Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Salesforce Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019
Acquired developed technology	4,624)	4,844)	5,633)	3,305)	3,598)	1,429)
Customer relationships	6,674)	6,691)	6,995)	3,510)	3,252)	1,938)
Other	303)	303)	345)	45)	72)	52)
Intangible assets, gross	11,601)	11,838)	12,973)	6,860)	6,922)	3,419)
Accumulated amortization	(6,323)	(4,713)	(3,995)	(2,746)	(2,198)	(1,496)
Intangible assets, net	5,278)	7,125)	8,978)	4,114)	4,724)	1,923)
Goodwill	48,620)	48,568)	47,937)	26,318)	25,134)	12,851)
Intangible assets acquired through business combinations and goodwill	53,898)	55,693)	56,915)	30,432)	29,858)	14,774)

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).

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Item	Description	The company
Intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Salesforce Inc. intangible assets, net decreased from 2022 to 2023 and from 2023 to 2024.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Salesforce Inc. goodwill increased from 2022 to 2023 and from 2023 to 2024.
Intangible assets acquired through business combinations and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Salesforce Inc. intangible assets acquired through business combinations and goodwill decreased from 2022 to 2023 and from 2023 to 2024.

Salesforce Inc., adjustments to financial statements

US$ in millions

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019
Adjustment to Total Assets
Total assets (as reported)	99,823)	98,849)	95,209)	66,301)	55,126)	30,737)
Less: Goodwill	48,620)	48,568)	47,937)	26,318)	25,134)	12,851)
Total assets (adjusted)	51,203)	50,281)	47,272)	39,983)	29,992)	17,886)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	59,646)	58,359)	58,131)	41,493)	33,885)	15,605)
Less: Goodwill	48,620)	48,568)	47,937)	26,318)	25,134)	12,851)
Stockholders’ equity (adjusted)	11,026)	9,791)	10,194)	15,175)	8,751)	2,754)

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).

Salesforce Inc., Financial Data: Reported vs. Adjusted

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Salesforce Inc., adjusted financial ratios

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019
Total Asset Turnover
Reported total asset turnover	0.35	0.32	0.28	0.32	0.31	0.43
Adjusted total asset turnover	0.68	0.62	0.56	0.53	0.57	0.74
Financial Leverage
Reported financial leverage	1.67	1.69	1.64	1.60	1.63	1.97
Adjusted financial leverage	4.64	5.14	4.64	2.63	3.43	6.49
Return on Equity (ROE)
Reported ROE	6.93%	0.36%	2.48%	9.81%	0.37%	7.11%
Adjusted ROE	37.51%	2.12%	14.17%	26.83%	1.44%	40.31%
Return on Assets (ROA)
Reported ROA	4.14%	0.21%	1.52%	6.14%	0.23%	3.61%
Adjusted ROA	8.08%	0.41%	3.05%	10.18%	0.42%	6.21%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Salesforce Inc. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Salesforce Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Salesforce Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Salesforce Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Salesforce Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues	34,857)	31,352)	26,492)	21,252)	17,098)	13,282)
Total assets	99,823)	98,849)	95,209)	66,301)	55,126)	30,737)
Activity Ratio
Total asset turnover¹	0.35	0.32	0.28	0.32	0.31	0.43
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	34,857)	31,352)	26,492)	21,252)	17,098)	13,282)
Adjusted total assets	51,203)	50,281)	47,272)	39,983)	29,992)	17,886)
Activity Ratio
Adjusted total asset turnover²	0.68	0.62	0.56	0.53	0.57	0.74

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).

2024 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 34,857 ÷ 99,823 = 0.35

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 34,857 ÷ 51,203 = 0.68

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Salesforce Inc. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	99,823)	98,849)	95,209)	66,301)	55,126)	30,737)
Stockholders’ equity	59,646)	58,359)	58,131)	41,493)	33,885)	15,605)
Solvency Ratio
Financial leverage¹	1.67	1.69	1.64	1.60	1.63	1.97
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	51,203)	50,281)	47,272)	39,983)	29,992)	17,886)
Adjusted stockholders’ equity	11,026)	9,791)	10,194)	15,175)	8,751)	2,754)
Solvency Ratio
Adjusted financial leverage²	4.64	5.14	4.64	2.63	3.43	6.49

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).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 99,823 ÷ 59,646 = 1.67

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 51,203 ÷ 11,026 = 4.64

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Salesforce Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019
As Reported
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%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	4,136)	208)	1,444)	4,072)	126)	1,110)
Adjusted stockholders’ equity	11,026)	9,791)	10,194)	15,175)	8,751)	2,754)
Profitability Ratio
Adjusted ROE²	37.51%	2.12%	14.17%	26.83%	1.44%	40.31%

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).

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,136 ÷ 59,646 = 6.93%

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 4,136 ÷ 11,026 = 37.51%

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

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019
As Reported
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%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	4,136)	208)	1,444)	4,072)	126)	1,110)
Adjusted total assets	51,203)	50,281)	47,272)	39,983)	29,992)	17,886)
Profitability Ratio
Adjusted ROA²	8.08%	0.41%	3.05%	10.18%	0.42%	6.21%

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).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 4,136 ÷ 99,823 = 4.14%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 4,136 ÷ 51,203 = 8.08%

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

Salesforce Inc. (NYSE:CRM)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Salesforce Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Salesforce Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)