Salesforce Inc. (NYSE:CRM)

Debt to Equity

The debt to equity ratio showed a downward trend from April 2019 to January 2021, decreasing from 0.19 to 0.06, indicating a reduction in reliance on debt relative to shareholders' equity. However, there was a sharp increase in July 2021 to 0.24, followed by a gradual decline and stabilization around 0.14-0.18 in subsequent periods up to July 2025, suggesting a moderate increase in leverage that stabilizes.

Debt to Equity (including Operating Lease Liability)

This ratio followed a similar pattern to the basic debt to equity measure but with consistently higher values, reflecting the inclusion of lease liabilities. It decreased from 0.38 in April 2019 to about 0.14-0.15 in early 2021, then spiked to 0.3 in July 2021. Following this peak, it declined steadily to approximately 0.18 by July 2025, indicating a gradual reduction in overall indebtedness including lease obligations after the mid-2021 increase.

Debt to Capital

The debt to capital ratio reflects total debt as a proportion of total capital. It decreased from 0.16 in April 2019 to around 0.06 by early 2021, indicating improving capital structure with less leverage. A noticeable increase occurred in July 2021, reaching 0.19, followed by a decline and stabilization in the 0.12-0.15 range through July 2025.

Debt to Capital (including Operating Lease Liability)

When including operating lease liabilities, the debt to capital ratio was higher but followed the same trend as the basic ratio. It dropped from 0.27 in April 2019 to around 0.13 in early 2021, with a jump to around 0.23 in July 2021. Post this peak, the ratio steadily decreased to about 0.15 by July 2025, pointing to lower leverage including lease obligations over time.

Debt to Assets

The debt to assets ratio was relatively low and decreased from 0.10 in April 2019 to about 0.04 by early 2021, showing a declining proportion of debt relative to total assets. There was a temporary increase to 0.15 in July 2021, then a fall and stabilization near 0.08-0.10 over the remaining periods.

Debt to Assets (including Operating Lease Liability)

This measure was higher than the basic debt to assets ratio but exhibited similar movements. It decreased from 0.19 in April 2019 to roughly 0.09 by early 2021, rose to 0.19 again in July 2021, and then steadily declined to around 0.12 by July 2025, indicating a reduction in total debt obligations relative to assets including lease liabilities.

Financial Leverage

Financial leverage ratios fluctuated moderately over the entire period, starting at 2.02 in April 2019 and declining to a low of 1.47 in October 2020. The ratio then reflected some volatility, including increases to 1.69 in January 2023 and 1.68 in January 2025. Overall, the financial leverage remained in a relatively narrow band around 1.5 to 1.7 after an initial reduction, suggesting a consistent level of equity financing relative to assets.

The financial data reveals several notable trends in the company's capital structure over the observed periods.

Total Debt

The total debt showed a generally declining trend starting from 3,177 million USD in April 2019, decreasing steadily to a low of 2,676 million USD by April 2021. Thereafter, a sharp increase is observed reaching 13,270 million USD in July 2021, followed by fluctuations with a gradual decline to approximately 8,436 million USD by July 2025. This pattern indicates a significant debt issuance around mid-2021, followed by ongoing repayments or restructuring.

Stockholders’ Equity

Stockholders' equity increased from 16,446 million USD in April 2019 to a peak of 60,098 million USD in April 2022, demonstrating consistent growth with minor fluctuations thereafter. Post-April 2022, equity levels exhibit relative stability with slight decreases and recoveries, maintaining values around the mid-50,000 to low-60,000 million USD range through July 2025. This steady increase suggests retained earnings accumulation or equity financing activity during the earlier periods, with stabilization thereafter.

Debt to Equity Ratio

The debt to equity ratio remained low and decreased from 0.19 in April 2019 to about 0.06 by January 2021, indicating a strengthening equity base relative to debt during this period. Subsequently, a sharp rise to 0.24 is observed in April 2021, coinciding with the spike in total debt noted previously. Following this peak, the ratio gradually declined to around 0.14 by July 2025, reflecting ongoing debt reduction or increased equity buffer maintenance relative to the period of debt increase.

Overall, the capital structure demonstrates a period of conservative leverage with declining debt up to early 2021, a substantial increase in debt in mid-2021, likely associated with new financing or acquisitions, followed by a gradual deleveraging trend. The company maintained a strong equity base throughout, with growth in stockholders' equity supporting lower leverage ratios in most periods, despite some volatility in debt levels.

The data exhibits notable fluctuations and trends in the company's total debt, stockholders' equity, and debt-to-equity ratio over the given quarterly periods.

Total Debt (including operating lease liability)

The total debt level initially remained relatively stable, fluctuating marginally around the 5,800 to 6,200 million USD range from April 2019 through January 2021. A sharp increase occurred in July 2021, where debt soared to approximately 16,861 million USD, followed by a decrease in subsequent quarters, hovering mostly between 11,000 and 14,000 million USD. This peak likely indicates a significant financing event or liability recognition during mid-2021, after which the company gradually reduced its debt exposure into early 2025.

