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

salesforce.com inc. (NYSE:CRM)

Return on Capital (ROC)

Advanced level

Return on Invested Capital (ROIC)

salesforce.com inc., ROIC calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,330  2,601  1,799  1,311  1,016  629 
Invested capital2 46,885  29,066  18,985  16,914  10,966  9,522 
Performance Ratio
ROIC3 4.97% 8.95% 9.47% 7.75% 9.27% 6.61%
Benchmarks
ROIC, Competitors4
Adobe Inc. 21.67% 19.74% 17.25% 22.06% 21.03% 11.74%
Alphabet Inc. 32.75% 34.31% 19.71% 26.91% 22.22%
Autodesk Inc. 21.62% 0.93% -11.17% -9.45% 8.45% 10.16%
Facebook Inc. 27.51% 36.42% 37.03% 25.08% 9.26%
International Business Machines Corp. 7.84% 8.46% 5.77% 10.53% 13.69%
Intuit Inc. 20.58% 34.72% 32.34% 36.84% 34.96% 28.34%
Microsoft Corp. 48.91% 42.06% 21.26% 35.75% 53.10% 29.69%
Oracle Corp. 11.53% 15.18% 5.88% 13.04% 15.80% 14.73%
ServiceNow Inc. 19.88% 15.78% 15.89% -10.81% 0.75%

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2020 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,330 ÷ 46,885 = 4.97%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. salesforce.com inc.’s ROIC deteriorated from 2018 to 2019 and from 2019 to 2020.

Decomposition of ROIC

salesforce.com inc., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Jan 31, 2020 4.97% = 15.13% × 0.41 × 80.24%
Jan 31, 2019 8.95% = 18.93% × 0.51 × 92.52%
Jan 31, 2018 9.47% = 16.11% × 0.63 × 92.79%
Jan 31, 2017 7.75% = 15.00% × 0.57 × 90.64%
Jan 31, 2016 9.27% = 15.40% × 0.70 × 86.41%
Jan 31, 2015 6.61% = 11.86% × 0.65 × 85.98%

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2020 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

salesforce.com inc., OPM calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,330  2,601  1,799  1,311  1,016  629 
Add: Cash operating taxes2 574  210  140  135  160  103 
Net operating profit before taxes (NOPBT) 2,904  2,811  1,939  1,446  1,176  732 
 
Revenues 17,098  13,282  10,480  8,392  6,667  5,374 
Add: Increase (decrease) in unearned revenue 2,098  1,569  1,552  1,251  970  799 
Adjusted revenues 19,196  14,851  12,032  9,643  7,637  6,173 
Profitability Ratio
OPM3 15.13% 18.93% 16.11% 15.00% 15.40% 11.86%
Benchmarks
OPM, Competitors4
Adobe Inc. 34.42% 31.93% 35.32% 33.91% 31.32% 24.23%
Alphabet Inc. 23.20% 23.81% 24.25% 26.49% 25.64%
Autodesk Inc. 30.50% 3.88% -13.37% -9.48% 13.40% 12.87%
Facebook Inc. 34.36% 44.37% 49.93% 44.85% 34.99%
International Business Machines Corp. 16.43% 14.56% 16.13% 16.19% 19.65%
Intuit Inc. 29.33% 28.32% 25.71% 28.07% 29.36% 24.51%
Microsoft Corp. 38.29% 36.61% 35.11% 31.99% 30.09% 19.34%
Oracle Corp. 34.29% 34.21% 35.42% 34.66% 35.32% 35.82%
ServiceNow Inc. 14.97% 14.28% 13.97% -7.00% 2.38%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues
= 100 × 2,904 ÷ 19,196 = 15.13%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. salesforce.com inc.’s OPM improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Turnover of Capital (TO)

salesforce.com inc., TO calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
Selected Financial Data (US$ in millions)
Revenues 17,098  13,282  10,480  8,392  6,667  5,374 
Add: Increase (decrease) in unearned revenue 2,098  1,569  1,552  1,251  970  799 
Adjusted revenues 19,196  14,851  12,032  9,643  7,637  6,173 
 
Invested capital1 46,885  29,066  18,985  16,914  10,966  9,522 
Efficiency Ratio
TO2 0.41 0.51 0.63 0.57 0.70 0.65
Benchmarks
TO, Competitors3
Adobe Inc. 0.70 0.67 0.61 0.77 0.77 0.66
Alphabet Inc. 1.61 1.58 1.69 1.25 1.05
Autodesk Inc. 0.76 0.61 0.69 0.67 0.79 0.83
Facebook Inc. 1.08 0.93 0.98 0.71 0.57
International Business Machines Corp. 0.59 0.71 0.73 0.75 0.81
Intuit Inc. 0.89 1.50 1.50 1.80 1.77 1.58
Microsoft Corp. 1.52 1.49 1.52 1.31 1.94 2.27
Oracle Corp. 0.44 0.55 0.55 0.49 0.58 0.57
ServiceNow Inc. 1.36 1.18 1.24 1.33 1.14

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).

1 Invested capital. See details »

2 2020 Calculation
TO = Adjusted revenues ÷ Invested capital
= 19,196 ÷ 46,885 = 0.41

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. salesforce.com inc.’s TO deteriorated from 2018 to 2019 and from 2019 to 2020.

Effective Cash Tax Rate (CTR)

salesforce.com inc., CTR calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,330  2,601  1,799  1,311  1,016  629 
Add: Cash operating taxes2 574  210  140  135  160  103 
Net operating profit before taxes (NOPBT) 2,904  2,811  1,939  1,446  1,176  732 
Tax Rate
CTR3 19.76% 7.48% 7.21% 9.36% 13.59% 14.02%
Benchmarks
CTR, Competitors4
Adobe Inc. 9.63% 7.06% 19.97% 15.15% 12.85% 26.06%
Alphabet Inc. 12.46% 8.68% 52.04% 18.98% 17.49%
Autodesk Inc. 6.38% 60.79% 20.47% 5.36%
Facebook Inc. 25.67% 11.36% 24.12% 21.75% 53.24%
International Business Machines Corp. 18.55% 18.30% 51.29% 13.24% 13.55%
Intuit Inc. 21.07% 18.38% 16.40% 27.07% 32.70% 26.75%
Microsoft Corp. 15.80% 22.65% 60.11% 14.62% 9.05% 32.49%
Oracle Corp. 23.42% 19.20% 70.01% 22.82% 22.47% 27.32%
ServiceNow Inc. 2.51% 6.49% 8.20% 72.30%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 574 ÷ 2,904 = 19.76%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. salesforce.com inc.’s CTR increased from 2018 to 2019 and from 2019 to 2020.