Salesforce Inc. (NYSE:CRM)

Total Asset Turnover

The reported total asset turnover ratio shows a fluctuating pattern, starting at 0.31 in 2020, dipping to 0.28 in 2022, and rising steadily thereafter to 0.37 by 2025. The adjusted ratio follows a similar trend but at consistently higher levels, increasing from 0.35 in 2020 to 0.40 in 2025, indicating an improving efficiency in asset utilization over time.

Current Ratio

The reported current ratio exhibits moderate variability, initially increasing from 1.08 in 2020 to 1.23 in 2021, then declining to 1.02 in 2023 before settling around 1.06 in 2025. In contrast, the adjusted current ratio is significantly higher, consistently above 3.3, displaying a decline from 4.27 in 2021 to 3.34 in 2023, followed by recovery to 4.29 in 2025, reflecting strong short-term liquidity with some fluctuations.

Debt to Equity

Reported debt to equity ratios start low at 0.09 in 2020, decrease slightly in 2021, then increase notably to 0.20 in 2023 before gradually decreasing to 0.15 by 2025. The adjusted ratios mirror this pattern but at marginally higher values, suggesting a cautious increase in leverage mid-period before reduction towards the end of the period.

Debt to Capital

The debt to capital ratio follows a similar trend to debt to equity, with reported figures rising from 0.08 in 2020 to 0.16 in 2023, then declining to 0.13 in 2025. Adjusted figures maintain higher values but also show a rise and subsequent reduction, reflecting a transient increase in reliance on debt financing followed by deleveraging.

Financial Leverage

Reported financial leverage remains relatively stable, fluctuating slightly between 1.60 and 1.69 throughout the period, indicating consistent capital structure. Adjusted financial leverage is lower, generally between 1.23 and 1.30, with a minor downtrend towards 1.26 in 2025, suggesting a conservative approach to leverage when adjustments are considered.

Net Profit Margin

The reported net profit margin shows high volatility, beginning at a low 0.74% in 2020, surging to 19.16% in 2021, dropping sharply to below 1% by 2023, and rebounding to 16.35% in 2025. The adjusted margin is comparatively more stable, ranging from a low of 6.41% in 2023 to a high of 18.44% in 2021, then improving again towards the end of the period, indicating fluctuating profitability influenced by adjustments.

Return on Equity (ROE)

Reported ROE is quite volatile, starting near zero at 0.37% in 2020, peaking at 9.81% in 2021, falling back to 0.36% in 2023, and then increasing to 10.13% by 2025. Adjusted ROE shows a smoother pattern, ranging from 2.84% to 8.72%, which suggests that profitability from equity fluctuates substantially but adjustment factors moderate the extremes.

Return on Assets (ROA)

The reported ROA follows a similar volatile trend as ROE and net profit margin, with a low of 0.21% in 2023 and a peak of 6.14% in 2021, recovering to 6.02% in 2025. The adjusted ROA remains more consistent, varying from 2.18% to 6.90%, indicating moderate asset profitability with fluctuations that are tempered by adjustments.

Over the analyzed period, the revenues demonstrate a consistent upward trajectory, increasing from $17,098 million in January 2020 to $37,895 million in January 2025. This reflects a strong growth trend, with revenues more than doubling within five years.

Total assets also exhibit a general increasing trend, rising from $55,126 million in January 2020 to $102,928 million by January 2025. However, the rate of asset growth is less steep than that of revenues, indicating improving efficiency in asset utilization over time.

The reported total asset turnover ratio fluctuates slightly but generally improves over the years. Beginning at 0.31 in January 2020, it experiences minor variations before reaching 0.37 in January 2025. This suggests an enhanced capacity to generate revenue per unit of asset, pointing to better operational efficiency.

Adjusted revenues follow a similar pattern to reported revenues, growing from $19,196 million in January 2020 to $39,635 million in January 2025. The adjusted revenue figures are consistently higher than the reported ones, indicating that adjustments made for analytical purposes result in a more favorable revenue view.

Adjusted total assets also increase over the time frame, moving from $55,126 million in January 2020 to $99,439 million in January 2025. Despite the rise, adjusted assets remain slightly lower than reported total assets in later years, which may reflect certain asset reclassifications or refinements in measurement.

