Salesforce Inc. (NYSE:CRM)

Net fixed asset turnover

The net fixed asset turnover ratio exhibited a generally increasing trend from 7.2 in January 2020 to 11.71 in January 2025. There was a slight dip observed in January 2023 to 8.47, following an earlier peak of 9.41 in January 2022. The subsequent years show a robust recovery and growth, reaching the highest ratio in the final period.

Net fixed asset turnover (including operating lease, right-of-use asset)

This metric also shows an upward trajectory, rising from 3.16 in January 2020 to 7.03 in January 2025. The increase appears steady year over year, with a notable acceleration beginning in January 2023. The ratio nearly doubled over the five-year span, highlighting improved utilization of fixed assets inclusive of operating leases and right-of-use assets.

Total asset turnover

The total asset turnover ratio fluctuated modestly across the periods, starting at 0.31 in January 2020 and ending at 0.37 in January 2025. There was a decline to 0.28 in January 2022, but the ratio rebounded afterward, suggesting some variability in the efficiency of generating revenues from total assets, but generally a slight upward movement over the five years.

Equity turnover

Equity turnover exhibited a positive trend with an overall increase from 0.5 in January 2020 to 0.62 in January 2025. Although a dip was noted in January 2022 to 0.46, the subsequent years saw a significant rebound and consistent growth, which indicates more efficient use of shareholders’ equity in generating revenue.

Revenues

Over the six-year period, revenues demonstrated a consistent upward trend, increasing from 17,098 million US dollars in 2020 to 37,895 million US dollars in 2025. This represents more than a twofold increase, indicating strong and sustained growth in the company's sales or service income.

Property and Equipment, Net

The net value of property and equipment showed a moderate increase from 2,375 million US dollars in 2020 to a peak of 3,702 million US dollars in 2023. Thereafter, it experienced a decline, reaching 3,236 million US dollars by 2025. This pattern suggests initial investment or acquisition of fixed assets, followed by a reduction which could be due to disposals, depreciation, or shifts in asset management strategy.

Net Fixed Asset Turnover Ratio

The ratio of net fixed asset turnover exhibited fluctuating but generally improving efficiency over the observed period. Starting at 7.2 in 2020, it rose sharply to 9.41 by 2022, dipped slightly to 8.47 in 2023, then resumed an upward trajectory to reach 11.71 in 2025. This indicates improved utilization of fixed assets to generate revenues, suggesting operational enhancements or more effective asset management.

Revenues

Revenues exhibited a consistent upward trend over the six-year period. Starting at 17,098 million USD in 2020, revenues increased steadily each year, reaching 37,895 million USD by 2025. This represents a compound increase, highlighting strong growth and an expanding business scale.

Property and Equipment, Net (including operating lease, right-of-use asset)

The net value of property and equipment showed relative stability with minor fluctuations. From 5,415 million USD in 2020, it slightly increased and peaked at 6,592 million USD in 2023 before declining to 5,393 million USD in 2025. This pattern suggests possible asset optimization or disposal activities after a period of investment expansion.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

The net fixed asset turnover ratio consistently improved year-over-year, starting at 3.16 in 2020 and increasing sharply to 7.03 by 2025. This enhancement in asset efficiency indicates that the company generated significantly higher revenues per unit of fixed assets over time, reflecting better utilization or increased productivity of the asset base.

Revenue Trends

Revenue demonstrates a consistent upward trend from 2020 to 2025. It increased from $17,098 million in 2020 to $37,895 million in 2025, reflecting a more than doubling over the six-year period. The growth appears steady, with notable increments each year, indicating strong sales expansion and market demand.

Total Assets Evolution

Total assets have shown significant growth from 2020 to 2025. In 2020, total assets were recorded at $55,126 million, rising progressively to $102,928 million by 2025. This near-doubling suggests considerable asset acquisition or capital investment, potentially funding revenue growth or expansion activities.

Total Asset Turnover Analysis

The total asset turnover ratio, which measures revenue generated per unit of asset, fluctuates slightly throughout the period. Beginning at 0.31 in 2020, the ratio remained relatively stable around 0.31-0.32 until 2021, then dipped to 0.28 in 2022. Subsequently, it recovered to 0.37 by 2025. This indicates a brief decline in asset utilization efficiency in 2022, followed by improved efficiency afterwards, suggesting better management of assets or enhanced operational performance in recent years.

Summary of Financial Position and Operational Efficiency

The overall picture depicts a company experiencing robust growth in both revenues and total assets. While total assets increased sharply, the company managed to improve its asset turnover ratio after a dip, implying effective leveraging of assets to generate higher sales. This pattern highlights an improving operational efficiency and a strong capacity to sustain growth through asset investments.

The financial data exhibits several notable trends over the period analyzed. Revenues have demonstrated a consistent upward trajectory, rising from $17,098 million in the earliest period to $37,895 million in the latest. This represents more than a doubling in revenue over the six-year span, reflecting strong sales growth and potentially effective market expansion or product development strategies.

Stockholders' equity has also increased significantly, moving from $33,885 million to $61,173 million over the same timeframe. This growth in equity suggests that the company has retained earnings or raised additional capital, contributing to a stronger financial position and greater net asset value for shareholders.

The equity turnover ratio, which measures how efficiently the company generates revenues from its equity base, shows some fluctuation but an overall increasing trend. Starting at 0.5, it slightly increased to 0.51, dipped to 0.46, then steadily rose to 0.62 by the end of the period. This improvement indicates enhanced utilization of equity to generate revenue in recent years, suggesting growing operational efficiency or a more effective capital deployment strategy.

Revenues

Consistent increase each year, more than doubling from 2020 to 2025.

Stockholders’ Equity

Steady growth throughout the period, almost doubling over six years.

Equity Turnover Ratio

Fluctuated initially but showed a positive upward trend, indicating improved revenue generation efficiency relative to equity.