Stock Analysis on Net

salesforce.com inc. (NYSE:CRM)

Analysis of Investments

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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, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Net income (loss) (as reported) 4,072  126  1,110  127  180  (47)
Add: Unrealized gains (losses) on marketable securities and privately held debt securities 15  26  (12) (4) 15  (9)
Net income (loss) (adjusted) 4,087  152  1,098  123  194  (57)

Based on: 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), 10-K (reporting date: 2016-01-31).


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

salesforce.com inc., adjusted profitability ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Net Profit Margin
Reported net profit margin 19.16% 0.74% 8.36% 1.22% 2.14% -0.71%
Adjusted net profit margin 19.23% 0.89% 8.27% 1.17% 2.31% -0.85%
Return on Equity (ROE)
Reported ROE 9.81% 0.37% 7.11% 1.36% 2.40% -0.95%
Adjusted ROE 9.85% 0.45% 7.04% 1.31% 2.59% -1.13%
Return on Assets (ROA)
Reported ROA 6.14% 0.23% 3.61% 0.61% 1.02% -0.37%
Adjusted ROA 6.16% 0.28% 3.57% 0.59% 1.10% -0.44%

Based on: 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), 10-K (reporting date: 2016-01-31).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. salesforce.com inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. salesforce.com inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. salesforce.com inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

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


Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 4,072  126  1,110  127  180  (47)
Revenues 21,252  17,098  13,282  10,480  8,392  6,667 
Profitability Ratio
Net profit margin1 19.16% 0.74% 8.36% 1.22% 2.14% -0.71%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 4,087  152  1,098  123  194  (57)
Revenues 21,252  17,098  13,282  10,480  8,392  6,667 
Profitability Ratio
Adjusted net profit margin2 19.23% 0.89% 8.27% 1.17% 2.31% -0.85%

Based on: 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), 10-K (reporting date: 2016-01-31).

2021 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Revenues
= 100 × 4,072 ÷ 21,252 = 19.16%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenues
= 100 × 4,087 ÷ 21,252 = 19.23%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. salesforce.com inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 4,072  126  1,110  127  180  (47)
Stockholders’ equity 41,493  33,885  15,605  9,388  7,500  5,003 
Profitability Ratio
ROE1 9.81% 0.37% 7.11% 1.36% 2.40% -0.95%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 4,087  152  1,098  123  194  (57)
Stockholders’ equity 41,493  33,885  15,605  9,388  7,500  5,003 
Profitability Ratio
Adjusted ROE2 9.85% 0.45% 7.04% 1.31% 2.59% -1.13%

Based on: 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), 10-K (reporting date: 2016-01-31).

2021 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 4,072 ÷ 41,493 = 9.81%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Stockholders’ equity
= 100 × 4,087 ÷ 41,493 = 9.85%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. salesforce.com inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 4,072  126  1,110  127  180  (47)
Total assets 66,301  55,126  30,737  21,010  17,585  12,771 
Profitability Ratio
ROA1 6.14% 0.23% 3.61% 0.61% 1.02% -0.37%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 4,087  152  1,098  123  194  (57)
Total assets 66,301  55,126  30,737  21,010  17,585  12,771 
Profitability Ratio
Adjusted ROA2 6.16% 0.28% 3.57% 0.59% 1.10% -0.44%

Based on: 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), 10-K (reporting date: 2016-01-31).

2021 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 4,072 ÷ 66,301 = 6.14%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Total assets
= 100 × 4,087 ÷ 66,301 = 6.16%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. salesforce.com inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.