The adjusted total asset turnover ratio shows an overall positive trend, starting at 0.35 in January 2020 and reaching 0.40 in January 2025. This ratio consistently remains above the reported turnover, reinforcing the impression of improving asset efficiency when adjustments are taken into account.

In summary, the data reveals sustained revenue growth paired with increasing total assets and improving asset turnover ratios, both reported and adjusted. The increasing turnover ratios highlight enhanced effectiveness in using assets to generate revenues, while the adjustments made provide a more optimistic perspective on operational performance.

The financial data reveals evolving trends in liquidity and short-term financial health over the six-year period.

Current assets:

There is a consistent upward trend in current assets, increasing from US$15,963 million in 2020 to US$29,727 million in 2025. This growth suggests an improving capacity to cover short-term obligations through asset accumulation.

Current liabilities:

Current liabilities also show a steady increase from US$14,845 million in 2020 to US$27,980 million in 2025. The rise in liabilities parallels the growth in current assets, which maintains a relatively balanced financial position.

Reported current ratio:

The reported current ratio fluctuates between 1.02 and 1.23 throughout the reviewed period. Starting at 1.08 in 2020, it peaks at 1.23 in 2021, then declines close to parity at 1.02 in 2023 before slightly recovering to 1.06 in 2025. These movements indicate marginal variations in the ability to meet short-term liabilities with current assets, generally remaining just above the threshold of 1.0, which is often considered a minimum for adequate liquidity.

Adjusted current liabilities:

Adjusted current liabilities increase notably from US$4,183 million in 2020 to a peak of US$7,908 million in 2023, followed by a reduction to US$6,935 million in 2025. This adjustment likely excludes certain liabilities to refine the liquidity assessment. The peak in 2023 suggests a temporary rise in adjusted obligations that subsequently decreases towards 2025.

Adjusted current ratio:

The adjusted current ratio remains consistently higher than the reported current ratio, ranging from 3.34 to 4.29 over the years. This metric starts at 3.82 in 2020, increases to 4.27 in 2021, dips to 3.34 in 2023, and rises again to 4.29 by 2025. Such levels indicate a robust liquidity position when considering adjusted liabilities, signaling a strong coverage of short-term adjusted obligations by current assets.

Overall, despite the increase in both current assets and liabilities, the company's liquidity ratios demonstrate stability with some fluctuations. The discrepancy between reported and adjusted ratios points to the importance of liability adjustments in assessing true liquidity strength. The trends suggest consistent financial management in maintaining short-term solvency, with adjusted measures reflecting a notably stronger liquidity buffer than standard calculations indicate.

The analysis of the financial data over the six-year period reveals several notable trends in the debt and equity structure.

Total debt

Total debt exhibited volatility, initially decreasing from 3,062 million USD in 2020 to 2,805 million USD in 2021, before sharply rising to a peak of 11,392 million USD in 2023. Afterward, it declined to 9,111 million USD by 2025, indicating a recent trend towards debt reduction.

Stockholders’ equity

Stockholders’ equity demonstrated consistent growth throughout the period, starting at 33,885 million USD in 2020 and increasing steadily to 61,173 million USD by 2025. This upward trend suggests strengthening capital base and retained earnings.

Reported debt to equity ratio

The reported debt to equity ratio moved in alignment with the changes in total debt and equity. It decreased slightly from 0.09 in 2020 to 0.07 in 2021, then significantly rose to 0.20 in 2023, reflecting increased leverage before declining again to 0.15 in 2025, indicating improved financial leverage after the peak.

Adjusted total debt

Adjusted total debt followed a similar pattern to total debt but at higher values, increasing from 6,257 million USD in 2020 to a high of 14,879 million USD in 2023, then declining to 12,070 million USD by 2025. This adjustment likely includes additional debt-like obligations or off-balance sheet items, highlighting more extensive indebtedness than reported total debt alone.

Adjusted stockholders’ equity

Adjusted stockholders’ equity also trended upward from 44,699 million USD in 2020 to 78,729 million USD in 2025, showing a substantial increase that surpasses the reported equity figures. The adjustment could reflect additional components such as unrealized gains or other comprehensive income elements.

Adjusted debt to equity ratio

Similar to the reported ratio, the adjusted debt to equity ratio remained relatively low in 2020 and 2021 (0.14 and 0.12 respectively), surged to 0.20 in 2022-2023, and then declined to 0.15 by 2025. This pattern demonstrates an overall increase in financial leverage during the middle years, followed by a moderation in leverage.

In summary, the data indicates an initial phase of lower debt levels followed by a significant increase in leverage around 2022 and 2023, which then reverses towards a more conservative capital structure in the final periods. Equity has shown steady growth without interruption, enhancing the company’s financial stability. The adjusted figures provide a more comprehensive view of the financing structure and confirm the observed trends, emphasizing greater underlying debt levels and equity strength than the reported amounts alone.

The financial data reveals significant movements in both debt levels and capital structure over the six-year period. Total debt experienced a substantial increase from January 2020 through January 2022, more than tripling from US$3,062 million to US$10,981 million. After peaking in 2023 at US$11,392 million, total debt exhibited a declining trend during the last two years, reaching US$9,111 million by January 2025.

Total capital consistently grew throughout the period, starting at US$36,947 million in January 2020 and reaching US$70,284 million by January 2025. The growth was particularly notable from January 2021 to January 2022 when total capital increased by over 55%, indicating an expansion in the company's funding base.

The reported debt to capital ratio closely follows the debt and capital changes, rising from 0.08 in January 2020 to a peak of 0.16 in January 2022 and 2023, then gradually declining to 0.13 by January 2025. This illustrates that while debt levels rose sharply early in the period, the company's capital base also expanded sufficiently to moderate leverage towards the end.

When considering adjusted total debt, which likely accounts for off-balance sheet items or other liabilities, the upward trend in debt is even more pronounced. Adjusted total debt grew from US$6,257 million in January 2020 to a high of US$14,879 million in January 2023 before decreasing to US$12,070 million by January 2025. This suggests a substantial increase in overall obligations over the period, followed by a modest reduction in recent years.

Adjusted total capital similarly shows considerable growth, increasing from US$50,956 million in January 2020 to US$90,799 million in January 2025. This reflects a robust expansion of the company's financing structure, supporting larger operations or investments.

The adjusted debt to capital ratio started at 0.12 in January 2020, rose to a peak of 0.17 in January 2022 and 2023, then declined back to 0.13 by January 2025. The pattern closely parallels the reported ratio but indicates slightly higher leverage when adjusted debt is considered. Overall, the company has managed to reduce leverage from its peak while concurrently growing its capital base.

In summary, the data illustrates a period of aggressive debt accumulation and capital expansion up to early 2023, followed by efforts to deleverage somewhat while maintaining strong capital growth. The adjustment metrics suggest that comprehensive debt exposure is higher than reported figures alone imply but that the company maintains a manageable debt-to-capital structure towards the end of the observed timeframe.

Total Debt

Tripled from 2020 to 2022, peaked in 2023, declined through 2025.

Total Capital

Consistent and significant growth throughout the period, nearly doubling from 2020 to 2025.

Reported Debt to Capital Ratio

Increased to 0.16 by 2022-2023, then decreased toward 0.13 by 2025, indicating moderated leverage.

Adjusted Total Debt

Higher than reported debt; grew sharply until 2023, then gradually declined.

Adjusted Total Capital

Marked growth mirroring total capital, demonstrating expanding financial capacity.

Adjusted Debt to Capital Ratio

Peaked at 0.17 in 2022-2023 and subsequently decreased to 0.13 by 2025, indicating improvement in adjusted leverage.

Total assets

The total assets exhibit a consistent upward trend over the six-year period. Starting at approximately $55.1 billion in early 2020, total assets increased steadily each year, reaching around $102.9 billion by early 2025. The most significant jump occurs between 2021 and 2022, with an increase of nearly $28 billion, followed by more moderate growth in subsequent years.

Stockholders’ equity

Stockholders’ equity also shows a robust and steady increase throughout the timeframe. Beginning at $33.9 billion in 2020, it grows to over $61 billion by 2025. The largest annual increase appears between 2021 and 2022, mirroring the trend in total assets. This growth trend stabilizes somewhat in the following years but remains consistently positive.

