Salesforce (Salesforce) ROCE %

: 9.92% (As of Jan. 2024)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Salesforce's annualized ROCE % for the quarter that ended in Jan. 2024 was 9.92%.

Salesforce ROCE % Historical Data

The historical data trend for Salesforce's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Salesforce Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

1.55

1.02

0.90

2.54

8.21

Salesforce Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %																6.47	6.20	8.50	8.69	9.92

Salesforce ROCE % Calculation

Salesforce's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	5999	/	( ( (98849 - 25891)	+	(99823 - 26631) )	/ 2 )
	=	5999	/	( (72958	+	73192)	/ 2 )
	=	5999	/	73075
	=	8.21 %

Salesforce's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	7180	/	( ( (91022 - 19394)	+	(99823 - 26631) )	/ 2 )
	=	7180	/	( ( 71628	+	73192 )	/ 2 )
	=	7180	/	72410
	=	9.92 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Salesforce (NYSE:CRM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Salesforce ROCE % Related Terms

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Salesforce (Salesforce) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Salesforce Inc (NYSE:CRM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CRM:Peru CRM:Mexico CRM_KZ:Kazakhstan 1CRM:Italy FOOd:UK 0QYJ:UK FOO0:Germany FOO:Germany FOO:Germany FOO:Germany CRM:Canada SSFO34:Brazil CRM:Argentina

Address

415 Mission Street, 3rd Floor, Salesforce Tower, San Francisco, CA, USA, 94105

Website

https://www.salesforce.com

Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.

Executives

Brian Millham	officer: President and COO	415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 90403
Sundeep G. Reddy	officer: EVP & Chief Accounting Officer	6555 NORTH STATE HWY 161, IRVING TX 75039
Srinivas Tallapragada	officer: President, Technology	THE LANDMARK AT ONE MARKET STREET, #300, SAN FRANCISCO CA 94105
Amy E Weaver	officer: EVP, General Counsel	THE LANDMARK @ ONE MARKET STREET #300, SAN FRANCISCO CA 94105
Parker Harris	director, officer: Co-Founder and CTO	THE LANDMARK @ ONE MARKET, SUITE 300, SAN FRANCISCO CA 94105
Marc Benioff	director, officer: Chairman of the Board & CEO	50 FREMONT STREET, SAN FRANCISCO CA 94105
Brent Hyder	officer: President/Chief People Officer	415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
Miguel Milano	officer: President and CRO	415 MISSION ST, 3RD FLOOR, SAN FRANCISCO CA 94105
Sabastian Niles	officer: President and CLO	415 MISSION ST, 3RD FLOOR, SAN FRANCISCO CA 94105
Neelie Kroes	director	VAN BRONCKHORSTLAAN, 2242 PZ WASSENAAR, NETHERLANDS P8 99999
Valueact Capital Management, Llc	director, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
J. Mehra Sachin	director	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Arnold W Donald	director	C/O CARNIVAL CORPORATION, 3655 N.W. 87TH AVENUE, MIAMI FL 33178
G Mason Morfit	director, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Valueact Holdings Ii, L.p.	director, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, FOURTH FLOOR, SAN FRANCISCO CA 94129