Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

salesforce.com inc., profitability ratios

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	salesforce.com inc.’s gross profit margin improved from 2017 to 2018 and from 2018 to 2019.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	salesforce.com inc.’s operating profit margin improved from 2017 to 2018 and from 2018 to 2019.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	salesforce.com inc.’s net profit margin deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	salesforce.com inc.’s ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
ROA	A profitability ratio calculated as net income divided by total assets.	salesforce.com inc.’s ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

salesforce.com inc., gross profit margin calculation, comparison to benchmarks

		Jan 31, 2019	Jan 31, 2018	Jan 31, 2017	Jan 31, 2016	Jan 31, 2015	Jan 31, 2014
	Selected Financial Data (USD $ in millions)
	Gross profit
	Revenues
	Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors
	Adobe Inc.
	Alphabet Inc.
	Facebook Inc.
	International Business Machines Corp.
	Intuit Inc.
	Microsoft Corp.
	Oracle Corp.

2019 Calculations

¹ Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	salesforce.com inc.’s gross profit margin improved from 2017 to 2018 and from 2018 to 2019.

salesforce.com inc., operating profit margin calculation, comparison to benchmarks

		Jan 31, 2019	Jan 31, 2018	Jan 31, 2017	Jan 31, 2016	Jan 31, 2015	Jan 31, 2014
	Selected Financial Data (USD $ in millions)
	Income (loss) from operations
	Revenues
	Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors
	Adobe Inc.
	Alphabet Inc.
	Facebook Inc.
	International Business Machines Corp.
	Intuit Inc.
	Microsoft Corp.
	Oracle Corp.
	Operating Profit Margin, Sector
	Software & Computer Services
	Operating Profit Margin, Industry
	Technology

2019 Calculations

¹ Operating profit margin = 100 × Income (loss) from operations ÷ Revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	salesforce.com inc.’s operating profit margin improved from 2017 to 2018 and from 2018 to 2019.

salesforce.com inc., net profit margin calculation, comparison to benchmarks

		Jan 31, 2019	Jan 31, 2018	Jan 31, 2017	Jan 31, 2016	Jan 31, 2015	Jan 31, 2014
	Selected Financial Data (USD $ in millions)
	Net income (loss)
	Revenues
	Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors
	Adobe Inc.
	Alphabet Inc.
	Facebook Inc.
	International Business Machines Corp.
	Intuit Inc.
	Microsoft Corp.
	Oracle Corp.
	Net Profit Margin, Sector
	Software & Computer Services
	Net Profit Margin, Industry
	Technology

2019 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	salesforce.com inc.’s net profit margin deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

salesforce.com inc., ROE calculation, comparison to benchmarks

		Jan 31, 2019	Jan 31, 2018	Jan 31, 2017	Jan 31, 2016	Jan 31, 2015	Jan 31, 2014
	Selected Financial Data (USD $ in millions)
	Net income (loss)
	Stockholders’ equity
	Ratio
	ROE¹
	Benchmarks
	ROE, Competitors
	Adobe Inc.
	Alphabet Inc.
	Facebook Inc.
	International Business Machines Corp.
	Intuit Inc.
	Microsoft Corp.
	Oracle Corp.
	ROE, Sector
	Software & Computer Services
	ROE, Industry
	Technology

2019 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	salesforce.com inc.’s ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

salesforce.com inc., ROA calculation, comparison to benchmarks

		Jan 31, 2019	Jan 31, 2018	Jan 31, 2017	Jan 31, 2016	Jan 31, 2015	Jan 31, 2014
	Selected Financial Data (USD $ in millions)
	Net income (loss)
	Total assets
	Ratio
	ROA¹
	Benchmarks
	ROA, Competitors
	Adobe Inc.
	Alphabet Inc.
	Facebook Inc.
	International Business Machines Corp.
	Intuit Inc.
	Microsoft Corp.
	Oracle Corp.
	ROA, Sector
	Software & Computer Services
	ROA, Industry
	Technology

2019 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	salesforce.com inc.’s ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

	salesforce.com inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

salesforce.com inc. (CRM)

Profitability Analysis