Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

Economic Value Added (EVA)

Microsoft Excel

Economic Profit

Salesforce Inc., economic profit calculation

US$ in millions

Microsoft Excel
12 months ended: Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Net operating profit after taxes (NOPAT)1 7,196 4,830 2,538 4,442 4,388 2,422
Cost of capital2 17.13% 17.06% 16.61% 16.60% 17.16% 17.05%
Invested capital3 85,881 84,431 84,299 81,940 53,200 47,247
 
Economic profit4 (7,516) (9,578) (11,467) (9,163) (4,740) (5,634)

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).

1 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 7,19617.13% × 85,881 = -7,516

Item Description The company
Economic profit Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital. Salesforce Inc. economic profit increased from 2023 to 2024 and from 2024 to 2025.

Net Operating Profit after Taxes (NOPAT)

Salesforce Inc., NOPAT calculation

US$ in millions

Microsoft Excel
12 months ended: Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Net income 6,197 4,136 208 1,444 4,072 126
Deferred income tax expense (benefit)1 (1,213) (742) (334) (254) (1,790) 27
Increase (decrease) in unearned revenue2 1,740 1,627 1,748 3,021 1,945 2,098
Increase (decrease) in restructuring liability3 182 (487) 607
Increase (decrease) in equity equivalents4 709 398 2,021 2,767 155 2,125
Interest expense 272 283 300 221 125 130
Interest expense, operating lease liability5 95 92 91 71 79 86
Adjusted interest expense 367 375 391 292 204 216
Tax benefit of interest expense6 (77) (79) (82) (61) (43) (45)
Adjusted interest expense, after taxes7 290 296 309 231 161 171
Net operating profit after taxes (NOPAT) 7,196 4,830 2,538 4,442 4,388 2,422

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).

1 Elimination of deferred tax expense. See details »

2 Addition of increase (decrease) in unearned revenue.

3 Addition of increase (decrease) in restructuring liability.

4 Addition of increase (decrease) in equity equivalents to net income.

5 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 2,959 × 3.20% = 95

6 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 367 × 21.00% = 77

7 Addition of after taxes interest expense to net income.

Item Description The company
NOPAT Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income. Salesforce Inc. NOPAT increased from 2023 to 2024 and from 2024 to 2025.

Cash Operating Taxes

Salesforce Inc., cash operating taxes calculation

US$ in millions

Microsoft Excel
12 months ended: Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Provision for (benefit from) income taxes 1,241 814 452 88 (1,511) 580
Less: Deferred income tax expense (benefit) (1,213) (742) (334) (254) (1,790) 27
Add: Tax savings from interest expense 77 79 82 61 43 45
Cash operating taxes 2,531 1,635 868 403 322 598

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
Cash operating taxes Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction. Salesforce Inc. cash operating taxes increased from 2023 to 2024 and from 2024 to 2025.

Invested Capital

Salesforce Inc., invested capital calculation (financing approach)

US$ in millions

Microsoft Excel
Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020
Finance lease liabilities, current 337 372 257 114 35 53
Debt, current 999 1,182 4 4 4
Noncurrent debt, excluding current portion 8,433 8,427 9,419 10,592 2,673 2,673
Noncurrent finance lease liabilities 341 602 534 271 93 332
Operating lease liability1 2,959 3,162 3,487 3,389 3,608 3,195
Total reported debt & leases 12,070 13,562 14,879 14,370 6,413 6,257
Stockholders’ equity 61,173 59,646 58,359 58,131 41,493 33,885
Net deferred tax (assets) liabilities2 (3,489) (2,403) (1,704) (1,282) (1,584) 152
Unearned revenue3 20,743 19,003 17,376 15,628 12,607 10,662
Restructuring liability4 302 120 607
Equity equivalents5 17,556 16,720 16,279 14,346 11,023 10,814
Accumulated other comprehensive (income) loss, net of tax6 266 225 274 166 42 93
Adjusted stockholders’ equity 78,995 76,591 74,912 72,643 52,558 44,792
Marketable securities7 (5,184) (5,722) (5,492) (5,073) (5,771) (3,802)
Invested capital 85,881 84,431 84,299 81,940 53,200 47,247

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).

