Salesforce Inc. (NYSE:CRM)

Return on Assets (ROA)

The Return on Assets demonstrates a improving trend over the entire period. Initial values in early 2020 showed a negative return at -0.31%, which then sharply improved to above 6% by the start of 2021. Following this peak, there was a gradual decline through mid-2022 to a low near 0.21%. Subsequently, the ROA steadily increased again, reaching a high of 6.83% by mid-2025. This pattern suggests volatility with a strong recovery and consistent upward momentum toward the end of the period.

Financial Leverage

Financial leverage remained relatively stable throughout the examined timeframe, fluctuating between 1.47 and 1.69. The ratio hovered mostly around values of approximately 1.5 to 1.6, indicating modest use of debt relative to equity. No drastic changes or trends are apparent, suggesting a consistent capital structure strategy.

Return on Equity (ROE)

The Return on Equity showed a notable recovery pattern parallel to ROA. Starting with a negative return of -0.48% at the beginning of 2020, ROE quickly climbed to near 10.44% in early 2021. This was followed by a steady decline to a low point around 0.36% by early 2023. After this trough, ROE exhibited a strong upward trajectory, reaching a peak of 10.86% by mid-2025. This indicates enhanced profitability and efficiency in generating shareholder returns over the latter periods.

Overall Insights

The data indicates an initial period of significant profitability improvement in 2020 and early 2021, followed by a notable dip lasting into early 2023 across both ROA and ROE metrics. Post-2023, both profitability measures improve steadily, reflecting effective operational or strategic adjustments. Financial leverage remained nearly constant, implying that changes in returns are primarily driven by operational performance rather than changes in financial risk. The correlation between ROA and ROE movements suggests stable leverage effects with improving asset efficiency contributing directly to equity returns.

The analysis of the quarterly financial metrics reveals several notable trends and fluctuations over the observed periods, highlighting varying operational efficiency and profitability dynamics.

Net Profit Margin

The net profit margin demonstrated a significant recovery from a negative margin of -0.92% in April 2020 to a peak of approximately 19.87% by April 2021. This was followed by a pronounced decline throughout late 2021 and into early 2023, reaching lows near 0.66%. However, a clear upward trajectory is observed beginning mid-2023, climbing steadily to around 16.87% by July 2025. This pattern indicates an initial period of strong profitability growth, a subsequent contraction, and a strong recovery phase in recent quarters.

Asset Turnover

Asset turnover ratios exhibited relative stability with minor fluctuations around the 0.3 to 0.4 range. Starting at 0.34 in April 2020, there was a slight decline towards early 2021, dropping to approximately 0.27 in mid-2021, followed by a gradual increase reaching 0.4 by mid-2024 and maintaining near that level thereafter. This suggests a modest improvement in the efficiency of utilizing assets to generate revenue over the long term, particularly after mid-2021.

Financial Leverage

The financial leverage ratio remained relatively consistent, fluctuating moderately between 1.47 and 1.69. The ratio started at 1.55 in April 2020 and experienced minor ups and downs, peaking intermittently around 1.67 to 1.69 in various periods between early 2022 and 2025. This indicates stable use of debt relative to equity, with no dramatic changes in the capital structure during the period.

Return on Equity (ROE)

ROE followed a trend aligned with net profit margin movements, starting with a negative return in early 2020 (-0.48%) and improving gradually up to approximately 10.44% by April 2021. Similar to the net profit margin, ROE experienced a decline between mid-2021 and early 2023, reaching a trough near 0.36%. Subsequently, it recovered steadily, reaching around 10.86% by July 2025. This indicates fluctuations in shareholder profitability with periods of decline followed by sustained recovery and growth.

In summary, the financial data depicts a scenario of initial profit growth followed by a downturn and then a recovery phase across key profitability and efficiency indicators. Asset utilization became slightly more effective over time, while the leverage remained stable, suggesting controlled financial risk. The trends in ROE and net profit margin reflect cyclical changes in profitability, highlighting the company’s ability to restore returns to equity holders in the later periods.

The analysis of the quarterly financial ratios reveals several key trends spanning multiple years.

Net Profit Margin (%)

The net profit margin exhibited a negative value initially, followed by a sharp improvement peaking around January 2021 near 19.16%. Subsequently, there was a notable decline through 2021 and into early 2023, reaching a low point of 0.66% in January 2023. Beginning in mid-2023, margin figures show a consistent recovery, climbing steadily to reach values above 16% by early 2025. The data implies a cyclical pattern with a strong recovery phase after a mid-cycle dip, indicating renewed profitability efficiency in recent quarters.

Asset Turnover (ratio)

The asset turnover ratio remained relatively stable in the early 2020 period, fluctuating slightly around 0.34. There was a decline in mid to late 2021 to approximately 0.27-0.29, suggesting reduced efficiency in asset usage during that time. From early 2022 onward, the ratio shows a gradual improvement, increasing consistently and reaching about 0.40 by early 2025. This indicates enhanced utilization of assets to generate revenue over the long term.

Return on Assets (ROA) (%)

Return on assets began negative at the start of the period but quickly improved, peaking near 6.85% in April 2021. Following this peak, ROA declined through 2021 and early 2023, mirroring the net profit margin trend and reaching a low of 0.21% in January 2023. A recovery trend commenced from mid-2023, with ROA increasing steadily to approximately 6.83% by early 2025. This trajectory reflects improved profitability relative to the asset base, recovering after a period of weak returns.

Overall, the data indicates that the company experienced strong profitability growth during 2020 through early 2021, followed by a period of decline over the next approximately 18 months. Starting mid-2023, a clear resurgence is evident, with upwards trends in profitability and asset efficiency ratios pointing to improved operational performance and financial health into 2025.