Reported financial leverage

The reported financial leverage ratio remains relatively stable over the period, fluctuating slightly between 1.60 and 1.69. The ratio starts at 1.63 in 2020, dips marginally to 1.6 in 2021, and peaks at 1.69 in 2023 before slightly declining again. This indicates that the company’s relative level of debt to equity remains steady despite growth in absolute asset and equity values.

Adjusted total assets

Adjusted total assets track closely with the reported total assets, following a similar upward trend. Starting at $55.1 billion in 2020, they rise to nearly $99.4 billion by 2025. The adjusted figures consistently measure slightly lower than the reported total assets, but the gap narrows over time, suggesting improved asset quality or revaluation effects.

Adjusted stockholders’ equity

The adjusted stockholders' equity increases significantly, from around $44.7 billion in 2020 to nearly $78.7 billion in 2025. This represents a faster growth rate relative to the reported equity figures, indicating possibly the impact of adjustments that recognize additional equity components or deferred matters.

Adjusted financial leverage

The adjusted financial leverage ratio is lower than the reported leverage across all years, starting and ending at approximately 1.23 and 1.26 respectively. It shows a slight increase to 1.30 in 2022 and 2023 before gradually declining again. This lower leverage suggests that underlying financial risk might be less pronounced when adjustments are taken into account, providing a more conservative evaluation of financial structure.

The financial data reveals several significant trends over the analyzed periods. Both net income and revenues demonstrate an overall upward trajectory, albeit with notable fluctuations in certain years.

Net Income

Net income figures exhibit substantial variability. Starting from a relatively low base in early 2020, there is a sharp increase in 2021. However, the following two years show a marked decrease, particularly in 2023. The last two years reflect a strong recovery with net income reaching new highs by 2025.

Revenues

Revenues show consistent growth year-over-year, increasing steadily from 2020 through 2025. This trend indicates sustained business expansion and improved sales performance over the medium term.

Reported Net Profit Margin

The reported net profit margin fluctuates significantly. Initially very low in 2020, it rises sharply in 2021 before declining to very low levels again in 2023. Substantial improvement follows, with margins increasing notably in the last two years, though still remaining below the peak reached in early 2021.

Adjusted Net Income

Adjusted net income tends to be higher than reported net income, reflecting potential adjustments for non-recurring items or accounting variations. After a strong start in 2020 and 2021, there is a decline through 2023, followed by a robust recovery and new highs by 2025, mirroring the trend in reported net income but with less volatility.

Adjusted Revenues

Adjusted revenues grow steadily, closely following the pattern of reported revenues and reinforcing the general trend of expanding business volume over time.

Adjusted Net Profit Margin

Adjusted net profit margin demonstrates a smoother pattern than the reported margin. It peaks in 2021, declines in the ensuing years with the lowest point in 2023, and subsequently shows consistent recovery, reaching relatively high profitability levels by 2025.

Overall, the data indicates a growth trajectory in sales, with profitability exhibiting more volatility. The recovery observed in the latter years suggests successful strategies in improving margins and net income after weaker periods. Adjusted figures provide a clearer view of underlying profitability by mitigating the impact of irregular items.

The financial performance exhibits notable fluctuations over the observed periods, with evident volatility in net income figures. Net income experienced a substantial increase from 126 million USD in early 2020 to 4072 million USD in 2021, followed by a decline to 1444 million USD in 2022. A further significant drop to 208 million USD occurred in 2023, before exceptionally rising again to 4136 million USD in 2024 and reaching 6197 million USD in 2025. This pattern indicates a high degree of variability in reported profitability.

Stockholders’ equity shows a steady upward trajectory throughout the periods. It increased from 33,885 million USD in 2020 to 61,173 million USD by 2025, reflecting consistent growth and possibly reinvested earnings contributing to the equity base.

The reported return on equity (ROE) mirrors the fluctuations noted in net income. ROE increased sharply from 0.37% in 2020 to a peak of 9.81% in 2021, then decreased to 2.48% in 2022 and further to 0.36% in 2023. It rebounded to 6.93% in 2024 and improved further to 10.13% in 2025, illustrating that earnings generation relative to equity was inconsistent but showed recovery in the last two periods.

Adjusted net income data, which likely accounts for non-recurring or extraordinary items, presents a less volatile but still fluctuating pattern. Starting at 2216 million USD in 2020, it increased to 4278 million USD in 2021, peaked slightly lower at 4087 million USD in 2022, then dropped significantly to 2121 million USD in 2023. Afterwards, it rose again to 4583 million USD in 2024 and reached the highest value of 6865 million USD in 2025. This trend implies operational profitability was variable but generally improved towards the end of the period.

Adjusted stockholders’ equity also increased steadily from 44,699 million USD in 2020 to 78,729 million USD in 2025, indicating a consistent strengthening of the company’s adjusted equity position.

The adjusted ROE, reflecting returns based on adjusted earnings and equity, follows a similar fluctuating trajectory to adjusted net income. It started at 4.96% in 2020, climbed to 8.15% in 2021, declined to 5.64% in 2022 and further to 2.84% in 2023. It then increased to 6.00% in 2024 and ended at 8.72% in 2025. This pattern points to a variable but recuperating profitability when adjusted for certain factors.

Summary

The analysis reveals considerable volatility in reported and adjusted net income and return on equity metrics, with significant dips in the 2022-2023 timeframe followed by recovery in the last two reported years. Conversely, both reported and adjusted stockholders’ equity showed consistent growth, signifying strength in the equity base. The fluctuations in ROE align closely with income variations, indicating that profit generation relative to equity was influenced by the underlying earnings volatility. Adjusted metrics suggest variability in operational performance but an overall improving trend by the end of the timeline.

Net Income

Net income exhibited significant volatility over the analyzed period. From a low of 126 million USD in 2020, it sharply increased to 4,072 million USD in 2021, followed by a decline to 1,444 million USD in 2022. The figure then dropped further to 208 million USD in 2023 before rebounding strongly to 4,136 million USD in 2024 and reaching the highest value of 6,197 million USD in 2025.

Total Assets

Total assets showed a steady upward trend throughout the period, increasing from 55,126 million USD in 2020 to 102,928 million USD in 2025. Growth was consistent year-over-year, with no substantial declines or reversals observed.

Reported Return on Assets (ROA)

The reported ROA mirrored the fluctuations seen in net income, beginning very low at 0.23% in 2020, peaking at 6.14% in 2021, then declining to 1.52% in 2022 and further to 0.21% in 2023. It modestly recovered to 4.14% in 2024 and increased further to 6.02% in 2025, indicating variable profitability relative to assets.

Adjusted Net Income

Adjusted net income demonstrated overall growth with some period fluctuations. It started at 2,216 million USD in 2020, nearly doubled to 4,278 million USD in 2021, then decreased to 4,087 million USD in 2022 and sharply declined to 2,121 million USD in 2023. Recovery was noted in 2024 with 4,583 million USD and continued growth to 6,865 million USD in 2025.

Adjusted Total Assets

Adjusted total assets increased steadily but at a slightly slower pace compared to the reported total assets. Starting at 55,126 million USD in 2020, the figure rose to 99,439 million USD in 2025, with consistent growth and no years showing a decline.

Adjusted Return on Assets (ROA)

The adjusted ROA was more stable compared to the reported ROA, beginning at 4.02% in 2020 and increasing to 6.61% in 2021, then decreasing to 4.35% in 2022. It dropped to a lower point of 2.18% in 2023, followed by a recovery to 4.7% in 2024 and a further increase to 6.9% in 2025. This trend indicates relatively consistent profitability after adjustments, with improvements towards the end of the period.

Summary of Trends

Overall, the financial data reveals strong asset growth accompanied by volatile net income and profitability measures. The adjusted figures suggest less pronounced fluctuations in income and return metrics, highlighting the influence of adjustments on financial performance assessment. The upward trend in adjusted ROA towards the final years signals improving efficiency in asset utilization. The disparities between reported and adjusted income and ROA point to potential one-time items or accounting impacts affecting the reported results.