Stockholders’ Equity

Stockholders’ equity showed a consistent upward trajectory throughout the periods. Starting from 16,446 million USD in April 2019, equity nearly doubled by October 2019 with a sharp rise to over 33,000 million USD, then continued increasing steadily to reach levels exceeding 61,000 million USD by mid-2025. Minor fluctuations appeared in early 2023 and mid-2024 but the overall trend reflects ongoing growth in the equity base.

Debt to Equity Ratio (including operating lease liability)

The debt-to-equity ratio was relatively low initially, between 0.14 and 0.38 during 2019 to early 2021, indicating conservative leverage. A brief increase coincided with the spike in total debt in mid-2021, pushing the ratio up to about 0.3 before it gradually declined again over time. From mid-2021 onward, the ratio steadily trended downward, falling below 0.2 by early 2025. This decline suggests a deleveraging process, with the company improving its capital structure by reducing debt relative to equity.

Overall, the financial indices reflect an episode of increased debt in mid-2021, possibly driven by strategic investments or acquisitions, followed by prudent management aimed at debt reduction and enhancement of equity capital. The steady increase in equity alongside lowering leverage ratios over time indicates strengthening financial stability and a conservative approach to balancing debt and equity financing.

The analysis of the quarterly financial data reveals several notable trends in the company's debt and capital structure over the examined periods.

Total Debt

The total debt shows a generally stable pattern in the early periods from April 2019 through April 2021, ranging approximately between $2,677 million and $3,177 million. A significant spike is observed in July 2021 where total debt surged sharply to $13,270 million, followed by a gradual decline in subsequent quarters. By the latest periods in 2025, total debt has reduced steadily, stabilizing around $8,430–$8,436 million. This suggests an initial period of low and stable leverage, followed by a temporary large increase in debt, and a subsequent effort to deleverage or reduce debt exposure over time.

Total Capital

Total capital exhibits a generally increasing trend from April 2019 to April 2021, rising from about $19,623 million to $45,243 million. Similar to the total debt pattern, total capital experiences a substantial jump in mid-2021 to around $68,790 million. Following this surge, the capital levels fluctuate modestly but remain within a higher range than the initial periods, varying between approximately $66,000 million and $70,000 million through 2025. The sharp increase in total capital corresponds closely with the spike in total debt, indicating financed growth or capital restructuring during mid-2021, followed by consolidation.

Debt to Capital Ratio

The debt to capital ratio remains low and stable during the early period at around 0.06 to 0.16, demonstrating conservative leverage levels relative to capital. The ratio jumps to 0.19 in July 2021, coinciding with the peak in total debt and capital, implying a temporary shift towards increased leverage. Post-2021, this ratio gradually declines and stabilizes around 0.12 by early 2025, reflecting a move towards lower relative debt levels and improved capital structure stability.

Overall, the data indicates a significant financial event or strategic adjustment around mid-2021 marked by a substantial increase in both debt and capital. Following this event, the company appears to have focused on reducing its relative leverage, bringing debt levels and debt to capital ratios down to more conservative levels by 2025. This pattern suggests an initial phase of leveraging for possibly expansion or acquisition, followed by a phase of consolidation and deleveraging to strengthen the balance sheet.

The analyzed financial data reveals several notable trends in the company's debt and capital structure over multiple quarters.

Total debt (including operating lease liability)

Total debt values exhibited a general increase from April 2019 to July 2021, rising from approximately 6.2 billion USD to a peak near 16.9 billion USD. Following this peak, debt levels decreased gradually across subsequent periods, reaching approximately 11.2 billion USD by July 2025. This pattern suggests significant debt accumulation followed by a reduction phase, indicating efforts to deleverage or restructure liability obligations.

Total capital (including operating lease liability)

Total capital showed a strong upward trend initially, increasing from roughly 22.7 billion USD in April 2019 to about 72.3 billion USD by July 2021. After reaching this elevated level, the capital base fluctuated within a narrower range and displayed a slight decreasing trend, ending near 72.6 billion USD in July 2025. This overall growth may reflect equity raises, retained earnings, or other increases in capital investment, while the stabilization could indicate maturation of capital structure.

Debt to capital (including operating lease liability)

The debt-to-capital ratio decreased substantially from 0.27 in April 2019 to around 0.13 by January 2021, reflecting a relative reduction in debt compared to total capital. This ratio spiked again to 0.23 in April 2021, correlating with the sharp rise in total debt at that time. Subsequently, the ratio demonstrated a progressive decline, stabilizing around 0.15 by mid-2025. This indicates improved leverage management over time, with the company gradually reducing its financial risk by lowering the proportion of debt in its capital structure.

In summary, the data portrays an initial phase of significant debt increase alongside capital expansion, followed by debt reduction and more stable capital levels. The debt-to-capital ratio trends support the interpretation of a deleveraging strategy and improved balance sheet management over the analyzed period.

Debt Levels

Total debt remained fairly stable from April 2019 through January 2021, maintaining a range roughly between 2,676 million and 3,177 million USD. Starting in April 2021, there was a significant increase, peaking around 13,270 million USD in July 2021. After this spike, total debt gradually declined over subsequent quarters, stabilizing around 8,400 to 9,400 million USD by the most recent periods in 2025.

Asset Trends

Total assets generally exhibited an upward trajectory over the entire period. There was steady growth from approximately 33,154 million USD in April 2019 to over 66,000 million USD in January 2021. A sharp increase followed in April 2021, with assets surpassing 88,000 million USD and continuing to grow, reaching values close to 102,928 million USD by January 2025. Despite some minor fluctuations, the overall trend shows a significant expansion in asset base.

Debt to Assets Ratio

The debt to assets ratio was relatively low and stable from 2019 through early 2021, fluctuating between 0.04 and 0.10. It rose notably in April 2021 to approximately 0.15, coinciding with the increase in total debt. Following that peak, the ratio steadily decreased but remained higher than the earliest period, fluctuating around 0.08 to 0.12 through to 2025. This indicates the company increased leverage temporarily but then improved its balance sheet leverage over time.

Overall Insights

The data indicates a period of increased borrowing around mid-2021, possibly to support asset growth or operational needs, followed by a deleveraging phase with declining debt. The asset base expanded substantially across the entire timeline, reflecting growth or acquisition activities. Despite higher debt in the middle period, the leverage ratio remained moderate, declining towards the end of the period, suggesting effective management of debt relative to asset size.

Total Debt (Including Operating Lease Liability)

The total debt showed a general decline from April 2019 through January 2021, decreasing from approximately $6.2 billion to around $6.1 billion. However, a significant spike occurred in July 2021 when total debt surged to $16.9 billion, peaking before a slight reduction to near $14 billion by January 2022. Following this peak, the total debt demonstrated a gradual downward trend with minor fluctuations, falling to about $11.2 billion by July 2025.

Total Assets

Total assets increased steadily from $33.2 billion in April 2019 to approximately $66.3 billion by January 2021. A marked surge is evident in July 2021 when total assets jumped sharply to around $88.7 billion. After this peak, assets remained relatively elevated, fluctuating between $87 billion and $99 billion through the subsequent quarters. Toward the most recent periods, assets showed a modest decreasing tendency, closing at roughly $97.6 billion in July 2025.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio decreased from 0.19 in April 2019 to approximately 0.09 by January 2021, reflecting a reduction in leverage relative to asset growth. The ratio then experienced a sharp increase to 0.19 in July 2021, aligning with the spike in total debt and assets. Subsequently, the ratio gradually declined again, stabilizing between 0.11 and 0.15 over the following quarters. In the most recent data points, from 2024 onward, the ratio is fairly steady around the 0.11 to 0.12 range, indicating a lower proportion of debt relative to assets compared to the earlier period.

Summary of Observations

The data indicates two distinct phases over the observed periods. Initially, there was steady growth in total assets accompanied by a reduction in debt and leverage. Midway through 2021, a significant capital event or restructuring is suggested by a sharp increase in both total debt and assets, temporarily elevating the leverage ratio. Following this event, the company progressively reduced its debt while maintaining an elevated asset base, resulting in a lower leverage ratio by the end of the timeline. This pattern points to strategic financial management aimed at expanding asset holdings while controlling debt levels to maintain a stable capital structure.

The financial data reveals notable developments in total assets, stockholders' equity, and financial leverage over the observed periods from April 2019 to July 2025.

Total Assets

Total assets exhibited a significant upward trend initially, with a marked increase from US$33,154 million in April 2019 to a peak of US$98,823 million in January 2024. This overall growth was punctuated by intermittent fluctuations, including slight declines in certain quarters such as January 2022 and July 2024. Despite these minor setbacks, total assets remained relatively high, demonstrating resilience and expansion over time. The data suggests that the company substantially increased its asset base, particularly between mid-2019 and early 2024.

Stockholders’ Equity

Stockholders’ equity mirrored the upward trajectory of total assets but with less volatility. Starting at US$16,446 million in April 2019, equity rose steadily to reach a high of US$61,173 million by January 2025. Minor fluctuations occurred in some quarters, for instance, a slight decrease was observed between April 2022 and January 2023, as well as in mid-2024. Still, the overall progression indicates a consistent increase in shareholder value, reflecting the company's growing net worth through retained earnings or other equity adjustments.

Financial Leverage

Financial leverage ratios fluctuated within a range roughly between 1.47 and 2.02, indicating moderate volatility. Initially, leverage declined from 2.02 in April 2019 to a low near 1.47 in October 2020, suggesting a reduction in reliance on debt relative to equity during that period. Subsequently, the leverage ratio showed an increasing tendency with oscillations, peaking at approximately 1.69 in January 2023. The variations in leverage imply changes in capital structure management, balancing debt and equity financing over time while maintaining a relatively stable leverage level slightly above 1.5 in recent quarters.

In summary, the data reflects robust growth in both total assets and stockholders’ equity with some cyclical variations, alongside moderate and manageable fluctuations in financial leverage. The company appears to have expanded its resource base significantly while maintaining a consistent equity foundation and a balanced leverage approach throughout the analyzed periods.