Stock Analysis on Net

salesforce.com inc. (NYSE:CRM)

Analysis of Profitability Ratios 

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

salesforce.com inc., profitability ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Return on Sales
Gross profit margin 73.48% 74.41% 75.23% 74.02% 73.54% 73.38%
Operating profit margin 2.07% 2.14% 1.74% 4.03% 2.25% 0.77%
Net profit margin 5.45% 19.16% 0.74% 8.36% 1.22% 2.14%
Return on Investment
Return on equity (ROE) 2.48% 9.81% 0.37% 7.11% 1.36% 2.40%
Return on assets (ROA) 1.52% 6.14% 0.23% 3.61% 0.61% 1.02%

Based on: 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. salesforce.com inc. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. salesforce.com inc. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. salesforce.com inc. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. salesforce.com inc. ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
ROA A profitability ratio calculated as net income divided by total assets. salesforce.com inc. ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Gross Profit Margin

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

Microsoft Excel LibreOffice Calc
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data (US$ in millions)
Gross profit 19,466  15,814  12,863  9,831  7,706  6,158 
Revenues 26,492  21,252  17,098  13,282  10,480  8,392 
Profitability Ratio
Gross profit margin1 73.48% 74.41% 75.23% 74.02% 73.54% 73.38%
Benchmarks
Gross Profit Margin, Competitors2
Accenture PLC 32.38% 31.53% 30.81% 29.91% 30.00%
Adobe Inc. 88.18% 86.62% 85.03% 86.77% 86.16%
Automatic Data Processing Inc. 42.42% 42.12% 42.95% 41.15% 41.28%
Fidelity National Information Services Inc. 37.44% 33.49% 36.03% 33.88% 32.25%
International Business Machines Corp. 54.90% 48.32% 47.30% 46.41% 45.78%
Intuit Inc. 82.53% 82.05% 82.80% 83.62% 84.37%
Microsoft Corp. 68.93% 67.78% 65.90% 65.25% 61.91%
Oracle Corp. 80.59% 79.68% 79.76% 79.71% 80.20%
PayPal Holdings Inc. 46.99% 46.62% 44.94% 46.53% 48.87%
ServiceNow Inc. 77.05% 78.16% 76.98% 76.13% 74.15%

Based on: 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31).

1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 19,466 ÷ 26,492 = 73.48%

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.com inc. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Operating Profit Margin

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

Microsoft Excel LibreOffice Calc
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data (US$ in millions)
Income from operations 548  455  297  535  236  64 
Revenues 26,492  21,252  17,098  13,282  10,480  8,392 
Profitability Ratio
Operating profit margin1 2.07% 2.14% 1.74% 4.03% 2.25% 0.77%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 15.08% 14.69% 14.59% 14.04% 12.60%
Adobe Inc. 36.76% 32.93% 29.25% 31.45% 29.69%
Automatic Data Processing Inc. 22.16% 21.53% 21.34% 18.85% 18.80%
Fidelity National Information Services Inc. 7.60% 4.40% 9.38% 17.31% 16.35%
International Business Machines Corp. 11.97% 9.22% 13.67% 16.61% 14.91%
Intuit Inc. 25.95% 28.34% 27.33% 25.10% 26.95%
Mastercard Inc. 53.39% 52.81% 57.24% 48.71% 52.99%
Microsoft Corp. 41.59% 37.03% 34.14% 31.77% 24.82%
Oracle Corp. 37.58% 35.57% 34.26% 34.34% 33.69%
PayPal Holdings Inc. 16.80% 15.33% 15.30% 14.20% 16.24%
ServiceNow Inc. 4.36% 4.40% 1.22% -1.63% -5.25%
Visa Inc. 65.56% 64.46% 65.29% 62.86% 66.15%
Operating Profit Margin, Sector
Software & Services 30.70% 27.16% 27.43% 26.52% 24.02%
Operating Profit Margin, Industry
Information Technology 29.60% 26.04% 26.82% 27.42% 25.02%

Based on: 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31).

1 2022 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × 548 ÷ 26,492 = 2.07%

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.com inc. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Net Profit Margin

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

Microsoft Excel LibreOffice Calc
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data (US$ in millions)
Net income 1,444  4,072  126  1,110  127  180 
Revenues 26,492  21,252  17,098  13,282  10,480  8,392 
Profitability Ratio
Net profit margin1 5.45% 19.16% 0.74% 8.36% 1.22% 2.14%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 11.69% 11.52% 11.06% 9.76% 9.37%
Adobe Inc. 30.55% 40.88% 26.42% 28.69% 23.20%
Automatic Data Processing Inc. 17.32% 16.91% 16.17% 12.16% 14.00%
Fidelity National Information Services Inc. 3.00% 1.26% 2.88% 10.04% 14.46%
International Business Machines Corp. 10.01% 7.59% 12.22% 10.97% 7.27%
Intuit Inc. 21.41% 23.78% 22.95% 20.31% 18.76%
Mastercard Inc. 46.00% 41.90% 48.08% 39.19% 31.33%
Microsoft Corp. 36.45% 30.96% 31.18% 15.02% 23.57%
Oracle Corp. 33.96% 25.94% 28.05% 9.60% 24.74%
PayPal Holdings Inc. 16.43% 19.59% 13.84% 13.31% 13.71%
ServiceNow Inc. 3.90% 2.62% 18.11% -1.02% -7.71%
Visa Inc. 51.07% 49.74% 52.57% 49.98% 36.49%
Net Profit Margin, Sector
Software & Services 27.03% 22.56% 23.85% 15.52% 17.45%
Net Profit Margin, Industry
Information Technology 26.11% 22.23% 23.17% 19.61% 18.55%

Based on: 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31).

1 2022 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 1,444 ÷ 26,492 = 5.45%

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.com inc. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Return on Equity (ROE)

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

Microsoft Excel LibreOffice Calc
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data (US$ in millions)
Net income 1,444  4,072  126  1,110  127  180 
Stockholders’ equity 58,131  41,493  33,885  15,605  9,388  7,500 
Profitability Ratio
ROE1 2.48% 9.81% 0.37% 7.11% 1.36% 2.40%
Benchmarks
ROE, Competitors2
Accenture PLC 30.25% 30.05% 33.17% 39.17% 38.50%
Adobe Inc. 32.59% 39.66% 28.03% 27.67% 20.02%
Automatic Data Processing Inc. 45.83% 42.88% 42.46% 46.85% 43.59%
Fidelity National Information Services Inc. 0.88% 0.32% 0.60% 8.28% 12.17%
International Business Machines Corp. 30.38% 27.14% 45.25% 51.96% 32.70%
Intuit Inc. 20.89% 35.76% 41.53% 51.44% 71.71%
Mastercard Inc. 118.80% 100.31% 137.76% 108.60% 71.60%
Microsoft Corp. 43.15% 37.43% 38.35% 20.03% 29.29%
Oracle Corp. 262.43% 83.94% 50.87% 8.37% 17.33%
PayPal Holdings Inc. 19.19% 20.99% 14.56% 13.37% 11.22%
ServiceNow Inc. 6.22% 4.18% 29.45% -2.40% -25.53%
Visa Inc. 32.75% 30.01% 34.83% 30.29% 20.45%
ROE, Sector
Software & Services 33.60% 28.33% 31.62% 23.46% 24.15%
ROE, Industry
Information Technology 40.02% 33.11% 34.56% 30.73% 23.48%

Based on: 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31).

1 2022 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,444 ÷ 58,131 = 2.48%

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.com inc. ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Return on Assets (ROA)

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

Microsoft Excel LibreOffice Calc
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data (US$ in millions)
Net income 1,444  4,072  126  1,110  127  180 
Total assets 95,209  66,301  55,126  30,737  21,010  17,585 
Profitability Ratio
ROA1 1.52% 6.14% 0.23% 3.61% 0.61% 1.02%
Benchmarks
ROA, Competitors2
Accenture PLC 13.68% 13.78% 16.04% 16.61% 15.18%
Adobe Inc. 17.70% 21.66% 14.22% 13.80% 11.65%
Automatic Data Processing Inc. 5.33% 6.30% 5.47% 4.37% 4.66%
Fidelity National Information Services Inc. 0.50% 0.19% 0.36% 3.56% 5.38%
International Business Machines Corp. 4.35% 3.58% 6.20% 7.07% 4.59%
Intuit Inc. 13.29% 16.70% 24.78% 23.39% 23.87%
Mastercard Inc. 23.06% 19.09% 27.77% 23.57% 18.36%
Microsoft Corp. 18.36% 14.70% 13.69% 6.40% 8.80%
Oracle Corp. 10.48% 8.78% 10.20% 2.79% 6.92%
PayPal Holdings Inc. 5.50% 5.97% 4.79% 4.75% 4.40%
ServiceNow Inc. 2.13% 1.36% 10.41% -0.69% -4.39%
Visa Inc. 14.85% 13.43% 16.65% 14.88% 9.85%
ROA, Sector
Software & Services 11.58% 9.50% 10.44% 7.30% 7.66%
ROA, Industry
Information Technology 14.67% 11.57% 12.31% 10.99% 8.99%

Based on: 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31).

1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,444 ÷ 95,209 = 1.52%

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.com inc. ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.