Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
salesforce.com inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | salesforce.com inc.’s debt to equity ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 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.com inc.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | salesforce.com inc.’s debt to capital ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 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.com inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | salesforce.com inc.’s debt to assets ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | salesforce.com inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | salesforce.com inc.’s financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | salesforce.com inc.’s interest coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | salesforce.com inc.’s fixed charge coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Debt to Equity
salesforce.com inc., debt to equity calculation, comparison to benchmarks
| Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of debt | 4 | 3 | 1,025 | — | — | — | |
| Noncurrent debt, excluding current portion | 2,673 | 3,173 | 695 | 2,008 | 1,294 | 1,371 | |
| Total debt | 2,677 | 3,176 | 1,719 | 2,008 | 1,294 | 1,371 | |
| Stockholders’ equity | 33,885 | 15,605 | 9,388 | 7,500 | 5,003 | 3,975 | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.08 | 0.20 | 0.18 | 0.27 | 0.26 | 0.34 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Adobe Inc. | — | 0.39 | 0.44 | 0.22 | 0.26 | 0.27 | |
| Alphabet Inc. | — | 0.02 | 0.02 | 0.03 | 0.03 | 0.04 | |
| Autodesk Inc. | — | — | — | 2.03 | 0.92 | 0.34 | |
| Facebook Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | — | 3.02 | 2.73 | 2.66 | 2.31 | 2.80 | |
| Intuit Inc. | 0.66 | 0.12 | 0.19 | 0.36 | 0.86 | 0.21 | |
| Microsoft Corp. | 0.54 | 0.71 | 0.92 | 1.19 | 0.75 | 0.44 | |
| Oracle Corp. | 5.93 | 2.58 | 1.33 | 1.08 | 0.93 | 0.86 | |
| ServiceNow Inc. | — | 0.33 | 0.60 | 2.01 | 1.31 | 0.84 | |
| Debt to Equity, Sector | |||||||
| Software & Computer Services | — | 0.43 | 0.46 | 0.52 | 0.43 | 0.39 | |
| Debt to Equity, Industry | |||||||
| Technology | — | 0.56 | 0.56 | 0.59 | 0.48 | 0.43 | |
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 2020 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 2,677 ÷ 33,885 = 0.08
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.com inc.’s debt to equity ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Debt to Equity (including Operating Lease Liability)
salesforce.com inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of debt | 4 | 3 | 1,025 | — | — | — | |
| Noncurrent debt, excluding current portion | 2,673 | 3,173 | 695 | 2,008 | 1,294 | 1,371 | |
| Total debt | 2,677 | 3,176 | 1,719 | 2,008 | 1,294 | 1,371 | |
| Operating lease liabilities, current | 750 | — | — | — | — | — | |
| Noncurrent operating lease liabilities | 2,445 | — | — | — | — | — | |
| Total debt (including operating lease liability) | 5,872 | 3,176 | 1,719 | 2,008 | 1,294 | 1,371 | |
| Stockholders’ equity | 33,885 | 15,605 | 9,388 | 7,500 | 5,003 | 3,975 | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.17 | 0.20 | 0.18 | 0.27 | 0.26 | 0.34 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Alphabet Inc. | — | 0.08 | 0.02 | 0.03 | 0.03 | 0.04 | |
| Autodesk Inc. | — | — | — | 2.03 | 0.92 | 0.34 | |
| Facebook Inc. | — | 0.11 | 0.00 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | — | 3.27 | 2.73 | 2.66 | 2.31 | 2.80 | |
| Intuit Inc. | 0.71 | 0.12 | 0.19 | 0.36 | 0.86 | 0.21 | |
| Microsoft Corp. | 0.61 | 0.78 | 1.01 | 1.19 | 0.75 | 0.44 | |
| Oracle Corp. | 6.10 | 2.58 | 1.33 | 1.08 | 0.93 | 0.86 | |
| ServiceNow Inc. | — | 0.53 | 0.60 | 2.01 | 1.31 | 0.84 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Computer Services | — | 0.50 | 0.47 | 0.52 | 0.43 | 0.39 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Technology | — | 0.61 | 0.57 | 0.59 | 0.48 | 0.43 | |
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 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 5,872 ÷ 33,885 = 0.17
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.com inc.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Debt to Capital
salesforce.com inc., debt to capital calculation, comparison to benchmarks
| Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of debt | 4 | 3 | 1,025 | — | — | — | |
| Noncurrent debt, excluding current portion | 2,673 | 3,173 | 695 | 2,008 | 1,294 | 1,371 | |
| Total debt | 2,677 | 3,176 | 1,719 | 2,008 | 1,294 | 1,371 | |
| Stockholders’ equity | 33,885 | 15,605 | 9,388 | 7,500 | 5,003 | 3,975 | |
| Total capital | 36,562 | 18,781 | 11,108 | 9,509 | 6,297 | 5,346 | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.07 | 0.17 | 0.15 | 0.21 | 0.21 | 0.26 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Adobe Inc. | — | 0.28 | 0.31 | 0.18 | 0.20 | 0.21 | |
| Alphabet Inc. | — | 0.02 | 0.02 | 0.03 | 0.03 | 0.04 | |
| Autodesk Inc. | 1.07 | 1.11 | 1.19 | 0.67 | 0.48 | 0.25 | |
| Facebook Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | — | 0.75 | 0.73 | 0.73 | 0.70 | 0.74 | |
| Intuit Inc. | 0.40 | 0.10 | 0.16 | 0.26 | 0.46 | 0.18 | |
| Microsoft Corp. | 0.35 | 0.41 | 0.48 | 0.54 | 0.43 | 0.31 | |
| Oracle Corp. | 0.86 | 0.72 | 0.57 | 0.52 | 0.48 | 0.46 | |
| ServiceNow Inc. | — | 0.25 | 0.37 | 0.67 | 0.57 | 0.46 | |
| Debt to Capital, Sector | |||||||
| Software & Computer Services | — | 0.30 | 0.31 | 0.34 | 0.30 | 0.28 | |
| Debt to Capital, Industry | |||||||
| Technology | — | 0.36 | 0.36 | 0.37 | 0.33 | 0.30 | |
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 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 2,677 ÷ 36,562 = 0.07
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.com inc.’s debt to capital ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Debt to Capital (including Operating Lease Liability)
salesforce.com inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of debt | 4 | 3 | 1,025 | — | — | — | |
| Noncurrent debt, excluding current portion | 2,673 | 3,173 | 695 | 2,008 | 1,294 | 1,371 | |
| Total debt | 2,677 | 3,176 | 1,719 | 2,008 | 1,294 | 1,371 | |
| Operating lease liabilities, current | 750 | — | — | — | — | — | |
| Noncurrent operating lease liabilities | 2,445 | — | — | — | — | — | |
| Total debt (including operating lease liability) | 5,872 | 3,176 | 1,719 | 2,008 | 1,294 | 1,371 | |
| Stockholders’ equity | 33,885 | 15,605 | 9,388 | 7,500 | 5,003 | 3,975 | |
| Total capital (including operating lease liability) | 39,757 | 18,781 | 11,108 | 9,509 | 6,297 | 5,346 | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.15 | 0.17 | 0.15 | 0.21 | 0.21 | 0.26 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Alphabet Inc. | — | 0.07 | 0.02 | 0.03 | 0.03 | 0.04 | |
| Autodesk Inc. | 1.06 | 1.11 | 1.19 | 0.67 | 0.48 | 0.25 | |
| Facebook Inc. | — | 0.10 | 0.00 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | — | 0.77 | 0.73 | 0.73 | 0.70 | 0.74 | |
| Intuit Inc. | 0.42 | 0.10 | 0.16 | 0.26 | 0.46 | 0.18 | |
| Microsoft Corp. | 0.38 | 0.44 | 0.50 | 0.54 | 0.43 | 0.31 | |
| Oracle Corp. | 0.86 | 0.72 | 0.57 | 0.52 | 0.48 | 0.46 | |
| ServiceNow Inc. | — | 0.35 | 0.37 | 0.67 | 0.57 | 0.46 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Computer Services | — | 0.34 | 0.32 | 0.34 | 0.30 | 0.28 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Technology | — | 0.38 | 0.36 | 0.37 | 0.33 | 0.30 | |
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 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,872 ÷ 39,757 = 0.15
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.com inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Debt to Assets
salesforce.com inc., debt to assets calculation, comparison to benchmarks
| Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of debt | 4 | 3 | 1,025 | — | — | — | |
| Noncurrent debt, excluding current portion | 2,673 | 3,173 | 695 | 2,008 | 1,294 | 1,371 | |
| Total debt | 2,677 | 3,176 | 1,719 | 2,008 | 1,294 | 1,371 | |
