Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Salesforce Inc., solvency ratios

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Debt Ratios
Debt to equity 0.19 0.07 0.09 0.22 0.21 0.32
Debt to equity (including operating lease liability) 0.25 0.15 0.18 0.22 0.21 0.32
Debt to capital 0.16 0.06 0.08 0.18 0.18 0.24
Debt to capital (including operating lease liability) 0.20 0.13 0.16 0.18 0.18 0.24
Debt to assets 0.12 0.04 0.06 0.11 0.10 0.14
Debt to assets (including operating lease liability) 0.15 0.10 0.11 0.11 0.10 0.14
Financial leverage 1.64 1.60 1.63 1.97 2.24 2.34
Coverage Ratios
Interest coverage 7.96 21.33 6.39 7.38 3.32 1.29
Fixed charge coverage 2.18 2.92 1.68 2.89 1.54 1.08

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

Microsoft Excel
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 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

Microsoft Excel
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 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

Microsoft Excel
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 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

Microsoft Excel
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 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

Microsoft Excel
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 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

Microsoft Excel
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 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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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.