1 Addition of capitalized operating leases.

2 Elimination of deferred taxes from assets and liabilities. See details »

3 Addition of unearned revenue.

4 Addition of restructuring liability.

5 Addition of equity equivalents to stockholders’ equity.

6 Removal of accumulated other comprehensive income.

7 Subtraction of marketable securities.

Item Description The company
Invested capital Capital is an approximation of the economic book value of all cash invested in going-concern business activities. Salesforce Inc. invested capital increased from 2023 to 2024 and from 2024 to 2025.

Cost of Capital

Salesforce Inc., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 280,583 280,583 ÷ 290,820 = 0.96 0.96 × 17.67% = 17.05%
Debt and finance lease liabilities3 7,278 7,278 ÷ 290,820 = 0.03 0.03 × 2.78% × (1 – 21.00%) = 0.05%
Operating lease liability4 2,959 2,959 ÷ 290,820 = 0.01 0.01 × 3.20% × (1 – 21.00%) = 0.03%
Total: 290,820 1.00 17.13%

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

1 US$ in millions

2 Equity. See details »

3 Debt and finance lease liabilities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 294,657 294,657 ÷ 306,593 = 0.96 0.96 × 17.67% = 16.98%
Debt and finance lease liabilities3 8,774 8,774 ÷ 306,593 = 0.03 0.03 × 2.56% × (1 – 21.00%) = 0.06%
Operating lease liability4 3,162 3,162 ÷ 306,593 = 0.01 0.01 × 2.90% × (1 – 21.00%) = 0.02%
Total: 306,593 1.00 17.06%

Based on: 10-K (reporting date: 2024-01-31).

1 US$ in millions

2 Equity. See details »

3 Debt and finance lease liabilities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 182,950 182,950 ÷ 196,210 = 0.93 0.93 × 17.67% = 16.48%
Debt and finance lease liabilities3 9,773 9,773 ÷ 196,210 = 0.05 0.05 × 2.54% × (1 – 21.00%) = 0.10%
Operating lease liability4 3,487 3,487 ÷ 196,210 = 0.02 0.02 × 2.60% × (1 – 21.00%) = 0.04%
Total: 196,210 1.00 16.61%

Based on: 10-K (reporting date: 2023-01-31).

1 US$ in millions

2 Equity. See details »

3 Debt and finance lease liabilities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 195,921 195,921 ÷ 210,181 = 0.93 0.93 × 17.67% = 16.47%
Debt and finance lease liabilities3 10,871 10,871 ÷ 210,181 = 0.05 0.05 × 2.55% × (1 – 21.00%) = 0.10%
Operating lease liability4 3,389 3,389 ÷ 210,181 = 0.02 0.02 × 2.10% × (1 – 21.00%) = 0.03%
Total: 210,181 1.00 16.60%

Based on: 10-K (reporting date: 2022-01-31).

1 US$ in millions

2 Equity. See details »

3 Debt and finance lease liabilities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 196,284 196,284 ÷ 203,010 = 0.97 0.97 × 17.67% = 17.09%
Debt and finance lease liabilities3 3,118 3,118 ÷ 203,010 = 0.02 0.02 × 3.47% × (1 – 21.00%) = 0.04%
Operating lease liability4 3,608 3,608 ÷ 203,010 = 0.02 0.02 × 2.20% × (1 – 21.00%) = 0.03%
Total: 203,010 1.00 17.16%

Based on: 10-K (reporting date: 2021-01-31).

1 US$ in millions

2 Equity. See details »

3 Debt and finance lease liabilities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 151,792 151,792 ÷ 158,265 = 0.96 0.96 × 17.67% = 16.95%
Debt and finance lease liabilities3 3,278 3,278 ÷ 158,265 = 0.02 0.02 × 3.66% × (1 – 21.00%) = 0.06%
Operating lease liability4 3,195 3,195 ÷ 158,265 = 0.02 0.02 × 2.70% × (1 – 21.00%) = 0.04%
Total: 158,265 1.00 17.05%

Based on: 10-K (reporting date: 2020-01-31).

