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: 2023-01-31), 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).
| 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 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Salesforce Inc. total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Salesforce Inc. equity turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Net Fixed Asset Turnover
Salesforce Inc., net fixed asset turnover calculation, comparison to benchmarks
| Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 31,352) | 26,492) | 21,252) | 17,098) | 13,282) | 10,480) | |
| Property and equipment, net | 3,702) | 2,815) | 2,459) | 2,375) | 2,051) | 1,947) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 8.47 | 9.41 | 8.64 | 7.20 | 6.48 | 5.38 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Accenture PLC | — | 37.12 | 30.83 | 28.68 | 31.06 | 32.91 | |
| Adobe Inc. | — | 9.23 | 9.44 | 8.48 | 8.64 | 8.40 | |
| International Business Machines Corp. | — | 11.35 | 10.07 | 7.33 | 7.71 | 7.38 | |
| Intuit Inc. | 14.83 | 14.33 | 12.35 | 10.46 | 8.70 | 7.34 | |
| Microsoft Corp. | 2.22 | 2.66 | 2.81 | 3.24 | 3.45 | 3.75 | |
| Oracle Corp. | 2.93 | 4.37 | 5.74 | 6.26 | 6.32 | 6.75 | |
| Palo Alto Networks Inc. | 19.44 | 15.38 | 13.37 | 9.79 | 9.80 | 8.32 | |
| ServiceNow Inc. | — | 6.88 | 7.70 | 6.85 | 7.39 | 7.51 | |
| Synopsys Inc. | — | 10.51 | 8.90 | 7.62 | 7.82 | 10.09 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Software & Services | — | 4.44 | 4.69 | 5.13 | 5.50 | 5.84 | |
| Net Fixed Asset Turnover, Industry | |||||||
| Information Technology | — | 4.14 | 4.45 | 4.23 | 4.28 | 4.56 | |
Based on: 10-K (reporting date: 2023-01-31), 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).
1 2023 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= 31,352 ÷ 3,702 = 8.47
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 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
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, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 31,352) | 26,492) | 21,252) | 17,098) | 13,282) | 10,480) | |
| Property and equipment, net | 3,702) | 2,815) | 2,459) | 2,375) | 2,051) | 1,947) | |
| Operating lease right-of-use assets, net | 2,890) | 2,880) | 3,204) | 3,040) | —) | —) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 6,592) | 5,695) | 5,663) | 5,415) | 2,051) | 1,947) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.76 | 4.65 | 3.75 | 3.16 | 6.48 | 5.38 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Accenture PLC | — | 13.17 | 10.48 | 9.37 | 31.06 | 32.91 | |
| Adobe Inc. | — | 7.61 | 7.46 | 6.42 | 8.64 | 8.40 | |
| International Business Machines Corp. | — | 7.37 | 6.43 | 5.00 | 5.14 | 7.38 | |
| Intuit Inc. | 9.99 | 8.86 | 8.30 | 8.00 | 8.70 | 7.34 | |
| Microsoft Corp. | 1.93 | 2.26 | 2.37 | 2.70 | 2.87 | 3.05 | |
| Oracle Corp. | 2.31 | 3.21 | 4.20 | 4.74 | 6.32 | 6.75 | |
| Palo Alto Networks Inc. | 11.16 | 9.17 | 7.32 | 5.62 | 9.80 | 8.32 | |
| ServiceNow Inc. | — | 4.18 | 4.34 | 4.06 | 3.98 | 7.51 | |
| Synopsys Inc. | — | 4.87 | 4.35 | 3.88 | 7.82 | 10.09 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Software & Services | — | 3.46 | 3.56 | 3.81 | 4.52 | 5.18 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Information Technology | — | 3.59 | 3.80 | 3.60 | 4.00 | 4.40 | |
Based on: 10-K (reporting date: 2023-01-31), 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).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 31,352 ÷ 6,592 = 4.76
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 2021 to 2022 and from 2022 to 2023. |
Total Asset Turnover
Salesforce Inc., total asset turnover calculation, comparison to benchmarks
| Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 31,352) | 26,492) | 21,252) | 17,098) | 13,282) | 10,480) | |
| Total assets | 98,849) | 95,209) | 66,301) | 55,126) | 30,737) | 21,010) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 0.32 | 0.28 | 0.32 | 0.31 | 0.43 | 0.50 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Accenture PLC | — | 1.30 | 1.17 | 1.20 | 1.45 | 1.70 | |
| Adobe Inc. | — | 0.65 | 0.58 | 0.53 | 0.54 | 0.48 | |
| International Business Machines Corp. | — | 0.48 | 0.43 | 0.47 | 0.51 | 0.65 | |
| Intuit Inc. | 0.52 | 0.46 | 0.62 | 0.70 | 1.08 | 1.15 | |
| Microsoft Corp. | 0.51 | 0.54 | 0.50 | 0.47 | 0.44 | 0.43 | |
| Oracle Corp. | 0.37 | 0.39 | 0.31 | 0.34 | 0.36 | 0.29 | |
| Palo Alto Networks Inc. | 0.48 | 0.45 | 0.42 | 0.38 | 0.44 | 0.39 | |
| ServiceNow Inc. | — | 0.54 | 0.55 | 0.52 | 0.57 | 0.67 | |
| Synopsys Inc. | — | 0.54 | 0.48 | 0.46 | 0.52 | 0.51 | |
| Total Asset Turnover, Sector | |||||||
| Software & Services | — | 0.52 | 0.48 | 0.48 | 0.50 | 0.50 | |
| Total Asset Turnover, Industry | |||||||
| Information Technology | — | 0.63 | 0.61 | 0.57 | 0.58 | 0.59 | |
Based on: 10-K (reporting date: 2023-01-31), 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).
1 2023 Calculation
Total asset turnover = Revenues ÷ Total assets
= 31,352 ÷ 98,849 = 0.32
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Equity Turnover
Salesforce Inc., equity turnover calculation, comparison to benchmarks
| Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 31,352) | 26,492) | 21,252) | 17,098) | 13,282) | 10,480) | |
| Stockholders’ equity | 58,359) | 58,131) | 41,493) | 33,885) | 15,605) | 9,388) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 0.54 | 0.46 | 0.51 | 0.50 | 0.85 | 1.12 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Accenture PLC | — | 2.79 | 2.59 | 2.61 | 3.00 | 4.01 | |
| Adobe Inc. | — | 1.25 | 1.07 | 0.97 | 1.06 | 0.96 | |
| International Business Machines Corp. | — | 2.76 | 3.03 | 3.57 | 3.70 | 4.74 | |
| Intuit Inc. | 0.83 | 0.77 | 0.98 | 1.50 | 1.81 | 2.53 | |
| Microsoft Corp. | 1.03 | 1.19 | 1.18 | 1.21 | 1.23 | 1.33 | |
| Oracle Corp. | 46.56 | — | 7.73 | 3.24 | 1.81 | 0.87 | |
| Palo Alto Networks Inc. | 3.94 | 26.20 | 6.71 | 3.09 | 1.83 | 2.35 | |
| ServiceNow Inc. | — | 1.44 | 1.60 | 1.59 | 1.63 | 2.35 | |
| Synopsys Inc. | — | 0.92 | 0.79 | 0.75 | 0.82 | 0.90 | |
| Equity Turnover, Sector | |||||||
| Software & Services | — | 1.44 | 1.44 | 1.52 | 1.66 | 1.67 | |
| Equity Turnover, Industry | |||||||
| Information Technology | — | 1.61 | 1.67 | 1.65 | 1.65 | 1.64 | |
Based on: 10-K (reporting date: 2023-01-31), 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).
1 2023 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= 31,352 ÷ 58,359 = 0.54
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |