Salesforce Inc. (NYSE:CRM)

Current Ratio

The current ratio shows fluctuations over the analyzed period, starting at 1.08 in early 2020 and increasing to a peak of 1.23 in early 2021. Subsequently, it declined to 1.05 in 2022 and further edged down to 1.02 in 2023. The ratio then experienced a slight recovery, reaching 1.09 in 2024 before marginally decreasing to 1.06 in 2025. Overall, the current ratio maintains a level slightly above 1, suggesting a consistent but modest ability to cover short-term liabilities with current assets.

Quick Ratio

The quick ratio exhibits a pattern similar to the current ratio, beginning at 0.95 in 2020 and rising to 1.11 in 2021, indicating improved liquidity excluding inventory. Following this peak, it declined to 0.93 in 2022 and further to 0.90 in 2023. A modest recovery is observed in 2024 at 0.96, but it decreases slightly again to 0.93 in 2025. The quick ratio remains below 1 for most periods, implying a cautious liquidity position when considering only the most liquid current assets.

Cash Ratio

The cash ratio follows a decreasing trend with minor fluctuations, starting from 0.54 in 2020 and increasing somewhat to 0.67 in 2021. It then declines to 0.48 in both 2022 and 2023, sees a moderate rise to 0.53 in 2024, and falls slightly to 0.50 in 2025. This indicates variability in cash and cash equivalents relative to current liabilities but generally points towards a conservative cash holding relative to short-term obligations.

Current Assets

Current assets have shown a consistent upward trend over the analyzed periods. Starting at $15,963 million as of January 31, 2020, the figure increased steadily each year, reaching $29,727 million by January 31, 2025. This represents an overall growth of approximately 86% over the six-year span, indicating an improving liquidity position in terms of asset availability.

Current Liabilities

Current liabilities have also increased significantly during the same timeframe. Beginning at $14,845 million in January 2020, current liabilities rose each year, reaching $27,980 million by January 2025. The growth in liabilities is notable and nearly doubled, closely paralleling the increase in current assets.

Current Ratio

The current ratio has fluctuated within a relatively narrow range, showing some variability but maintaining values close to 1. This ratio started at 1.08 in January 2020, peaked at 1.23 in January 2021, and then trended downward to a low of 1.02 in January 2023. By January 2025, the ratio slightly recovered to 1.06. These patterns suggest that although current assets and liabilities have both increased significantly, their relative proportions have remained relatively stable, indicating a consistent capacity to cover short-term obligations.

Overall Analysis

Overall, both current assets and current liabilities have nearly doubled over the period, reflecting substantial growth in the scale of short-term financial activities. The current ratio remaining close to 1 throughout suggests that the company’s short-term liquidity position has been maintained, with assets reasonably aligned to meet current liabilities. The peak in the current ratio in 2021 followed by a decline might suggest temporary fluctuations in working capital management or operational changes influencing liquidity during these years. Despite these changes, the company appears to have preserved a balanced short-term financial structure.

Total quick assets

The total quick assets displayed a consistent growth trend over the observed periods. Starting at 14,121 million US dollars in January 2020, the figure rose steadily each year, reaching 25,977 million US dollars by January 2025. This represents an overall increase of approximately 84% during the period, signifying a strengthening of highly liquid assets available to meet short-term obligations.

Current liabilities

Current liabilities have also increased over the same timeframe, with values rising from 14,845 million US dollars in January 2020 to 27,980 million US dollars in January 2025. This growth rate, roughly 88%, slightly outpaces the increase in total quick assets, indicating an expanding short-term debt or obligations that the company is responsible for managing.

Quick ratio

The quick ratio fluctuated throughout the analyzed years, beginning at 0.95 in January 2020 and briefly improving to 1.11 in January 2021. However, subsequent years saw a decline below the 1.0 mark, with ratios of 0.93 in January 2022, 0.9 in January 2023, a minor recovery to 0.96 in January 2024, and a slight decrease to 0.93 in January 2025. This pattern suggests intermittent challenges in liquidity, as the ratio frequently remained below 1.0, implying that quick assets were not always sufficient to cover current liabilities fully.

Overall analysis

While both quick assets and current liabilities have grown significantly over the periods, current liabilities have increased at a slightly faster pace. The quick ratio trend highlights potential liquidity pressure points, particularly from 2022 onwards, as the ratio often dipped below 1.0. This indicates that despite the growth in liquid assets, the company may face periodic short-term liquidity constraints, warranting attention to managing current liabilities relative to readily available assets.

The financial data reveals several notable trends in liquidity and short-term financial stability over the examined periods.

Total cash assets

The total cash assets show an overall increasing trend from 2020 through 2024, growing from 7,947 million US dollars to 14,194 million US dollars. However, there is a slight decline in 2025, falling to 14,032 million US dollars. This growth in cash reserves over the majority of the periods suggests strengthening liquidity, although the minor decrease in the most recent period warrants attention.

Current liabilities

Current liabilities exhibit a consistent upward trend across all years, increasing from 14,845 million US dollars in 2020 to 27,980 million US dollars in 2025. This growth indicates a rising short-term obligation load, more than doubling throughout the observed periods.

Cash ratio

The cash ratio, which measures the ability to cover current liabilities with cash assets, shows fluctuation around values below one. It increased from 0.54 in 2020 to a peak of 0.67 in 2021, followed by a decline to 0.48 by 2022 and stabilizes around this figure through 2023. A moderate improvement to 0.53 occurs in 2024, with a slight decrease to 0.50 in 2025. Despite some variation, the ratio remains below 1.0 for all years, indicating that cash assets alone are insufficient to cover current liabilities fully.

In summary, while cash assets have generally increased, the more pronounced rise in current liabilities outpaces cash growth, leading to relatively stable but below 1.0 cash ratios. This suggests a persistent cautious liquidity position where cash holdings are inadequate to cover short-term obligations entirely, highlighting the importance of managing other current assets and liabilities efficiently.