 | |
| Visa Inc. | — | 0.25 | 0.30 | 0.23 | 0.24 | 0.27 | |
| Debt to Assets, Sector | |||||||
| Software & Services | — | 0.27 | 0.30 | 0.30 | 0.30 | 0.32 | |
| Debt to Assets, Industry | |||||||
| Information Technology | — | 0.28 | 0.30 | 0.30 | 0.29 | 0.30 | |
Based on: 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).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 10,981 ÷ 95,209 = 0.12
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Salesforce Inc. debt to assets ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Salesforce Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Finance lease liabilities, current | 114 | 35 | 53 | — | — | — | |
| Current portion of debt | 4 | 4 | 4 | 3 | 1,025 | — | |
| Noncurrent debt, excluding current portion | 10,592 | 2,673 | 2,673 | 3,173 | 695 | 2,008 | |
| Noncurrent finance lease liabilities | 271 | 93 | 332 | — | — | — | |
| Capital lease obligations | — | — | — | 191 | 295 | 397 | |
| Total debt | 10,981 | 2,805 | 3,062 | 3,367 | 2,015 | 2,406 | |
| Operating lease liabilities, current | 686 | 766 | 750 | — | — | — | |
| Noncurrent operating lease liabilities | 2,703 | 2,842 | 2,445 | — | — | — | |
| Total debt (including operating lease liability) | 14,370 | 6,413 | 6,257 | 3,367 | 2,015 | 2,406 | |
| Total assets | 95,209 | 66,301 | 55,126 | 30,737 | 21,010 | 17,585 | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.15 | 0.10 | 0.11 | 0.11 | 0.10 | 0.14 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | — | 0.08 | 0.09 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | — | 0.17 | 0.19 | 0.20 | 0.22 | 0.13 | |
| International Business Machines Corp. | — | 0.42 | 0.43 | 0.45 | 0.37 | 0.37 | |
| Intuit Inc. | — | 0.16 | 0.33 | 0.07 | 0.08 | 0.12 | |
| Mastercard Inc. | — | 0.39 | 0.40 | 0.32 | 0.25 | 0.25 | |
| Microsoft Corp. | 0.21 | 0.25 | 0.27 | 0.30 | 0.34 | 0.37 | |
| Oracle Corp. | 0.73 | 0.66 | 0.64 | 0.52 | 0.44 | 0.43 | |
| PayPal Holdings Inc. | — | 0.13 | 0.14 | 0.11 | 0.05 | 0.02 | |
| ServiceNow Inc. | — | 0.21 | 0.24 | 0.19 | 0.17 | 0.35 | |
| Visa Inc. | — | 0.26 | 0.30 | 0.23 | 0.24 | 0.27 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | — | 0.30 | 0.32 | 0.32 | 0.31 | 0.32 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.30 | 0.32 | 0.31 | 0.29 | 0.30 | |
Based on: 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).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 14,370 ÷ 95,209 = 0.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Salesforce Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Financial Leverage
Salesforce Inc., financial leverage calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 95,209 | 66,301 | 55,126 | 30,737 | 21,010 | 17,585 | |
| Stockholders’ equity | 58,131 | 41,493 | 33,885 | 15,605 | 9,388 | 7,500 | |
| Solvency Ratio | |||||||
| Financial leverage1 | 1.64 | 1.60 | 1.63 | 1.97 | 2.24 | 2.34 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Accenture PLC | — | 2.21 | 2.18 | 2.07 | 2.36 | 2.54 | |
| Adobe Inc. | — | 1.84 | 1.83 | 1.97 | 2.00 | 1.72 | |
| International Business Machines Corp. | — | 6.98 | 7.57 | 7.30 | 7.35 | 7.12 | |
| Intuit Inc. | — | 1.57 | 2.14 | 1.68 | 2.20 | 3.00 | |
| Mastercard Inc. | — | 5.15 | 5.25 | 4.96 | 4.61 | 3.90 | |
| Microsoft Corp. | 2.19 | 2.35 | 2.55 | 2.80 | 3.13 | 3.33 | |
| Oracle Corp. | — | 25.03 | 9.56 | 4.99 | 3.00 | 2.51 | |
| PayPal Holdings Inc. | — | 3.49 | 3.52 | 3.04 | 2.82 | 2.55 | |
| ServiceNow Inc. | — | 2.92 | 3.07 | 2.83 | 3.49 | 5.82 | |
| Visa Inc. | — | 2.21 | 2.23 | 2.09 | 2.04 | 2.08 | |
| Financial Leverage, Sector | |||||||
| Software & Services | — | 2.97 | 3.13 | 3.19 | 3.14 | 3.08 | |
| Financial Leverage, Industry | |||||||
| Information Technology | — | 2.75 | 2.91 | 2.84 | 2.74 | 2.56 | |
Based on: 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).
