Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Salesforce Inc., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Salesforce Inc. net fixed asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Salesforce Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 and from 2021 to 2022. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Salesforce Inc. total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Salesforce Inc. equity turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net Fixed Asset Turnover
Salesforce Inc., net fixed asset turnover 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) | |||||||
| Revenues | 26,492 | 21,252 | 17,098 | 13,282 | 10,480 | 8,392 | |
| Property and equipment, net | 2,815 | 2,459 | 2,375 | 2,051 | 1,947 | 1,788 | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 9.41 | 8.64 | 7.20 | 6.48 | 5.38 | 4.69 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Accenture PLC | — | 30.83 | 28.68 | 31.06 | 32.91 | 32.23 | |
| Adobe Inc. | — | 9.44 | 8.48 | 8.64 | 8.40 | 7.79 | |
| International Business Machines Corp. | — | 10.07 | 7.33 | 7.71 | 7.38 | 7.12 | |
| Intuit Inc. | — | 12.35 | 10.46 | 8.70 | 7.34 | 5.03 | |
| Mastercard Inc. | — | 15.28 | 13.26 | 15.11 | 16.23 | 15.07 | |
| Microsoft Corp. | 2.66 | 2.81 | 3.24 | 3.45 | 3.75 | 3.79 | |
| Oracle Corp. | 4.37 | 5.74 | 6.26 | 6.32 | 6.75 | 7.10 | |
| PayPal Holdings Inc. | — | 13.29 | 11.87 | 10.50 | 8.96 | 8.57 | |
| ServiceNow Inc. | — | 7.70 | 6.85 | 7.39 | 7.51 | 7.89 | |
| Visa Inc. | — | 8.88 | 7.98 | 8.53 | 8.34 | 8.15 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Software & Services | — | 5.11 | 5.49 | 5.89 | 6.18 | 6.22 | |
| Net Fixed Asset Turnover, Industry | |||||||
| Information Technology | — | 4.56 | 4.33 | 4.38 | 4.64 | 4.75 | |
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
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= 26,492 ÷ 2,815 = 9.41
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Salesforce Inc. net fixed asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Salesforce Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | |||||||
| Revenues | 26,492 | 21,252 | 17,098 | 13,282 | 10,480 | 8,392 | |
| Property and equipment, net | 2,815 | 2,459 | 2,375 | 2,051 | 1,947 | 1,788 | |
| Operating lease right-of-use assets, net | 2,880 | 3,204 | 3,040 | — | — | — | |
| Property and equipment, net (including operating lease, right-of-use asset) | 5,695 | 5,663 | 5,415 | 2,051 | 1,947 | 1,788 | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.65 | 3.75 | 3.16 | 6.48 | 5.38 | 4.69 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Accenture PLC | — | 10.48 | 9.37 | 31.06 | 32.91 | 32.23 | |
| Adobe Inc. | — | 7.46 | 6.42 | 8.64 | 8.40 | 7.79 | |
| International Business Machines Corp. | — | 6.43 | 5.00 | 5.14 | 7.38 | 7.12 | |
| Intuit Inc. | — | 8.30 | 8.00 | 8.70 | 7.34 | 5.03 | |
| Mastercard Inc. | — | 9.90 | 8.04 | 9.24 | 16.23 | 15.07 | |
| Microsoft Corp. | 2.26 | 2.37 | 2.70 | 2.87 | 3.05 | 3.79 | |
| Oracle Corp. | 3.21 | 4.20 | 4.74 | 6.32 | 6.75 | 7.10 | |
| PayPal Holdings Inc. | — | 9.88 | 8.53 | 8.18 | 8.96 | 8.57 | |
| ServiceNow Inc. | — | 4.34 | 4.06 | 3.98 | 7.51 | 7.89 | |
