Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

$24.99

Current Ratio
since 2005

Microsoft Excel

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Calculation

Salesforce Inc., current ratio, long-term trends, calculation

Microsoft Excel

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), 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), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-01-31), 10-K (reporting date: 2012-01-31), 10-K (reporting date: 2011-01-31), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-01-31), 10-K (reporting date: 2007-01-31), 10-K (reporting date: 2006-01-31), 10-K (reporting date: 2005-01-31).

1 US$ in millions


The analysis of the annual financial data reveals several notable trends in the company's liquidity position over the period from 2005 to 2025. The current assets show a general upward trajectory, increasing from US$179 million in 2005 to an estimated US$29,727 million by 2025. This represents significant growth in the company's short-term assets available to meet obligations.

Similarly, current liabilities have also increased substantially over the same period, rising from US$132 million in 2005 to a projected US$27,980 million in 2025. This indicates a rising short-term financial obligation alongside the growth in assets.

The current ratio, defined as current assets divided by current liabilities, illustrates the company's ability to cover its short-term liabilities with short-term assets. The ratio starts at 1.36 in 2005, suggesting a comfortable liquidity position initially. However, it declines steadily and drops below 1.0 from 2011 to 2014, reaching as low as 0.67 in 2014. This indicates a period during which current liabilities exceeded current assets, raising potential liquidity concerns.

From 2015 onward, the current ratio exhibits a gradual recovery trend, moving back above the critical threshold of 1.0 by 2016 and fluctuating around 1.0 to 1.23 up to 2025. This suggests improving liquidity and increasing capacity to meet short-term obligations comfortably in later years.

Overall, the data portrays a company that experienced rapid growth in both current assets and liabilities but faced temporary liquidity strain in the early 2010s. The subsequent recovery in the current ratio reflects efforts to stabilize liquidity while continuing asset and liability expansion. The current ratio hovering near unity in recent years suggests balanced short-term financial management, though continued monitoring is advisable given the high absolute values of liabilities.

Current assets
Increased significantly from US$179 million in 2005 to an estimated US$29,727 million in 2025, indicating substantial growth in liquid resources.
Current liabilities
Rose from US$132 million in 2005 to roughly US$27,980 million in 2025, reflecting an increase in short-term obligations.
Current ratio
Started at 1.36 in 2005, declined below 1.0 during 2011–2014 (lowest at 0.67), then recovered above 1.0 by 2016, stabilizing around 1.0 to 1.23 through 2025.

Comparison to Competitors

Salesforce Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

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), 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), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-01-31), 10-K (reporting date: 2012-01-31), 10-K (reporting date: 2011-01-31), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-01-31), 10-K (reporting date: 2007-01-31), 10-K (reporting date: 2006-01-31), 10-K (reporting date: 2005-01-31).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)