Salesforce Inc. (NYSE:CRM)

The analysis of the financial leverage and debt-related ratios over the observed periods reveals several noteworthy trends and fluctuations.

Debt to Equity Ratio

The Debt to Equity ratio remained relatively low and stable from April 2020 through April 2021, fluctuating between 0.06 and 0.08. However, starting July 2021, there was a marked increase to 0.24, followed by a gradual decline and stabilization around 0.14 to 0.16 in subsequent quarters through October 2025. This suggests an initial rise in leverage relative to equity, but a subsequent effort to reduce or maintain debt levels in proportion to equity.

Debt to Equity Ratio Including Operating Lease Liability

This metric follows a similar pattern to the basic Debt to Equity ratio but consistently registers higher values, reflecting the added impact of operating lease liabilities. The ratio peaked at 0.3 in July 2021 and then showed a steady decreasing trend to the range of approximately 0.18 to 0.19 by late 2025, indicating a gradual reduction in combined debt and lease liabilities relative to equity over time.

Debt to Capital Ratio

The Debt to Capital ratio was low and steady, around 0.06 to 0.07, through early 2021, before increasing to approximately 0.19 in July 2021, mirroring the rise seen in the Debt to Equity ratio. Following the peak, the ratio trended downward and stabilized around 0.12 to 0.14 in later periods, indicating moderation in the company’s debt load as a portion of total capital.

Debt to Capital Ratio Including Operating Lease Liability

Incorporating operating lease liabilities, this ratio consistently displays higher values than the standard Debt to Capital ratio, peaking at 0.23 in mid-2021. A gradual decline ensued, leading to stabilization around 0.15 to 0.16, suggesting that lease obligations contribute meaningfully to the overall capital structure but have been managed effectively in recent periods.

Debt to Assets Ratio

The Debt to Assets ratio maintained low levels, between 0.04 and 0.05 until early 2021. There was a significant jump to 0.15 in July 2021, followed by a decline and lateral movement in the 0.08 to 0.10 range. This points to increased leverage relative to total assets in mid-2021, subsequently controlled in following quarters.

Debt to Assets Ratio Including Operating Lease Liability

Including operating leases increased the ratio’s magnitude substantially, with a peak around 0.19 in mid-2021. The later ratio decreases gently, settling close to 0.12 in recent periods, indicating that operating leases impact the asset base leverage but have been better managed toward lower levels thereafter.

Financial Leverage

Financial leverage values fluctuated moderately but did not exhibit a consistent upward or downward long-term trend. The ratio generally hovered in the range of approximately 1.47 to 1.69, with small peaks aligning roughly with the periods of increased debt observed in mid-2021 and early 2023. The data suggests ongoing management of the company’s overall leverage with some episodic increases likely linked to specific financing or investment activities.

In summary, the data indicate a period of notable increase in debt and lease-related liabilities around mid-2021, after which the company appears to have implemented measures to reduce and stabilize its leverage ratios across multiple dimensions, including debt relative to equity, capital, and assets. Operating lease liabilities represent a relevant component in leverage metrics but show a managed decline post-peak. Overall, the company maintains conservative leverage levels with periodic adjustments reflective of strategic financial management.

The analysis of the quarterly financial metrics reveals specific trends in the company’s capital structure over the period under review. The total debt experienced significant fluctuations, marked by a notable increase in mid-2021, followed by a gradual decline toward the later periods. Stockholders’ equity demonstrated a generally upward trajectory, with some short-term variations but maintaining growth overall.

Total Debt

The total debt remained relatively stable around 2,676 to 2,677 million US dollars during the first five quarters, then surged substantially to reach approximately 13,270 million US dollars by July 31, 2021. Subsequently, the debt levels declined steadily over the following quarters, dropping to approximately 8,438 million US dollars by October 31, 2025. This sequence suggests a period of increased borrowing followed by sustained efforts to reduce debt.

Stockholders’ Equity

Stockholders’ equity consistently increased from 34,565 million US dollars in April 2020 to a peak of around 61,173 million US dollars by July 31, 2024. Despite some fluctuations, particularly between late 2022 and mid-2023, the overall trend remained upward, indicative of growing retained earnings and possibly new equity injections or asset revaluations contributing to stronger equity base.

Debt to Equity Ratio

The debt to equity ratio initially stayed low, between 0.06 and 0.08, reflecting a conservative leverage position through early 2021. A marked increase occurred in mid-2021, with the ratio rising sharply to approximately 0.24, concurrent with the spike in total debt. Thereafter, there was a gradual decrease in the ratio to about 0.14 by late 2025, reflecting the decline in debt relative to the still growing equity base. This indicates an improving leverage position over recent periods.

The financial data reveals several noteworthy trends regarding the company’s capital structure and leverage over the observed periods.

Total Debt (including operating lease liability)

The total debt exhibited a relatively stable pattern from April 2020 through April 2021, fluctuating modestly around the 5,800 to 6,300 million USD range. A sharp increase occurred in July 2021, surging to over 16,800 million USD, followed by a notable decline in subsequent quarters, stabilizing around 13,000 to 14,000 million USD through to early 2023. From mid-2023 onwards, a gradual downward trend is evident, with total debt decreasing steadily to approximately 11,100 million USD by October 2025.

Stockholders’ Equity

Stockholders’ equity showed consistent growth over the time span, increasing from about 34,500 million USD in April 2020 to a peak exceeding 58,000 million USD by early 2022. Minor fluctuations appeared thereafter, yet equity remained generally stable above 57,000 million USD until mid-2023. A mild upward trajectory resumed later, pushing equity close to 61,000 million USD in the final quarter of the period before a slight dip towards 60,000 million USD by October 2025.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio stayed low and stable in the initial quarters, ranging between 0.14 and 0.17 until April 2021. This ratio temporarily doubled to 0.3 in July 2021 concurrent with the spike in total debt. Subsequently, the ratio declined and remained in the 0.18 to 0.25 range, showing a slow but steady reduction from mid-2023 onwards, reaching approximately 0.19 by the end of the available data. This suggests an improvement in leverage position relative to equity capital over the longer term.

Overall, the company demonstrated a strong equity base with moderately low leverage throughout most of the period. The brief surge in debt during mid-2021 was followed by a consistent deleveraging trend, indicating a possible strategic reduction in debt or refinancing. The steady growth in equity supports the company’s financial stability and capacity to absorb debt, contributing to a conservative capital structure in the latter periods analyzed.

The financial data reveals notable movements in the company's debt and capital structure over the observed periods.

Total Debt

Initially, total debt remained relatively stable around 2,676 to 2,677 million US dollars from April 2020 through April 2021. Subsequently, a sharp increase occurred in July 2021, with total debt rising to 13,270 million US dollars. Afterwards, total debt gradually decreased, falling consistently from 10,611 million US dollars in October 2021 down to 8,438 million US dollars by October 2025, indicating active debt reduction efforts over this extended time frame.

Total Capital

Total capital grew steadily from 37,242 million US dollars in April 2020 to a peak of 70,697 million US dollars in July 2022. Following this, total capital experienced slight fluctuations, generally maintaining a level above 66,000 million US dollars, with some variability observed toward the later quarters, ending at 68,459 million US dollars in October 2025.

Debt to Capital Ratio

The ratio of debt to capital was low and steady at approximately 0.06 to 0.07 in the early quarters up to April 2021. This ratio increased markedly to 0.19 in July 2021, coinciding with the surge in total debt, before progressively declining throughout the subsequent periods. By October 2025, the debt to capital ratio had reduced to 0.12, reflecting a gradual deleveraging trend and a strengthening capital structure over time.

In summary, the financial trends denote a period of heightened leverage around mid-2021, followed by a strategic reduction in debt levels while maintaining relatively stable capital. This pattern suggests an initial phase of increased borrowing, possibly for expansion or investment, succeeded by sustained efforts to manage and optimize the capital structure by reducing debt and preserving capital base stability.

Total Debt (Including Operating Lease Liability)

Over the analyzed period, total debt exhibited significant fluctuations. Initially, the debt remained relatively stable around the 5800 million US$ mark until early 2021. A substantial increase occurred in mid-2021, with debt peaking at approximately 16861 million US$. Following this peak, a gradual and consistent decline is observed, trending downward to approximately 11139 million US$ by late 2025. This pattern suggests an initial period of increased borrowing or refinancing, followed by a deliberate reduction in debt levels over subsequent quarters.

Total Capital (Including Operating Lease Liability)

Total capital showed a general upward trajectory with notable variation across quarters. Beginning near 40406 million US$ in early 2020, it rose steadily to over 48700 million US$ by mid-2021. After this point, capital surged sharply, coinciding with the peak in debt, reaching a high of over 72381 million US$. Subsequently, total capital experienced mild fluctuations but mainly stabilized in the range between 69000 million US$ and 73000 million US$ through to late 2025. This reflects overall growth in the company's capital base, with some volatility aligning with changes in debt.

Debt to Capital Ratio (Including Operating Lease Liability)

The debt to capital ratio started low at approximately 0.14 in early 2020 and remained stable around 0.13 to 0.14 through early 2021. A marked increase occurred alongside the rise in total debt and capital, peaking at approximately 0.23 in mid-2021. Following this, the ratio steadily declined, returning to a lower range between 0.15 and 0.19, ultimately stabilizing near 0.16 towards late 2025. This pattern indicates a temporary increase in leverage during mid-2021, followed by a consistent deleveraging over subsequent periods.

Summary of Trends and Insights

The data reveals an overall strategy of capital expansion accompanied by a period of increased debt in mid-2021, which was subsequently managed down. The peak debt level and corresponding rise in total capital suggest possible financing for acquisitions, investments, or other strategic initiatives during that period. The subsequent decline in the debt to capital ratio indicates effective deleveraging efforts, improving the company's financial leverage profile over time. Total capital's relatively stable high level post-peak suggests the company maintained its asset base or invested in growth while reducing reliance on debt financing.

Total Debt

The total debt level remained relatively stable around 2,676 to 2,677 million US dollars from April 2020 through April 2021. A significant increase occurred in July 2021, with total debt rising sharply to 13,270 million US dollars, then progressively declining in subsequent quarters. By January 2024, total debt decreased to approximately 9,426 million US dollars, further dropping to 8,438 million US dollars by October 2025. Overall, there is a notable peak in mid-2021 followed by a gradual deleveraging trend through 2025.

Total Assets

Total assets showed a generally upward trajectory from 53,623 million US dollars in April 2020 to a peak of 102,928 million US dollars in January 2025. Despite some fluctuations, including slight declines observed in the periods around early to mid-2022 and mid-2023 to late 2025, the general trend indicated asset growth over the examined period.

Debt to Assets Ratio

The debt-to-assets ratio was consistently low, ranging from 0.04 to 0.05 until April 2021, indicating low leverage. Following the increase in total debt in mid-2021, this ratio rose sharply to a peak of 0.15 in July 2021. Afterwards, the ratio gradually decreased, stabilizing between 0.08 and 0.11 from mid-2022 onwards. The trend reflects an initial increase in leverage corresponding to the debt increase, followed by a reduction in leverage due to debt repayment or asset growth, maintaining relatively conservative leverage levels through the latter periods.

Total Debt (Including Operating Lease Liability)

Over the examined periods, total debt showed notable fluctuations. Initially, it remained relatively stable around the 5,800 million USD mark until early 2021. A significant surge occurred in mid-2021, with debt peaking at approximately 16,861 million USD. After this spike, a gradual but consistent decline followed, reaching approximately 11,139 million USD by mid-2025. This downward trend indicates active debt management or repayment after the mid-2021 peak.

Total Assets

Total assets exhibited an overall upward trend with intermittent periods of decline. Starting from roughly 53,623 million USD in early 2020, assets increased to a high point near 98,849 million USD in early 2023. Subsequently, assets presented some volatility but generally hovered between 91,000 and 103,000 million USD across the later periods, reaching about 97,144 million USD by the end of the observation period. This pattern suggests asset expansion with occasional revaluations or disposals affecting total asset figures.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio displayed considerable variation reflecting the changes in both debt and asset levels. Initially, the ratio was between 0.09 and 0.11, indicating low leverage. During mid-2021, it jumped sharply to 0.19, coinciding with the total debt increase. After this peak, the ratio steadily decreased, stabilizing around 0.12 by mid-2025. This trend implies improved leverage control and a strengthened balance sheet over time following the increased borrowing period.

The quarterly financial data reveals several notable trends in the company's asset base, equity position, and financial leverage over the observed period from April 2020 to October 2025.

Total Assets

Total assets generally exhibit a fluctuating yet upward trend throughout the timeframe. Starting from US$53,623 million in April 2020, total assets increase to a peak of approximately US$102,928 million in January 2025. This represents near doubling over the five-year horizon. Notable fluctuations occur with periodic declines, such as the dip from US$88,658 million in July 2021 to US$87,436 million in October 2021, and from US$93,022 million in April 2022 down to US$91,884 million in October 2022. Despite these variations, the overall asset base growth indicates expansion and accumulation of resources.

Stockholders’ Equity

Stockholders’ equity also shows an overall growth pattern, rising from US$34,565 million in April 2020 to a peak near US$61,173 million in April 2025. Equity growth tends to proceed steadily with minor declines observed, for example, a slight decrease from US$60,098 million in July 2022 to US$59,351 million in October 2022, and some periods of relative stagnation or modest reduction around 2023. Despite these interruptions, the equity level maintains a steady upward trajectory consistent with shareholder value increase and retained earnings accumulation.

Financial Leverage

Financial leverage ratios fluctuate within a relatively narrow range between approximately 1.47 and 1.69. The ratio dips to its lowest point of 1.47 in October 2020, reflecting a lower proportion of debt relative to equity at that time. Subsequently, leverage escalates to around 1.6 or higher, peaking at approximately 1.69 in January 2023. From then onward, it maintains elevated levels around 1.6, with minor periodic adjustments. The consistency of leverage above 1.5 suggests a strategic use of debt financing to support asset growth, balancing risk and return while avoiding excessive financial risk.

In summary, the company demonstrates growth in both total assets and shareholders’ equity over the period analyzed, indicating expansion and accumulation of net worth. The financial leverage remains moderate and stable, indicating prudent management of debt levels in support of asset growth. While some periods exhibit fluctuations, the general tendencies point toward steady financial strengthening accompanied by a balanced capital structure management strategy.