| Visa Inc. | — | 7.46 | 6.73 | 8.53 | 8.34 | 8.15 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Software & Services | — | 3.90 | 4.10 | 4.83 | 5.53 | 6.22 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Information Technology | — | 3.89 | 3.68 | 4.08 | 4.48 | 4.75 | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 26,492 ÷ 5,695 = 4.65
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Salesforce Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 and from 2021 to 2022. |
Total Asset Turnover
Salesforce Inc., total asset turnover 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) | |||||||
| Revenues | 26,492 | 21,252 | 17,098 | 13,282 | 10,480 | 8,392 | |
| Total assets | 95,209 | 66,301 | 55,126 | 30,737 | 21,010 | 17,585 | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 0.28 | 0.32 | 0.31 | 0.43 | 0.50 | 0.48 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Accenture PLC | — | 1.17 | 1.20 | 1.45 | 1.70 | 1.62 | |
| Adobe Inc. | — | 0.58 | 0.53 | 0.54 | 0.48 | 0.50 | |
| International Business Machines Corp. | — | 0.43 | 0.47 | 0.51 | 0.65 | 0.63 | |
| Intuit Inc. | — | 0.62 | 0.70 | 1.08 | 1.15 | 1.27 | |
| Mastercard Inc. | — | 0.50 | 0.46 | 0.58 | 0.60 | 0.59 | |
| Microsoft Corp. | 0.54 | 0.50 | 0.47 | 0.44 | 0.43 | 0.37 | |
| Oracle Corp. | 0.39 | 0.31 | 0.34 | 0.36 | 0.29 | 0.28 | |
| PayPal Holdings Inc. | — | 0.33 | 0.30 | 0.35 | 0.36 | 0.32 | |
| ServiceNow Inc. | — | 0.55 | 0.52 | 0.57 | 0.67 | 0.57 | |
| Visa Inc. | — | 0.29 | 0.27 | 0.32 | 0.30 | 0.27 | |
| Total Asset Turnover, Sector | |||||||
| Software & Services | — | 0.46 | 0.45 | 0.48 | 0.48 | 0.45 | |
| Total Asset Turnover, Industry | |||||||
| Information Technology | — | 0.59 | 0.54 | 0.56 | 0.57 | 0.49 | |
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
Total asset turnover = Revenues ÷ Total assets
= 26,492 ÷ 95,209 = 0.28
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Salesforce Inc. total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Equity Turnover
Salesforce Inc., equity turnover 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) | |||||||
| Revenues | 26,492 | 21,252 | 17,098 | 13,282 | 10,480 | 8,392 | |
| Stockholders’ equity | 58,131 | 41,493 | 33,885 | 15,605 | 9,388 | 7,500 | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 0.46 | 0.51 | 0.50 | 0.85 | 1.12 | 1.12 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Accenture PLC | — | 2.59 | 2.61 | 3.00 | 4.01 | 4.11 | |
| Adobe Inc. | — | 1.07 | 0.97 | 1.06 | 0.96 | 0.86 | |
| International Business Machines Corp. | — | 3.03 | 3.57 | 3.70 | 4.74 | 4.50 | |
| Intuit Inc. | — | 0.98 | 1.50 | 1.81 | 2.53 | 3.82 | |
| Mastercard Inc. | — | 2.58 | 2.39 | 2.86 | 2.77 | 2.29 | |
| Microsoft Corp. | 1.19 | 1.18 | 1.21 | 1.23 | 1.33 | 1.24 | |
| Oracle Corp. | — | 7.73 | 3.24 | 1.81 | 0.87 | 0.70 | |
| PayPal Holdings Inc. | — | 1.17 | 1.07 | 1.05 | 1.00 | 0.82 | |
| ServiceNow Inc. | — | 1.60 | 1.59 | 1.63 | 2.35 | 3.31 | |
| Visa Inc. | — | 0.64 | 0.60 | 0.66 | 0.61 | 0.56 | |
| Equity Turnover, Sector | |||||||
| Software & Services | — | 1.36 | 1.40 | 1.52 | 1.51 | 1.38 | |
| Equity Turnover, Industry | |||||||
| Information Technology | — | 1.61 | 1.57 | 1.58 | 1.56 | 1.25 | |
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
Equity turnover = Revenues ÷ Stockholders’ equity
= 26,492 ÷ 58,131 = 0.46
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Salesforce Inc. equity turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |