Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Salesforce Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Federal	1,284)	940)	173)	6)	(12)	8)
State	245)	199)	216)	(16)	53)	33)
Foreign	925)	417)	397)	352)	238)	512)
Current	2,454)	1,556)	786)	342)	279)	553)
Federal	(982)	(640)	(134)	(181)	228)	(41)
State	(167)	(182)	(203)	(57)	66)	8)
Foreign	(64)	80)	3)	(16)	(2,084)	60)
Deferred	(1,213)	(742)	(334)	(254)	(1,790)	27)
Provision for (benefit from) income taxes	1,241)	814)	452)	88)	(1,511)	580)

Based on: 10-K (reporting date: 2025-01-31), 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).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Salesforce Inc. current increased from 2023 to 2024 and from 2024 to 2025.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Salesforce Inc. deferred decreased from 2023 to 2024 and from 2024 to 2025.
Provision for (benefit from) income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Salesforce Inc. provision for (benefit from) income taxes increased from 2023 to 2024 and from 2024 to 2025.

Salesforce Inc., effective income tax rate (EITR) reconciliation

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
	U.S. federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective tax rate	16.68%	16.44%	68.48%	5.74%	-59.00%	82.15%

Based on: 10-K (reporting date: 2025-01-31), 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).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Salesforce Inc. effective tax rate decreased from 2023 to 2024 but then slightly increased from 2024 to 2025.

Salesforce Inc., components of deferred tax assets and liabilities

US$ in millions

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Losses and deductions carryforward	209)	176)	268)	682)	202)	218)
Deferred stock-based compensation expense	237)	219)	312)	244)	179)	193)
Tax credits	769)	760)	1,055)	1,469)	990)	913)
Accrued liabilities	482)	419)	470)	300)	269)	214)
Intangible assets	1,694)	1,899)	1,976)	2,009)	2,011)	—)
Lease liabilities	740)	818)	912)	862)	948)	769)
Unearned revenue	(28)	37)	78)	116)	71)	4)
Capitalized research & development	2,431)	1,710)	914)	—)	—)	—)
Other	65)	81)	86)	32)	17)	31)
Deferred tax assets	6,599)	6,119)	6,071)	5,714)	4,687)	2,342)
Valuation allowance	(786)	(733)	(633)	(463)	(305)	(290)
Deferred tax assets, net of valuation allowance	5,813)	5,386)	5,438)	5,251)	4,382)	2,052)
Capitalized costs to obtain revenue contracts	(850)	(873)	(913)	(817)	(581)	(449)
Purchased intangible assets	(650)	(1,030)	(1,500)	(1,902)	(833)	(915)
Depreciation and amortization	(164)	(263)	(304)	(178)	(121)	(76)
Basis difference on strategic and other investments	(106)	(181)	(250)	(337)	(400)	(69)
Lease right-of-use assets	(554)	(636)	(767)	(735)	(863)	(695)
Deferred tax liabilities	(2,324)	(2,983)	(3,734)	(3,969)	(2,798)	(2,204)
Net deferred tax assets (liabilities)	3,489)	2,403)	1,704)	1,282)	1,584)	(152)

Based on: 10-K (reporting date: 2025-01-31), 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).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Salesforce Inc. deferred tax assets increased from 2023 to 2024 and from 2024 to 2025.
Deferred tax assets, net of valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Salesforce Inc. deferred tax assets, net of valuation allowance decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Salesforce Inc. net deferred tax assets (liabilities) increased from 2023 to 2024 and from 2024 to 2025.

Salesforce Inc., adjustments to financial statements

US$ in millions

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Adjustment to Total Assets
Total assets (as reported)	102,928)	99,823)	98,849)	95,209)	66,301)	55,126)
Less: Noncurrent deferred tax assets, net	3,489)	2,403)	1,704)	1,282)	1,584)	—)
Total assets (adjusted)	99,439)	97,420)	97,145)	93,927)	64,717)	55,126)
Adjustment to Total Liabilities
Total liabilities (as reported)	41,755)	40,177)	40,490)	37,078)	24,808)	21,241)
Less: Noncurrent deferred tax liabilities, net	—)	—)	—)	—)	—)	152)
Total liabilities (adjusted)	41,755)	40,177)	40,490)	37,078)	24,808)	21,089)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	61,173)	59,646)	58,359)	58,131)	41,493)	33,885)
Less: Net deferred tax assets (liabilities)	3,489)	2,403)	1,704)	1,282)	1,584)	(152)
Stockholders’ equity (adjusted)	57,684)	57,243)	56,655)	56,849)	39,909)	34,037)
Adjustment to Net Income
Net income (as reported)	6,197)	4,136)	208)	1,444)	4,072)	126)
Add: Deferred income tax expense (benefit)	(1,213)	(742)	(334)	(254)	(1,790)	27)
Net income (adjusted)	4,984)	3,394)	(126)	1,190)	2,282)	153)

Based on: 10-K (reporting date: 2025-01-31), 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).

Salesforce Inc., Financial Data: Reported vs. Adjusted

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Salesforce Inc., adjusted financial ratios

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Net Profit Margin
Reported net profit margin	16.35%	11.87%	0.66%	5.45%	19.16%	0.74%
Adjusted net profit margin	13.15%	9.74%	-0.40%	4.49%	10.74%	0.89%
Total Asset Turnover
Reported total asset turnover	0.37	0.35	0.32	0.28	0.32	0.31
Adjusted total asset turnover	0.38	0.36	0.32	0.28	0.33	0.31
Financial Leverage
Reported financial leverage	1.68	1.67	1.69	1.64	1.60	1.63
Adjusted financial leverage	1.72	1.70	1.71	1.65	1.62	1.62
Return on Equity (ROE)
Reported ROE	10.13%	6.93%	0.36%	2.48%	9.81%	0.37%
Adjusted ROE	8.64%	5.93%	-0.22%	2.09%	5.72%	0.45%
Return on Assets (ROA)
Reported ROA	6.02%	4.14%	0.21%	1.52%	6.14%	0.23%
Adjusted ROA	5.01%	3.48%	-0.13%	1.27%	3.53%	0.28%

Based on: 10-K (reporting date: 2025-01-31), 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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Salesforce Inc. adjusted net profit margin ratio improved from 2023 to 2024 and from 2024 to 2025.
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 2023 to 2024 and from 2024 to 2025.
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 decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Salesforce Inc. adjusted ROE improved from 2023 to 2024 and from 2024 to 2025.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Salesforce Inc. adjusted ROA improved from 2023 to 2024 and from 2024 to 2025.

Salesforce Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	6,197)	4,136)	208)	1,444)	4,072)	126)
Revenues	37,895)	34,857)	31,352)	26,492)	21,252)	17,098)
Profitability Ratio
Net profit margin¹	16.35%	11.87%	0.66%	5.45%	19.16%	0.74%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	4,984)	3,394)	(126)	1,190)	2,282)	153)
Revenues	37,895)	34,857)	31,352)	26,492)	21,252)	17,098)
Profitability Ratio
Adjusted net profit margin²	13.15%	9.74%	-0.40%	4.49%	10.74%	0.89%

Based on: 10-K (reporting date: 2025-01-31), 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).

2025 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 6,197 ÷ 37,895 = 16.35%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 4,984 ÷ 37,895 = 13.15%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Salesforce Inc. adjusted net profit margin ratio improved from 2023 to 2024 and from 2024 to 2025.

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues	37,895)	34,857)	31,352)	26,492)	21,252)	17,098)
Total assets	102,928)	99,823)	98,849)	95,209)	66,301)	55,126)
Activity Ratio
Total asset turnover¹	0.37	0.35	0.32	0.28	0.32	0.31
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues	37,895)	34,857)	31,352)	26,492)	21,252)	17,098)
Adjusted total assets	99,439)	97,420)	97,145)	93,927)	64,717)	55,126)
Activity Ratio
Adjusted total asset turnover²	0.38	0.36	0.32	0.28	0.33	0.31

Based on: 10-K (reporting date: 2025-01-31), 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).

2025 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 37,895 ÷ 102,928 = 0.37

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 37,895 ÷ 99,439 = 0.38

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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 2023 to 2024 and from 2024 to 2025.

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	102,928)	99,823)	98,849)	95,209)	66,301)	55,126)
Stockholders’ equity	61,173)	59,646)	58,359)	58,131)	41,493)	33,885)
Solvency Ratio
Financial leverage¹	1.68	1.67	1.69	1.64	1.60	1.63
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	99,439)	97,420)	97,145)	93,927)	64,717)	55,126)
Adjusted stockholders’ equity	57,684)	57,243)	56,655)	56,849)	39,909)	34,037)
Solvency Ratio
Adjusted financial leverage²	1.72	1.70	1.71	1.65	1.62	1.62

Based on: 10-K (reporting date: 2025-01-31), 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).

2025 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 102,928 ÷ 61,173 = 1.68

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 99,439 ÷ 57,684 = 1.72

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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 decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level.

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	6,197)	4,136)	208)	1,444)	4,072)	126)
Stockholders’ equity	61,173)	59,646)	58,359)	58,131)	41,493)	33,885)
Profitability Ratio
ROE¹	10.13%	6.93%	0.36%	2.48%	9.81%	0.37%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	4,984)	3,394)	(126)	1,190)	2,282)	153)
Adjusted stockholders’ equity	57,684)	57,243)	56,655)	56,849)	39,909)	34,037)
Profitability Ratio
Adjusted ROE²	8.64%	5.93%	-0.22%	2.09%	5.72%	0.45%

Based on: 10-K (reporting date: 2025-01-31), 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).

2025 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 6,197 ÷ 61,173 = 10.13%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 4,984 ÷ 57,684 = 8.64%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Salesforce Inc. adjusted ROE improved from 2023 to 2024 and from 2024 to 2025.

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	6,197)	4,136)	208)	1,444)	4,072)	126)
Total assets	102,928)	99,823)	98,849)	95,209)	66,301)	55,126)
Profitability Ratio
ROA¹	6.02%	4.14%	0.21%	1.52%	6.14%	0.23%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	4,984)	3,394)	(126)	1,190)	2,282)	153)
Adjusted total assets	99,439)	97,420)	97,145)	93,927)	64,717)	55,126)
Profitability Ratio
Adjusted ROA²	5.01%	3.48%	-0.13%	1.27%	3.53%	0.28%

Based on: 10-K (reporting date: 2025-01-31), 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).

2025 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 6,197 ÷ 102,928 = 6.02%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 4,984 ÷ 99,439 = 5.01%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Salesforce Inc. adjusted ROA improved from 2023 to 2024 and from 2024 to 2025.

Salesforce Inc. (NYSE:CRM)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

Salesforce Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Salesforce Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)