Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Salesforce Inc., profitability ratios

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Return on Sales
Gross profit margin 75.50% 73.34% 73.48% 74.41% 75.23% 74.02%
Operating profit margin 14.38% 3.29% 2.07% 2.14% 1.74% 4.03%
Net profit margin 11.87% 0.66% 5.45% 19.16% 0.74% 8.36%
Return on Investment
Return on equity (ROE) 6.93% 0.36% 2.48% 9.81% 0.37% 7.11%
Return on assets (ROA) 4.14% 0.21% 1.52% 6.14% 0.23% 3.61%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Salesforce Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Salesforce Inc. operating profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Salesforce Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Salesforce Inc. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
ROA A profitability ratio calculated as net income divided by total assets. Salesforce Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Gross Profit Margin

Salesforce Inc., gross profit margin 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)
Gross profit 26,316 22,992 19,466 15,814 12,863 9,831
Revenues 34,857 31,352 26,492 21,252 17,098 13,282
Profitability Ratio
Gross profit margin1 75.50% 73.34% 73.48% 74.41% 75.23% 74.02%
Benchmarks
Gross Profit Margin, Competitors2
Accenture PLC 32.34% 31.99% 32.38% 31.53% 30.81%
Adobe Inc. 87.87% 87.70% 88.18% 86.62% 85.03%
International Business Machines Corp. 55.45% 54.00% 54.90% 48.32% 47.30%
Intuit Inc. 78.13% 81.09% 82.53% 82.05% 82.80%
Microsoft Corp. 68.92% 68.40% 68.93% 67.78% 65.90%
Oracle Corp. 72.85% 79.08% 80.59% 79.68% 79.76%
Palo Alto Networks Inc. 72.29% 68.76% 70.05% 70.68% 72.12%
ServiceNow Inc. 78.59% 78.29% 77.05% 78.16% 76.98%
Synopsys Inc. 79.08% 79.07% 79.50% 78.44% 77.60%

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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 26,316 ÷ 34,857 = 75.50%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Salesforce Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Operating Profit Margin

Salesforce Inc., operating profit margin 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)
Income from operations 5,011 1,030 548 455 297 535
Revenues 34,857 31,352 26,492 21,252 17,098 13,282
Profitability Ratio
Operating profit margin1 14.38% 3.29% 2.07% 2.14% 1.74% 4.03%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 13.74% 15.21% 15.08% 14.69% 14.59%
Adobe Inc. 34.26% 34.64% 36.76% 32.93% 29.25%
International Business Machines Corp. 15.17% 13.50% 11.97% 9.22% 13.67%
Intuit Inc. 21.86% 20.20% 25.95% 28.34% 27.33%
Microsoft Corp. 41.77% 42.06% 41.59% 37.03% 34.14%
Oracle Corp. 26.21% 25.74% 37.58% 35.57% 34.26%
Palo Alto Networks Inc. 5.62% -3.43% -7.15% -5.25% -1.87%
ServiceNow Inc. 8.49% 4.90% 4.36% 4.40% 1.22%
Synopsys Inc. 21.72% 22.87% 17.48% 16.83% 15.48%
Operating Profit Margin, Sector
Software & Services 28.03% 27.98% 28.89% 25.05% 24.34%
Operating Profit Margin, Industry
Information Technology 26.31% 28.45% 28.75% 24.95% 25.41%

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
Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × 5,011 ÷ 34,857 = 14.38%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Salesforce Inc. operating profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

Net Profit Margin

Salesforce Inc., net profit margin 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
Revenues 34,857 31,352 26,492 21,252 17,098 13,282
Profitability Ratio
Net profit margin1 11.87% 0.66% 5.45% 19.16% 0.74% 8.36%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 10.72% 11.17% 11.69% 11.52% 11.06%
Adobe Inc. 27.97% 27.01% 30.55% 40.88% 26.42%
International Business Machines Corp. 12.13% 2.71% 10.01% 7.59% 12.22%
Intuit Inc. 16.59% 16.23% 21.41% 23.78% 22.95%
Microsoft Corp. 34.15% 36.69% 36.45% 30.96% 31.18%
Oracle Corp. 17.02% 15.83% 33.96% 25.94% 28.05%
Palo Alto Networks Inc. 6.38% -4.85% -11.72% -7.83% -2.82%
ServiceNow Inc. 19.30% 4.49% 3.90% 2.62% 18.11%
Synopsys Inc. 21.05% 19.38% 18.02% 18.03% 15.84%
Net Profit Margin, Sector
Software & Services 22.47% 22.24% 25.99% 20.85% 21.80%
Net Profit Margin, Industry
Information Technology 22.13% 24.06% 25.54% 21.37% 22.17%

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
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 4,136 ÷ 34,857 = 11.87%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Salesforce Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Return on Equity (ROE)

Salesforce Inc., ROE 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
Stockholders’ equity 59,646 58,359 58,131 41,493 33,885 15,605
Profitability Ratio
ROE1 6.93% 0.36% 2.48% 9.81% 0.37% 7.11%
Benchmarks
ROE, Competitors2
Accenture PLC 26.75% 31.11% 30.25% 30.05% 33.17%
Adobe Inc. 32.86% 33.85% 32.59% 39.66% 28.03%
International Business Machines Corp. 33.29% 7.47% 30.38% 27.14% 45.25%
Intuit Inc. 13.81% 12.57% 20.89% 35.76% 41.53%
Microsoft Corp. 35.09% 43.68% 43.15% 37.43% 38.35%
Oracle Corp. 792.45% 262.43% 83.94% 50.87%
Palo Alto Networks Inc. 25.15% -127.14% -78.63% -24.23% -5.16%
ServiceNow Inc. 22.69% 6.46% 6.22% 4.18% 29.45%
Synopsys Inc. 20.01% 17.85% 14.31% 13.54% 13.04%
ROE, Sector
Software & Services 29.37% 32.03% 37.53% 31.80% 36.15%
ROE, Industry
Information Technology 31.94% 38.70% 42.55% 35.28% 36.69%

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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,136 ÷ 59,646 = 6.93%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Salesforce Inc. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Return on Assets (ROA)

Salesforce Inc., ROA 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
Total assets 99,823 98,849 95,209 66,301 55,126 30,737
Profitability Ratio
ROA1 4.14% 0.21% 1.52% 6.14% 0.23% 3.61%
Benchmarks
ROA, Competitors2
Accenture PLC 13.41% 14.55% 13.68% 13.78% 16.04%
Adobe Inc. 18.23% 17.51% 17.70% 21.66% 14.22%
International Business Machines Corp. 5.55% 1.29% 4.35% 3.58% 6.20%
Intuit Inc. 8.58% 7.45% 13.29% 16.70% 24.78%
Microsoft Corp. 17.56% 19.94% 18.36% 14.70% 13.69%
Oracle Corp. 6.33% 6.15% 10.48% 8.78% 10.20%
Palo Alto Networks Inc. 3.03% -2.18% -4.87% -2.95% -1.24%
ServiceNow Inc. 9.96% 2.44% 2.13% 1.36% 10.41%
Synopsys Inc. 11.90% 10.45% 8.66% 8.27% 8.31%
ROA, Sector
Software & Services 11.45% 11.67% 12.60% 10.03% 10.89%
ROA, Industry
Information Technology 13.10% 15.14% 15.64% 12.15% 12.81%

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
ROA = 100 × Net income ÷ Total assets
= 100 × 4,136 ÷ 99,823 = 4.14%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Salesforce Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.