Analysis of Debt
Total Debt (Carrying Amount)
Salesforce Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 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).
The analyzed data reveals several notable trends concerning the various categories of debt and finance lease liabilities over the reported periods.
- Finance Lease Liabilities, Current
- There is a noticeable fluctuation in current finance lease liabilities over the years. Starting at $53 million, the amount decreased to $35 million in 2021, then sharply increased to $114 million in 2022. The upward trend accelerated with a sizable jump to $257 million in 2023 and a continued rise to $372 million in 2024, followed by a minor decline to $337 million in 2025. This indicates increasing utilization of short-term finance leases with some recent stabilization.
- Debt, Current
- This category remained stable at $4 million from 2020 through 2022. However, there was a significant surge in 2023 to $1,182 million, slightly declining to $999 million in 2024, with no data for 2025. This abrupt increase suggests a shift towards higher short-term borrowing or refinancing activities during the latter years.
- Noncurrent Debt, Excluding Current Portion
- The noncurrent debt displayed relative stability initially, remaining at $2,673 million in both 2020 and 2021. A dramatic increase occurred in 2022, reaching $10,592 million. Subsequently, the balance decreased over the next years to $9,419 million in 2023 and then to $8,427 million in 2024, maintaining a similar level at $8,433 million in 2025. This pattern indicates a strategic increase in long-term debt followed by partial repayments or restructuring.
- Noncurrent Finance Lease Liabilities
- These liabilities show a varying pattern: starting at $332 million in 2020, they dropped sharply to $93 million in 2021. Thereafter, the amounts increased to $271 million in 2022 and continued rising to $534 million in 2023 and $602 million in 2024. In 2025, there was a notable decrease to $341 million. This variability highlights adjustments in long-term lease arrangements, with a peak and subsequent reduction in the most recent year.
- Total Debt and Finance Lease Liabilities (Carrying Amount)
- The aggregated total indicates an overall growth from $3,062 million in 2020 to a peak of $11,392 million in 2023. After reaching this level, the total debt declined to $10,400 million in 2024 and further to $9,111 million in 2025. This suggests an expansion phase in the earlier years, followed by a moderate deleveraging or optimization of the debt portfolio in the most recent periods.
Total Debt (Fair Value)
| Jan 31, 2025 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Senior Notes | 6,600) |
| Loan assumed on 50 Fremont | —) |
| Finance lease liabilities | 678) |
| Total debt and finance lease liabilities (fair value) | 7,278) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.80 |
Based on: 10-K (reporting date: 2025-01-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt and finance lease liabilities: 2.78%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.70% | 1,496) | 55) | |
| 1.50% | 995) | 15) | |
| 1.95% | 1,491) | 29) | |
| 2.70% | 1,236) | 33) | |
| 2.90% | 1,979) | 57) | |
| 3.05% | 1,236) | 38) | |
| 3.80% | 678) | 26) | |
| Total | 9,111) | 254) | |
| 2.78% | |||
Based on: 10-K (reporting date: 2025-01-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 254 ÷ 9,111 = 2.78%