Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

salesforce.com inc. (NYSE:CRM)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

salesforce.com inc., adjustment to net income (loss)

US$ in millions

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12 months ended: Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
Net income (loss) (as reported) 126  1,110  127  180  (47) (263)
Add: Unrealized gains (losses) on marketable securities and privately held debt securities 26  (12) (4) 15  (9) 1 
Net income (loss) (adjusted) 152  1,098  123  194  (57) (261)

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

salesforce.com inc., adjusted profitability ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
Net Profit Margin
Reported net profit margin 0.74% 8.36% 1.22% 2.14% -0.71% -4.89%
Adjusted net profit margin 0.89% 8.27% 1.17% 2.31% -0.85% -4.86%
Return on Equity (ROE)
Reported ROE 0.37% 7.11% 1.36% 2.40% -0.95% -6.61%
Adjusted ROE 0.45% 7.04% 1.31% 2.59% -1.13% -6.57%
Return on Assets (ROA)
Reported ROA 0.23% 3.61% 0.61% 1.02% -0.37% -2.46%
Adjusted ROA 0.28% 3.57% 0.59% 1.10% -0.44% -2.44%

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. salesforce.com inc.’s adjusted net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. salesforce.com inc.’s adjusted ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. salesforce.com inc.’s adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

salesforce.com inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 126  1,110  127  180  (47) (263)
Revenues 17,098  13,282  10,480  8,392  6,667  5,374 
Profitability Ratio
Net profit margin1 0.74% 8.36% 1.22% 2.14% -0.71% -4.89%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 152  1,098  123  194  (57) (261)
Revenues 17,098  13,282  10,480  8,392  6,667  5,374 
Profitability Ratio
Adjusted net profit margin2 0.89% 8.27% 1.17% 2.31% -0.85% -4.86%

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

2020 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Revenues
= 100 × 126 ÷ 17,098 = 0.74%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenues
= 100 × 152 ÷ 17,098 = 0.89%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. salesforce.com inc.’s adjusted net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 126  1,110  127  180  (47) (263)
Stockholders’ equity 33,885  15,605  9,388  7,500  5,003  3,975 
Profitability Ratio
ROE1 0.37% 7.11% 1.36% 2.40% -0.95% -6.61%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 152  1,098  123  194  (57) (261)
Stockholders’ equity 33,885  15,605  9,388  7,500  5,003  3,975 
Profitability Ratio
Adjusted ROE2 0.45% 7.04% 1.31% 2.59% -1.13% -6.57%

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

2020 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 126 ÷ 33,885 = 0.37%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Stockholders’ equity
= 100 × 152 ÷ 33,885 = 0.45%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. salesforce.com inc.’s adjusted ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 126  1,110  127  180  (47) (263)
Total assets 55,126  30,737  21,010  17,585  12,771  10,693 
Profitability Ratio
ROA1 0.23% 3.61% 0.61% 1.02% -0.37% -2.46%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 152  1,098  123  194  (57) (261)
Total assets 55,126  30,737  21,010  17,585  12,771  10,693 
Profitability Ratio
Adjusted ROA2 0.28% 3.57% 0.59% 1.10% -0.44% -2.44%

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

2020 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 126 ÷ 55,126 = 0.23%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Total assets
= 100 × 152 ÷ 55,126 = 0.28%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. salesforce.com inc.’s adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.