Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

$24.99

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

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Balance-Sheet-Based Accruals Ratio

Salesforce Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Operating Assets
Total assets
Less: Cash and cash equivalents
Less: Marketable securities
Operating assets
Operating Liabilities
Total liabilities
Less: Finance lease liabilities, current
Less: Debt, current
Less: Noncurrent debt, excluding current portion
Less: Noncurrent finance lease liabilities
Operating liabilities
 
Net operating assets1
Balance-sheet-based aggregate accruals2
Financial Ratio
Balance-sheet-based accruals ratio3
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
Balance-Sheet-Based Accruals Ratio, Sector
Software & Services
Balance-Sheet-Based Accruals Ratio, Industry
Information Technology

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).

1 2025 Calculation
Net operating assets = Operating assets – Operating liabilities
= =

2 2025 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2025 – Net operating assets2024
= =

3 2025 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × ÷ [( + ) ÷ 2] =

4 Click competitor name to see calculations.


Net Operating Assets
The net operating assets exhibited a significant increase from 32,332 million US dollars in January 2021 to a peak of 58,575 million US dollars in January 2022. Following this peak, the figure experienced a gradual decline over the next two years, reaching 55,852 million in January 2024. A slight increase is observed in January 2025, bringing the total to 56,252 million. This trend indicates an initial rapid expansion in operating assets, followed by a stabilization at a moderately lower level.
Balance-sheet-based Aggregate Accruals
The aggregate accruals showed considerable volatility throughout the periods. Starting at 3,332 million US dollars in January 2021, there was a sharp increase to 26,243 million in January 2022. However, in the subsequent two years, the accruals shifted dramatically into negative territory, registering -1,332 million and -1,391 million in January 2023 and January 2024, respectively. In January 2025, the accruals returned to a positive value of 400 million. This fluctuation suggests notable changes in accounting estimates or earnings management practices over the years.
Balance-sheet-based Accruals Ratio
The accruals ratio mirrored the pattern seen in aggregate accruals and reflected the relative magnitude of accruals concerning net operating assets. It increased notably from 10.87% in January 2021 to a high of 57.74% in January 2022, indicating a substantial proportion of accruals relative to net operating assets during that year. The ratio then dropped into negative values in the following two years, with -2.3% in January 2023 and -2.46% in January 2024, reflecting the negative accrual levels recorded previously. In January 2025, the ratio reversed direction again, rising slightly to 0.71%, suggesting minimal positive accrual activity in relation to net operating assets.

Cash-Flow-Statement-Based Accruals Ratio

Salesforce Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Net income
Less: Net cash provided by operating activities
Less: Net cash used in investing activities
Cash-flow-statement-based aggregate accruals
Financial Ratio
Cash-flow-statement-based accruals ratio1
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
Cash-Flow-Statement-Based Accruals Ratio, Sector
Software & Services
Cash-Flow-Statement-Based Accruals Ratio, Industry
Information Technology

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).

1 2025 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × ÷ [( + ) ÷ 2] =

2 Click competitor name to see calculations.


Net Operating Assets
The net operating assets increased significantly from 32,332 million USD in 2021 to 58,575 million USD in 2022, indicating a substantial expansion in operational investment during that period. Subsequently, the figure slightly declined over the next three years, reaching 56,252 million USD in 2025. This suggests a stabilization phase after rapid growth.
Cash-flow-statement-based Aggregate Accruals
Aggregate accruals demonstrated considerable volatility. Initially, accruals rose sharply from 3,242 million USD in 2021 to 9,980 million USD in 2022, indicating increased non-cash adjustments affecting earnings. From 2023 onwards, accruals turned negative, with values of -4,914 million USD in 2023, -4,771 million USD in 2024, and -3,732 million USD in 2025, reflecting a reversal in accruals and potential adjustments to earnings quality or cash flow timing.
Cash-flow-statement-based Accruals Ratio
This ratio mirrors the trend observed in aggregate accruals, moving from a positive 10.57% in 2021 to 21.96% in 2022, suggesting increased reliance on accrual accounting impacts relative to net operating assets. The ratio then shifted to negative values in subsequent years (-8.49% in 2023, -8.44% in 2024, and -6.66% in 2025), indicating a reduction in accruals relative to operating assets and possibly implying a movement towards earnings supported by actual cash flows rather than accrual adjustments.