| Total assets | 55,126 | 30,737 | 21,010 | 17,585 | 12,771 | 10,693 | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.05 | 0.10 | 0.08 | 0.11 | 0.10 | 0.13 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Adobe Inc. | — | 0.20 | 0.22 | 0.13 | 0.15 | 0.16 | |
| Alphabet Inc. | — | 0.02 | 0.02 | 0.02 | 0.02 | 0.04 | |
| Autodesk Inc. | 0.34 | 0.44 | 0.39 | 0.31 | 0.27 | 0.15 | |
| Facebook Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | — | 0.41 | 0.37 | 0.37 | 0.36 | 0.36 | |
| Intuit Inc. | 0.31 | 0.07 | 0.08 | 0.12 | 0.24 | 0.10 | |
| Microsoft Corp. | 0.21 | 0.25 | 0.29 | 0.36 | 0.28 | 0.20 | |
| Oracle Corp. | 0.62 | 0.52 | 0.44 | 0.43 | 0.39 | 0.38 | |
| ServiceNow Inc. | — | 0.12 | 0.17 | 0.35 | 0.25 | 0.26 | |
| Debt to Assets, Sector | |||||||
| Software & Computer Services | — | 0.20 | 0.22 | 0.24 | 0.22 | 0.20 | |
| Debt to Assets, Industry | |||||||
| Technology | — | 0.24 | 0.25 | 0.27 | 0.24 | 0.22 | |
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 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 2,677 ÷ 55,126 = 0.05
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.com inc.’s debt to assets ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Debt to Assets (including Operating Lease Liability)
salesforce.com inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of debt | 4 | 3 | 1,025 | — | — | — | |
| Noncurrent debt, excluding current portion | 2,673 | 3,173 | 695 | 2,008 | 1,294 | 1,371 | |
| Total debt | 2,677 | 3,176 | 1,719 | 2,008 | 1,294 | 1,371 | |
| Operating lease liabilities, current | 750 | — | — | — | — | — | |
| Noncurrent operating lease liabilities | 2,445 | — | — | — | — | — | |
| Total debt (including operating lease liability) | 5,872 | 3,176 | 1,719 | 2,008 | 1,294 | 1,371 | |
| Total assets | 55,126 | 30,737 | 21,010 | 17,585 | 12,771 | 10,693 | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.11 | 0.10 | 0.08 | 0.11 | 0.10 | 0.13 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Alphabet Inc. | — | 0.06 | 0.02 | 0.02 | 0.02 | 0.04 | |
| Autodesk Inc. | 0.41 | 0.44 | 0.39 | 0.31 | 0.27 | 0.15 | |
| Facebook Inc. | — | 0.08 | 0.00 | 0.00 | 0.00 | 0.00 | |
| International Business Machines Corp. | — | 0.45 | 0.37 | 0.37 | 0.36 | 0.36 | |
| Intuit Inc. | 0.33 | 0.07 | 0.08 | 0.12 | 0.24 | 0.10 | |
| Microsoft Corp. | 0.24 | 0.28 | 0.32 | 0.36 | 0.28 | 0.20 | |
| Oracle Corp. | 0.64 | 0.52 | 0.44 | 0.43 | 0.39 | 0.38 | |
| ServiceNow Inc. | — | 0.19 | 0.17 | 0.35 | 0.25 | 0.26 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Computer Services | — | 0.24 | 0.22 | 0.24 | 0.22 | 0.20 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Technology | — | 0.26 | 0.25 | 0.27 | 0.24 | 0.22 | |
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 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,872 ÷ 55,126 = 0.11
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.com inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020. |
Financial Leverage
salesforce.com inc., financial leverage calculation, comparison to benchmarks
| Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 55,126 | 30,737 | 21,010 | 17,585 | 12,771 | 10,693 | |
| Stockholders’ equity | 33,885 | 15,605 | 9,388 | 7,500 | 5,003 | 3,975 | |
| Solvency Ratio | |||||||
| Financial leverage1 | 1.63 | 1.97 | 2.24 | 2.34 | 2.55 | 2.69 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Adobe Inc. | — | 1.97 | 2.00 | 1.72 | 1.71 | 1.67 | |
| Alphabet Inc. | — | 1.37 | 1.31 | 1.29 | 1.20 | 1.23 | |
| Autodesk Inc. | — | — | — | 6.54 | 3.41 | 2.21 | |
| Facebook Inc. | — | 1.32 | 1.16 | 1.14 | 1.10 | 1.12 | |
| International Business Machines Corp. | — | 7.30 | 7.35 | 7.12 | 6.44 | 7.75 | |
| Intuit Inc. | 2.14 | 1.68 | 2.20 | 3.00 | 3.66 | 2.13 | |
| Microsoft Corp. | 2.55 | 2.80 | 3.13 | 3.33 | 2.69 | 2.20 | |
| Oracle Corp. | 9.56 | 4.99 | 3.00 | 2.51 | 2.37 | 2.28 | |
| ServiceNow Inc. | — | 2.83 | 3.49 | 5.82 | 5.26 | 3.19 | |
| Financial Leverage, Sector | |||||||
| Software & Computer Services | — | 2.14 | 2.10 | 2.13 | 1.97 | 1.94 | |
| Financial Leverage, Industry | |||||||
| Technology | — | 2.32 | 2.27 | 2.20 | 2.04 | 1.99 | |
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 2020 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 55,126 ÷ 33,885 = 1.63
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.com inc.’s financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020. |
Interest Coverage
salesforce.com inc., interest coverage calculation, comparison to benchmarks
| 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 income (loss) | 126 | 1,110 | 127 | 180 | (47) | (263) | |
| Add: Income tax expense | 580 | (127) | 75 | (154) | 112 | 50 | |
| Add: Interest expense | 131 | 154 | 87 | 89 | 72 | 73 | |
| Earnings before interest and tax (EBIT) | 837 | 1,137 | 289 | 114 | 137 | (140) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 6.39 | 7.38 | 3.32 | 1.29 | 1.89 | -1.91 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Adobe Inc. | — | 21.38 | 32.31 | 29.73 | 21.37 | 14.61 | |
| Alphabet Inc. | — | 397.25 | 307.25 | 250.48 | 195.76 | 189.95 | |
| Autodesk Inc. | 6.46 | 0.18 | -15.15 | -16.64 | 0.40 | 7.29 | |
| Facebook Inc. | — | 1,241.60 | 2,818.89 | 3,433.33 | 1,252.80 | 270.30 | |
| International Business Machines Corp. | — | 8.58 | 16.71 | 19.56 | 20.60 | 35.09 | |
| Intuit Inc. | 158.00 | 126.40 | 76.15 | 45.10 | 35.37 | 27.37 | |
| Microsoft Corp. | 21.47 | 17.27 | 14.35 | 11.42 | 16.89 | 24.70 | |
| Oracle Corp. | 7.13 | 6.97 | 7.43 | 7.47 | 8.88 | 12.33 | |
| ServiceNow Inc. | — | 3.02 | 0.26 | -1.79 | -12.52 | -5.21 | |
| Interest Coverage, Sector | |||||||
| Software & Computer Services | — | 21.60 | 22.24 | 20.26 | 23.20 | 28.32 | |
| Interest Coverage, Industry | |||||||
| Technology | — | 19.75 | 21.76 | 20.41 | 22.53 | 35.53 | |
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 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 837 ÷ 131 = 6.39
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.com inc.’s interest coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
Fixed Charge Coverage
salesforce.com inc., fixed charge coverage calculation, comparison to benchmarks
| 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 income (loss) | 126 | 1,110 | 127 | 180 | (47) | (263) | |
| Add: Income tax expense | 580 | (127) | 75 | (154) | 112 | 50 | |
| Add: Interest expense | 131 | 154 | 87 | 89 | 72 | 73 | |
| Earnings before interest and tax (EBIT) | 837 | 1,137 | 289 | 114 | 137 | (140) | |
| Add: Operating lease cost | 913 | 365 | 285 | 226 | 175 | 163 | |
| Earnings before fixed charges and tax | 1,750 | 1,502 | 574 | 340 | 311 | 23 | |
| Interest expense | 131 | 154 | 87 | 89 | 72 | 73 | |
| Operating lease cost | 913 | 365 | 285 | 226 | 175 | 163 | |
| Fixed charges | 1,044 | 519 | 372 | 315 | 247 | 236 | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 1.68 | 2.89 | 1.54 | 1.08 | 1.26 | 0.10 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Adobe Inc. | — | 10.78 | 13.34 | 12.26 | 9.79 | 6.56 | |
| Alphabet Inc. | — | 17.10 | 25.69 | 23.49 | 24.65 | 12.49 | |
| Autodesk Inc. | 3.09 | 0.62 | -5.16 | -4.51 | 0.78 | 2.22 | |
| Facebook Inc. | — | 22.41 | 40.75 | 56.81 | 45.87 | 31.36 | |
| International Business Machines Corp. | — | 4.41 | 5.26 | 5.69 | 6.77 | 9.21 | |
| Intuit Inc. | 27.48 | 34.00 | 26.91 | 22.03 | 17.94 | 9.28 | |
| Microsoft Corp. | 12.44 | 10.94 | 9.45 | 7.57 | 9.81 | 11.46 | |
| Oracle Corp. | 5.68 | 5.50 | 6.38 | 6.39 | 7.44 | 9.76 | |
| ServiceNow Inc. | — | 1.69 | 0.61 | -0.55 | -5.67 | -2.64 | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Computer Services | — | 10.20 | 11.16 | 10.26 | 11.17 | 10.86 | |
| Fixed Charge Coverage, Industry | |||||||
| Technology | — | 11.68 | 13.28 | 12.39 | 13.10 | 16.53 | |
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 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,750 ÷ 1,044 = 1.68
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.com inc.’s fixed charge coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |