Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Salesforce Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Land 293 293 293 293 293 184
Buildings and building improvements 492 490 489 487 485 777
Computers, equipment and software 4,345 4,209 3,556 2,543 1,901 1,608
Furniture and fixtures 232 245 259 237 228 226
Leasehold improvements 1,556 1,604 1,807 1,656 1,507 1,381
Property and equipment, gross 6,918 6,841 6,404 5,216 4,414 4,176
Accumulated depreciation and amortization (3,682) (3,152) (2,702) (2,401) (1,955) (1,801)
Property and equipment, net 3,236 3,689 3,702 2,815 2,459 2,375

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).

Item Description The company
Property and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Salesforce Inc. property and equipment, gross increased from 2023 to 2024 and from 2024 to 2025.
Property and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Salesforce Inc. property and equipment, net decreased from 2023 to 2024 and from 2024 to 2025.

Asset Age Ratios (Summary)

Salesforce Inc., asset age ratios

Microsoft Excel
Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Average age ratio 55.58% 48.14% 44.22% 48.77% 47.44% 45.12%
Estimated total useful life (years) 7 6 7 7 7 9
Estimated age, time elapsed since purchase (years) 4 3 3 4 3 4
Estimated remaining life (years) 3 3 4 4 4 5

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Salesforce Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2023 to 2024 and from 2024 to 2025.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Salesforce Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2023 to 2024 but then increased from 2024 to 2025 not reaching 2023 level.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Salesforce Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025.
Estimated remaining life Salesforce Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2023 to 2024 and from 2024 to 2025.

Average Age

Microsoft Excel
Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 3,682 3,152 2,702 2,401 1,955 1,801
Property and equipment, gross 6,918 6,841 6,404 5,216 4,414 4,176
Land 293 293 293 293 293 184
Asset Age Ratio
Average age1 55.58% 48.14% 44.22% 48.77% 47.44% 45.12%

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 Average age = 100 × Accumulated depreciation and amortization ÷ (Property and equipment, gross – Land)
= 100 × 3,682 ÷ (6,918293) = 55.58%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Salesforce Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2023 to 2024 and from 2024 to 2025.

Estimated Total Useful Life

Microsoft Excel
Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Property and equipment, gross 6,918 6,841 6,404 5,216 4,414 4,176
Land 293 293 293 293 293 184
Depreciation and amortization expense 1,000 1,100 903 678 579 455
Asset Age Ratio (Years)
Estimated total useful life1 7 6 7 7 7 9

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 Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation and amortization expense
= (6,918293) ÷ 1,000 = 7

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Salesforce Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2023 to 2024 but then increased from 2024 to 2025 not reaching 2023 level.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 3,682 3,152 2,702 2,401 1,955 1,801
Depreciation and amortization expense 1,000 1,100 903 678 579 455
Asset Age Ratio (Years)
Time elapsed since purchase1 4 3 3 4 3 4

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 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense
= 3,682 ÷ 1,000 = 4

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Salesforce Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025.

Estimated Remaining Life

Microsoft Excel
Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Property and equipment, net 3,236 3,689 3,702 2,815 2,459 2,375
Land 293 293 293 293 293 184
Depreciation and amortization expense 1,000 1,100 903 678 579 455
Asset Age Ratio (Years)
Estimated remaining life1 3 3 4 4 4 5

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 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation and amortization expense
= (3,236293) ÷ 1,000 = 3

Asset age ratio Description The company
Estimated remaining life Salesforce Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2023 to 2024 and from 2024 to 2025.