1 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 95,209 ÷ 58,131 = 1.64
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Salesforce Inc. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
Interest Coverage
Salesforce Inc., interest coverage calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 1,444 | 4,072 | 126 | 1,110 | 127 | 180 | |
| Add: Income tax expense | 88 | (1,511) | 580 | (127) | 75 | (154) | |
| Add: Interest expense | 220 | 126 | 131 | 154 | 87 | 89 | |
| Earnings before interest and tax (EBIT) | 1,752 | 2,687 | 837 | 1,137 | 289 | 114 | |
| Solvency Ratio | |||||||
| Interest coverage1 | 7.96 | 21.33 | 6.39 | 7.38 | 3.32 | 1.29 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Accenture PLC | — | 131.46 | 205.84 | 273.26 | 298.26 | 297.95 | |
| Adobe Inc. | — | 51.49 | 37.00 | 21.38 | 32.31 | 29.73 | |
| International Business Machines Corp. | — | 5.20 | 4.62 | 8.58 | 16.71 | 19.56 | |
| Intuit Inc. | — | 89.14 | 158.00 | 126.40 | 76.15 | 45.10 | |
| Mastercard Inc. | — | 24.91 | 21.42 | 44.44 | 39.73 | 43.35 | |
| Microsoft Corp. | 41.58 | 31.31 | 21.47 | 17.27 | 14.35 | 11.42 | |
| Oracle Corp. | 3.84 | 6.28 | 7.13 | 6.97 | 7.43 | 7.47 | |
| PayPal Holdings Inc. | — | 18.67 | 25.23 | 27.07 | 31.86 | 315.29 | |
| ServiceNow Inc. | — | 9.89 | 5.56 | 3.02 | 0.26 | -1.79 | |
| Visa Inc. | — | 32.31 | 27.72 | 28.92 | 21.92 | 21.77 | |
| Interest Coverage, Sector | |||||||
| Software & Services | — | 19.39 | 16.13 | 15.43 | 15.12 | 14.27 | |
| Interest Coverage, Industry | |||||||
| Information Technology | — | 22.99 | 16.99 | 16.40 | 18.11 | 17.12 | |
Based on: 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).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,752 ÷ 220 = 7.96
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Salesforce Inc. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Fixed Charge Coverage
Salesforce Inc., fixed charge coverage calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 1,444 | 4,072 | 126 | 1,110 | 127 | 180 | |
| Add: Income tax expense | 88 | (1,511) | 580 | (127) | 75 | (154) | |
| Add: Interest expense | 220 | 126 | 131 | 154 | 87 | 89 | |
| Earnings before interest and tax (EBIT) | 1,752 | 2,687 | 837 | 1,137 | 289 | 114 | |
| Add: Operating lease cost | 1,080 | 1,208 | 913 | 365 | 285 | 226 | |
| Earnings before fixed charges and tax | 2,832 | 3,895 | 1,750 | 1,502 | 574 | 340 | |
| Interest expense | 220 | 126 | 131 | 154 | 87 | 89 | |
| Operating lease cost | 1,080 | 1,208 | 913 | 365 | 285 | 226 | |
| Fixed charges | 1,300 | 1,334 | 1,044 | 519 | 372 | 315 | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 2.18 | 2.92 | 1.68 | 2.89 | 1.54 | 1.08 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Accenture PLC | — | 10.41 | 9.66 | 10.07 | 9.63 | 8.30 | |
| Adobe Inc. | — | 25.59 | 18.77 | 10.78 | 13.34 | 12.26 | |
| International Business Machines Corp. | — | 3.13 | 2.62 | 4.41 | 5.26 | 5.69 | |
| Intuit Inc. | — | 25.58 | 27.48 | 34.00 | 26.91 | 22.03 | |
| Mastercard Inc. | — | 19.64 | 16.43 | 31.13 | 25.01 | 26.78 | |
| Microsoft Corp. | 19.50 | 16.90 | 12.44 | 10.94 | 9.45 | 7.57 | |
| Oracle Corp. | 3.22 | 5.17 | 5.68 | 5.50 | 6.38 | 6.39 | |
| PayPal Holdings Inc. | — | 11.20 | 14.51 | 12.94 | 14.89 | 29.95 | |
| ServiceNow Inc. | — | 2.95 | 2.29 | 1.69 | 0.61 | -0.55 | |
| Visa Inc. | — | 26.74 | 22.89 | 19.17 | 16.32 | 17.20 | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | — | 10.81 | 8.96 | 9.04 | 8.70 | 8.13 | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | — | 13.86 | 10.59 | 10.91 | 11.84 | 11.04 | |
Based on: 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).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,832 ÷ 1,300 = 2.18
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Salesforce Inc. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |