Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Salesforce Inc., short-term (operating) 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Salesforce Inc. receivables turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Salesforce Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Receivables Turnover
Salesforce Inc., receivables 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 | |
| Accounts receivable, net | 9,739 | 7,786 | 6,174 | 4,924 | 3,917 | 3,197 | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 2.72 | 2.73 | 2.77 | 2.70 | 2.68 | 2.63 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Accenture PLC | — | 5.74 | 6.16 | 5.79 | 8.33 | 8.05 | |
| Adobe Inc. | — | 8.41 | 9.20 | 7.28 | 6.86 | 5.99 | |
| Automatic Data Processing Inc. | — | 5.50 | 5.98 | 5.81 | 6.72 | 7.27 | |
| International Business Machines Corp. | — | 8.49 | 10.32 | 9.80 | 10.71 | 8.86 | |
| Intuit Inc. | — | 24.64 | 51.54 | 77.98 | 60.86 | 50.26 | |
| Mastercard Inc. | — | 14.32 | 8.97 | 5.64 | 6.10 | 9.09 | |
| Microsoft Corp. | — | 4.42 | 4.47 | 4.26 | 4.17 | 4.54 | |
| Oracle Corp. | 7.13 | 7.48 | 7.04 | 7.69 | 7.55 | 7.12 | |
| PayPal Holdings Inc. | — | 31.71 | 37.18 | 40.86 | 49.36 | 46.27 | |
| ServiceNow Inc. | — | 4.24 | 4.48 | 4.14 | 4.54 | 4.44 | |
| Visa Inc. | — | 13.71 | 17.28 | 7.54 | 13.03 | 12.91 | |
| Receivables Turnover, Sector | |||||||
| Software & Services | — | 5.87 | 6.24 | 5.92 | 6.45 | 6.68 | |
| Receivables Turnover, Industry | |||||||
| Information Technology | — | 7.86 | 8.34 | 7.68 | 7.93 | 8.30 | |
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
Receivables turnover = Revenues ÷ Accounts receivable, net
= 26,492 ÷ 9,739 = 2.72
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Salesforce Inc. receivables turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Payables Turnover
Salesforce Inc., payables 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) | |||||||
| Cost of revenues | 7,026 | 5,438 | 4,235 | 3,451 | 2,774 | 2,234 | |
| Accounts payable | — | — | — | — | — | — | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Accenture PLC | — | 15.03 | 22.48 | 18.16 | 21.62 | 16.87 | |
| Adobe Inc. | — | 5.98 | 5.63 | 7.98 | 6.42 | 8.90 | |
| Automatic Data Processing Inc. | — | 61.24 | 82.80 | 64.44 | 57.92 | 48.56 | |
| International Business Machines Corp. | — | 6.54 | 7.75 | 8.30 | 6.50 | 6.65 | |
| Intuit Inc. | — | 2.70 | 4.52 | 4.26 | 5.49 | 5.15 | |
| Mastercard Inc. | — | 20.68 | 10.37 | 6.22 | 6.83 | 9.31 | |
| Microsoft Corp. | — | 3.44 | 3.68 | 4.57 | 4.45 | 4.64 | |
| Oracle Corp. | 6.74 | 10.54 | 12.46 | 13.78 | 15.28 | 12.47 | |
| PayPal Holdings Inc. | — | 68.27 | 45.45 | 42.18 | 29.40 | 26.05 | |
| ServiceNow Inc. | — | 15.20 | 28.83 | 15.04 | 20.26 | 15.56 | |
| Visa Inc. | — | 9.87 | 12.58 | 5.76 | 9.51 | 9.17 | |
| Payables Turnover, Sector | |||||||
| Software & Services | — | 7.28 | 7.94 | 7.73 | 7.90 | 7.98 | |
| Payables Turnover, Industry | |||||||
| Information Technology | — | 5.41 | 5.76 | 5.46 | 4.90 | 4.94 | |
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
Payables turnover = Cost of revenues ÷ Accounts payable
= 7,026 ÷ 0 = —
2 Click competitor name to see calculations.
Working Capital Turnover
Salesforce Inc., working capital 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) | |||||||
| Current assets | 22,850 | 21,889 | 15,963 | 10,683 | 9,290 | 5,997 | |
| Less: Current liabilities | 21,788 | 17,728 | 14,845 | 11,255 | 10,130 | 7,258 | |
| Working capital | 1,062 | 4,161 | 1,118 | (572) | (839) | (1,262) | |
| Revenues | 26,492 | 21,252 | 17,098 | 13,282 | 10,480 | 8,392 | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 24.95 | 5.11 | 15.29 | — | — | — | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Accenture PLC | — | 12.77 | 8.71 | 9.85 | 12.12 | 16.17 | |
| Adobe Inc. | — | 9.09 | 4.89 | — | 16.24 | 1.96 | |
| Automatic Data Processing Inc. | — | 5.67 | 10.15 | 8.27 | 8.14 | 4.35 | |
| International Business Machines Corp. | — | — | — | 107.30 | 7.29 | 6.40 | |
| Intuit Inc. | — | 3.85 | 1.73 | 4.17 | 20.71 | — | |
| Mastercard Inc. | — | 4.99 | 2.11 | 3.38 | 3.27 | 2.50 | |
| Microsoft Corp. | — | 1.76 | 1.30 | 1.19 | 0.99 | 0.94 | |
| Oracle Corp. | 3.50 | 1.29 | 1.12 | 1.42 | 0.70 | 0.75 | |
| PayPal Holdings Inc. | — | 2.66 | 1.71 | 1.54 | 2.19 | 1.34 | |
| ServiceNow Inc. | — | 21.76 | 5.76 | 46.69 | 7.86 | 6.24 | |
| Visa Inc. | — | 2.03 | 1.66 | 3.04 | 2.98 | 2.03 | |
| Working Capital Turnover, Sector | |||||||
| Software & Services | — | 2.77 | 2.16 | 2.39 | 1.79 | 1.71 | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | — | 3.82 | 2.81 | 3.05 | 2.82 | 2.11 | |
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
Working capital turnover = Revenues ÷ Working capital
= 26,492 ÷ 1,062 = 24.95
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Salesforce Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Average Receivable Collection Period
Salesforce Inc., average receivable collection period 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 | |||||||
| Receivables turnover | 2.72 | 2.73 | 2.77 | 2.70 | 2.68 | 2.63 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 134 | 134 | 132 | 135 | 136 | 139 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Accenture PLC | — | 64 | 59 | 63 | 44 | 45 | |
| Adobe Inc. | — | 43 | 40 | 50 | 53 | 61 | |
| Automatic Data Processing Inc. | — | 66 | 61 | 63 | 54 | 50 | |
| International Business Machines Corp. | — | 43 | 35 | 37 | 34 | 41 | |
| Intuit Inc. | — | 15 | 7 | 5 | 6 | 7 | |
| Mastercard Inc. | — | 25 | 41 | 65 | 60 | 40 | |
| Microsoft Corp. | — | 83 | 82 | 86 | 88 | 80 | |
| Oracle Corp. | 51 | 49 | 52 | 47 | 48 | 51 | |
| PayPal Holdings Inc. | — | 12 | 10 | 9 | 7 | 8 | |
| ServiceNow Inc. | — | 86 | 82 | 88 | 80 | 82 | |
| Visa Inc. | — | 27 | 21 | 48 | 28 | 28 | |
| Average Receivable Collection Period, Sector | |||||||
| Software & Services | — | 62 | 59 | 62 | 57 | 55 | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | — | 46 | 44 | 48 | 46 | 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 2.72 = 134
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Average Payables Payment Period
Salesforce Inc., average payables payment period 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 | |||||||
| Payables turnover | — | — | — | — | — | — | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | — | — | — | — | — | — | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Accenture PLC | — | 24 | 16 | 20 | 17 | 22 | |
| Adobe Inc. | — | 61 | 65 | 46 | 57 | 41 | |
| Automatic Data Processing Inc. | — | 6 | 4 | 6 | 6 | 8 | |
| International Business Machines Corp. | — | 56 | 47 | 44 | 56 | 55 | |
| Intuit Inc. | — | 135 | 81 | 86 | 66 | 71 | |
| Mastercard Inc. | — | 18 | 35 | 59 | 53 | 39 | |
| Microsoft Corp. | — | 106 | 99 | 80 | 82 | 79 | |
| Oracle Corp. | 54 | 35 | 29 | 26 | 24 | 29 | |
| PayPal Holdings Inc. | — | 5 | 8 | 9 | 12 | 14 | |
| ServiceNow Inc. | — | 24 | 13 | 24 | 18 | 23 | |
| Visa Inc. | — | 37 | 29 | 63 | 38 | 40 | |
| Average Payables Payment Period, Sector | |||||||
| Software & Services | — | 50 | 46 | 47 | 46 | 46 | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | — | 68 | 63 | 67 | 74 | 74 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ — = —
2 Click competitor name to see calculations.