Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Salesforce Inc., solvency ratios

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Debt Ratios
Debt to equity 0.17 0.20 0.19 0.07 0.09 0.22
Debt to equity (including operating lease liability) 0.23 0.25 0.25 0.15 0.18 0.22
Debt to capital 0.15 0.16 0.16 0.06 0.08 0.18
Debt to capital (including operating lease liability) 0.19 0.20 0.20 0.13 0.16 0.18
Debt to assets 0.10 0.12 0.12 0.04 0.06 0.11
Debt to assets (including operating lease liability) 0.14 0.15 0.15 0.10 0.11 0.11
Financial leverage 1.67 1.69 1.64 1.60 1.63 1.97
Coverage Ratios
Interest coverage 20.49 3.30 8.09 24.28 7.42 8.80
Fixed charge coverage 4.82 1.52 2.18 2.94 1.69 3.00

Based on: 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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Salesforce Inc. debt to equity ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Salesforce Inc. debt to equity ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Salesforce Inc. debt to capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Salesforce Inc. debt to capital ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Salesforce Inc. debt to assets ratio improved from 2022 to 2023 and from 2023 to 2024.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Salesforce Inc. debt to assets ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Salesforce Inc. financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Salesforce Inc. interest coverage ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Salesforce Inc. fixed charge coverage ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Debt to Equity

Salesforce Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Finance lease liabilities, current 372 257 114 35 53
Debt, current 999 1,182 4 4 4 3
Noncurrent debt, excluding current portion 8,427 9,419 10,592 2,673 2,673 3,173
Noncurrent finance lease liabilities 602 534 271 93 332
Capital lease obligations 191
Total debt 10,400 11,392 10,981 2,805 3,062 3,367
 
Stockholders’ equity 59,646 58,359 58,131 41,493 33,885 15,605
Solvency Ratio
Debt to equity1 0.17 0.20 0.19 0.07 0.09 0.22
Benchmarks
Debt to Equity, Competitors2
Accenture PLC 0.01 0.00 0.00 0.00 0.00
Adobe Inc. 0.22 0.29 0.28 0.31 0.39
International Business Machines Corp. 2.51 2.32 2.74 2.99 3.02
Intuit Inc. 0.35 0.42 0.21 0.66 0.12
Microsoft Corp. 0.31 0.39 0.50 0.62 0.77
Oracle Corp. 84.33 16.08 5.93 2.58
Palo Alto Networks Inc. 1.14 17.51 5.08 2.80 0.90
ServiceNow Inc. 0.20 0.30 0.43 0.58 0.33
Synopsys Inc. 0.00 0.00 0.02 0.03 0.03
Debt to Equity, Sector
Software & Services 0.65 0.72 0.84 0.97 1.06
Debt to Equity, Industry
Information Technology 0.63 0.67 0.77 0.88 0.88

Based on: 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).

1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 10,400 ÷ 59,646 = 0.17

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Salesforce Inc. debt to equity ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Debt to Equity (including Operating Lease Liability)

Salesforce Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Finance lease liabilities, current 372 257 114 35 53
Debt, current 999 1,182 4 4 4 3
Noncurrent debt, excluding current portion 8,427 9,419 10,592 2,673 2,673 3,173
Noncurrent finance lease liabilities 602 534 271 93 332
Capital lease obligations 191
Total debt 10,400 11,392 10,981 2,805 3,062 3,367
Operating lease liabilities, current 518 590 686 766 750
Noncurrent operating lease liabilities 2,644 2,897 2,703 2,842 2,445
Total debt (including operating lease liability) 13,562 14,879 14,370 6,413 6,257 3,367
 
Stockholders’ equity 59,646 58,359 58,131 41,493 33,885 15,605
Solvency Ratio
Debt to equity (including operating lease liability)1 0.23 0.25 0.25 0.15 0.18 0.22
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Accenture PLC 0.12 0.15 0.18 0.21 0.00
Adobe Inc. 0.25 0.33 0.32 0.35 0.39
International Business Machines Corp. 2.66 2.46 2.92 3.23 3.27
Intuit Inc. 0.39 0.46 0.25 0.71 0.12
Microsoft Corp. 0.39 0.47 0.58 0.69 0.84
Oracle Corp. 88.84 16.61 6.10 2.58
Palo Alto Networks Inc. 1.33 19.12 5.68 3.16 0.90
ServiceNow Inc. 0.30 0.44 0.60 0.75 0.53
Synopsys Inc. 0.11 0.12 0.13 0.14 0.03
Debt to Equity (including Operating Lease Liability), Sector
Software & Services 0.74 0.82 0.95 1.08 1.12
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.69 0.73 0.84 0.95 0.90

Based on: 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).

1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 13,562 ÷ 59,646 = 0.23

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Salesforce Inc. debt to equity ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Debt to Capital

Salesforce Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Finance lease liabilities, current 372 257 114 35 53
Debt, current 999 1,182 4 4 4 3
Noncurrent debt, excluding current portion 8,427 9,419 10,592 2,673 2,673 3,173
Noncurrent finance lease liabilities 602 534 271 93 332
Capital lease obligations 191
Total debt 10,400 11,392 10,981 2,805 3,062 3,367
Stockholders’ equity 59,646 58,359 58,131 41,493 33,885 15,605
Total capital 70,046 69,751 69,112 44,298 36,947 18,972
Solvency Ratio
Debt to capital1 0.15 0.16 0.16 0.06 0.08 0.18
Benchmarks
Debt to Capital, Competitors2
Accenture PLC 0.01 0.00 0.00 0.00 0.00
Adobe Inc. 0.18 0.23 0.22 0.24 0.28
International Business Machines Corp. 0.72 0.70 0.73 0.75 0.75
Intuit Inc. 0.26 0.30 0.17 0.40 0.10
Microsoft Corp. 0.24 0.28 0.33 0.38 0.43
Oracle Corp. 0.99 1.09 0.94 0.86 0.72
Palo Alto Networks Inc. 0.53 0.95 0.84 0.74 0.47
ServiceNow Inc. 0.16 0.23 0.30 0.37 0.25
Synopsys Inc. 0.00 0.00 0.02 0.03 0.03
Debt to Capital, Sector
Software & Services 0.39 0.42 0.46 0.49 0.51
Debt to Capital, Industry
Information Technology 0.39 0.40 0.43 0.47 0.47

Based on: 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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,400 ÷ 70,046 = 0.15

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Salesforce Inc. debt to capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Debt to Capital (including Operating Lease Liability)

Salesforce Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Finance lease liabilities, current 372 257 114 35 53
Debt, current 999 1,182 4 4 4 3
Noncurrent debt, excluding current portion 8,427 9,419 10,592 2,673 2,673 3,173
Noncurrent finance lease liabilities 602 534 271 93 332
Capital lease obligations 191
Total debt 10,400 11,392 10,981 2,805 3,062 3,367
Operating lease liabilities, current 518 590 686 766 750
Noncurrent operating lease liabilities 2,644 2,897 2,703 2,842 2,445
Total debt (including operating lease liability) 13,562 14,879 14,370 6,413 6,257 3,367
Stockholders’ equity 59,646 58,359 58,131 41,493 33,885 15,605
Total capital (including operating lease liability) 73,208 73,238 72,501 47,906 40,142 18,972
Solvency Ratio
Debt to capital (including operating lease liability)1 0.19 0.20 0.20 0.13 0.16 0.18
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Accenture PLC 0.11 0.13 0.15 0.17 0.00
Adobe Inc. 0.20 0.25 0.24 0.26 0.28
International Business Machines Corp. 0.73 0.71 0.74 0.76 0.77
Intuit Inc. 0.28 0.31 0.20 0.42 0.10
Microsoft Corp. 0.28 0.32 0.37 0.41 0.46
Oracle Corp. 0.99 1.08 0.94 0.86 0.72
Palo Alto Networks Inc. 0.57 0.95 0.85 0.76 0.47
ServiceNow Inc. 0.23 0.31 0.37 0.43 0.35
Synopsys Inc. 0.10 0.11 0.11 0.12 0.03
Debt to Capital (including Operating Lease Liability), Sector
Software & Services 0.43 0.45 0.49 0.52 0.53
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.41 0.42 0.46 0.49 0.47

Based on: 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).

1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,562 ÷ 73,208 = 0.19

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Salesforce Inc. debt to capital ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Debt to Assets

Salesforce Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Finance lease liabilities, current 372 257 114 35 53
Debt, current 999 1,182 4 4 4 3
Noncurrent debt, excluding current portion 8,427 9,419 10,592 2,673 2,673 3,173
Noncurrent finance lease liabilities 602 534 271 93 332
Capital lease obligations 191
Total debt 10,400 11,392 10,981 2,805 3,062 3,367
 
Total assets 99,823 98,849 95,209 66,301 55,126 30,737
Solvency Ratio
Debt to assets1 0.10 0.12 0.12 0.04 0.06 0.11
Benchmarks
Debt to Assets, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.12 0.15 0.15 0.17 0.20
International Business Machines Corp. 0.42 0.40 0.39 0.39 0.41
Intuit Inc. 0.22 0.25 0.13 0.31 0.07
Microsoft Corp. 0.16 0.18 0.21 0.24 0.27
Oracle Corp. 0.67 0.69 0.64 0.62 0.52
Palo Alto Networks Inc. 0.14 0.30 0.31 0.34 0.22
ServiceNow Inc. 0.09 0.11 0.15 0.19 0.12
Synopsys Inc. 0.00 0.00 0.01 0.02 0.02
Debt to Assets, Sector
Software & Services 0.25 0.26 0.28 0.31 0.32
Debt to Assets, Industry
Information Technology 0.26 0.26 0.28 0.30 0.31

Based on: 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).

1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 10,400 ÷ 99,823 = 0.10

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Salesforce Inc. debt to assets ratio improved from 2022 to 2023 and from 2023 to 2024.

Debt to Assets (including Operating Lease Liability)

Salesforce Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Finance lease liabilities, current 372 257 114 35 53
Debt, current 999 1,182 4 4 4 3
Noncurrent debt, excluding current portion 8,427 9,419 10,592 2,673 2,673 3,173
Noncurrent finance lease liabilities 602 534 271 93 332
Capital lease obligations 191
Total debt 10,400 11,392 10,981 2,805 3,062 3,367
Operating lease liabilities, current 518 590 686 766 750
Noncurrent operating lease liabilities 2,644 2,897 2,703 2,842 2,445
Total debt (including operating lease liability) 13,562 14,879 14,370 6,413 6,257 3,367
 
Total assets 99,823 98,849 95,209 66,301 55,126 30,737
Solvency Ratio
Debt to assets (including operating lease liability)1 0.14 0.15 0.15 0.10 0.11 0.11
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Accenture PLC 0.06 0.07 0.08 0.09 0.00
Adobe Inc. 0.14 0.17 0.17 0.19 0.20
International Business Machines Corp. 0.44 0.42 0.42 0.43 0.45
Intuit Inc. 0.24 0.27 0.16 0.33 0.07
Microsoft Corp. 0.19 0.21 0.25 0.27 0.30
Oracle Corp. 0.71 0.73 0.66 0.64 0.52
Palo Alto Networks Inc. 0.16 0.33 0.35 0.38 0.22
ServiceNow Inc. 0.13 0.17 0.21 0.24 0.19
Synopsys Inc. 0.07 0.07 0.08 0.08 0.02
Debt to Assets (including Operating Lease Liability), Sector
Software & Services 0.29 0.30 0.32 0.34 0.34
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.28 0.29 0.31 0.33 0.32

Based on: 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).

1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,562 ÷ 99,823 = 0.14

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Salesforce Inc. debt to assets ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024.

Financial Leverage

Salesforce Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Total assets 99,823 98,849 95,209 66,301 55,126 30,737
Stockholders’ equity 59,646 58,359 58,131 41,493 33,885 15,605
Solvency Ratio
Financial leverage1 1.67 1.69 1.64 1.60 1.63 1.97
Benchmarks
Financial Leverage, Competitors2
Accenture PLC 1.99 2.14 2.21 2.18 2.07
Adobe Inc. 1.80 1.93 1.84 1.83 1.97
International Business Machines Corp. 6.00 5.80 6.98 7.57 7.30
Intuit Inc. 1.61 1.69 1.57 2.14 1.68
Microsoft Corp. 2.00 2.19 2.35 2.55 2.80
Oracle Corp. 125.24 25.03 9.56 4.99
Palo Alto Networks Inc. 8.29 58.35 16.14 8.23 4.16
ServiceNow Inc. 2.28 2.64 2.92 3.07 2.83
Synopsys Inc. 1.68 1.71 1.65 1.64 1.57
Financial Leverage, Sector
Software & Services 2.56 2.74 2.98 3.17 3.32
Financial Leverage, Industry
Information Technology 2.44 2.56 2.72 2.90 2.86

Based on: 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).

1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 99,823 ÷ 59,646 = 1.67

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Salesforce Inc. financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Interest Coverage

Salesforce Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Net income 4,136 208 1,444 4,072 126 1,110
Add: Income tax expense 814 452 88 (1,511) 580 (127)
Add: Interest expense on debt 254 287 216 110 110 126
Earnings before interest and tax (EBIT) 5,204 947 1,748 2,671 816 1,109
Solvency Ratio
Interest coverage1 20.49 3.30 8.09 24.28 7.42 8.80
Benchmarks
Interest Coverage, Competitors2
Accenture PLC 193.31 195.34 131.46 205.84 273.26
Adobe Inc. 61.17 54.64 51.49 37.00 21.38
International Business Machines Corp. 6.42 1.97 5.20 4.62 8.58
Intuit Inc. 13.05 32.38 89.14 158.00 126.40
Microsoft Corp. 46.38 41.58 31.31 21.47 17.27
Oracle Corp. 3.65 3.84 6.28 7.13 6.97
Palo Alto Networks Inc. 21.82 -6.56 -1.85 -1.61 0.11
ServiceNow Inc. 43.00 15.78 9.89 5.56 3.02
Synopsys Inc. 1,106.08 657.96 240.38 125.16 47.79
Interest Coverage, Sector
Software & Services 17.58 18.31 17.65 14.44 13.06
Interest Coverage, Industry
Information Technology 18.93 24.78 22.87 16.68 15.79

Based on: 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).

1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,204 ÷ 254 = 20.49

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Salesforce Inc. interest coverage ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Fixed Charge Coverage

Salesforce Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Net income 4,136 208 1,444 4,072 126 1,110
Add: Income tax expense 814 452 88 (1,511) 580 (127)
Add: Interest expense on debt 254 287 216 110 110 126
Earnings before interest and tax (EBIT) 5,204 947 1,748 2,671 816 1,109
Add: Operating lease cost 1,041 986 1,080 1,208 913 365
Earnings before fixed charges and tax 6,245 1,933 2,828 3,879 1,729 1,474
 
Interest expense on debt 254 287 216 110 110 126
Operating lease cost 1,041 986 1,080 1,208 913 365
Fixed charges 1,295 1,273 1,296 1,318 1,023 491
Solvency Ratio
Fixed charge coverage1 4.82 1.52 2.18 2.94 1.69 3.00
Benchmarks
Fixed Charge Coverage, Competitors2
Accenture PLC 10.98 12.25 10.41 9.66 10.07
Adobe Inc. 30.56 26.79 25.59 18.77 10.78
International Business Machines Corp. 4.32 1.52 3.13 2.62 4.41
Intuit Inc. 9.03 14.67 25.58 27.48 34.00
Microsoft Corp. 19.44 19.50 16.90 12.44 10.94
Oracle Corp. 3.12 3.22 5.17 5.68 5.50
Palo Alto Networks Inc. 7.20 -1.18 -1.09 -0.52 0.41
ServiceNow Inc. 7.59 3.87 2.95 2.29 1.69
Synopsys Inc. 14.38 12.91 9.29 7.46 6.30
Fixed Charge Coverage, Sector
Software & Services 9.66 9.60 9.43 7.69 7.58
Fixed Charge Coverage, Industry
Information Technology 12.68 14.29 13.48 10.19 10.46

Based on: 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).

1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,245 ÷ 1,295 = 4.82

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Salesforce Inc. fixed charge coverage ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.