1 US$ in millions

2 Equity. See details »

3 Debt and finance lease liabilities. See details »

4 Operating lease liability. See details »


Economic Spread Ratio

Salesforce Inc., economic spread ratio calculation, comparison to benchmarks

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)
Economic profit1 (7,516) (9,578) (11,467) (9,163) (4,740) (5,634)
Invested capital2 85,881 84,431 84,299 81,940 53,200 47,247
Performance Ratio
Economic spread ratio3 -8.75% -11.34% -13.60% -11.18% -8.91% -11.93%
Benchmarks
Economic Spread Ratio, Competitors4
Accenture PLC 3.52% 4.31% 7.16% 9.00% 9.57%
Adobe Inc. 3.75% 3.97% 9.42% 11.83% 4.10%
Cadence Design Systems Inc. -0.60% 9.51% 8.90% 9.13% 9.94%
CrowdStrike Holdings Inc. -9.59% -4.65% -0.97% -4.24% -6.50% 4.35%
International Business Machines Corp. -6.41% -2.47% -10.27% -5.21% -4.87%
Intuit Inc. -5.68% -7.73% -6.64% 1.04% 4.41%
Microsoft Corp. 12.07% 15.10% 23.06% 32.08% 30.11%
Oracle Corp. -1.23% -2.25% -1.85% 6.23% 0.58%
Palantir Technologies Inc. -20.56% -17.26% -40.92% -48.40% -88.40%
Palo Alto Networks Inc. 7.35% 13.41% 5.33% -3.36% -4.31%
ServiceNow Inc. 8.24% 7.53% 3.00% 4.21% 5.84%
Synopsys Inc. -5.26% -4.56% 2.02% -4.00% -3.82%
Workday Inc. -7.97% -9.36% -15.65% -10.43% -15.68% -19.16%

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).

1 Economic profit. See details »

2 Invested capital. See details »

3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -7,516 ÷ 85,881 = -8.75%

4 Click competitor name to see calculations.

Performance ratio Description The company
Economic spread ratio The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital. Salesforce Inc. economic spread ratio improved from 2023 to 2024 and from 2024 to 2025.

Economic Profit Margin

Salesforce Inc., economic profit margin calculation, comparison to benchmarks

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)
Economic profit1 (7,516) (9,578) (11,467) (9,163) (4,740) (5,634)
 
Revenues 37,895 34,857 31,352 26,492 21,252 17,098
Add: Increase (decrease) in unearned revenue 1,740 1,627 1,748 3,021 1,945 2,098
Adjusted revenues 39,635 36,484 33,100 29,513 23,197 19,196
Performance Ratio
Economic profit margin2 -18.96% -26.25% -34.64% -31.05% -20.43% -29.35%
Benchmarks
Economic Profit Margin, Competitors3
Accenture PLC 2.00% 2.22% 3.45% 4.61% 4.87%
Adobe Inc. 4.24% 4.97% 10.98% 14.74% 5.88%
Cadence Design Systems Inc. -0.92% 9.48% 8.88% 9.27% 10.01%
CrowdStrike Holdings Inc. -15.78% -7.30% -1.30% -6.64% -13.51% 3.82%
International Business Machines Corp. -11.34% -4.40% -17.83% -9.95% -8.47%
Intuit Inc. -8.72% -12.65% -12.78% 1.31% 4.97%
Microsoft Corp. 16.87% 17.20% 22.10% 26.62% 22.35%
Oracle Corp. -2.33% -4.35% -3.40% 12.31% 1.31%
Palantir Technologies Inc. -17.84% -9.26% -68.64% -79.72% -180.08%
Palo Alto Networks Inc. 7.80% 13.31% 6.21% -4.52% -7.00%
ServiceNow Inc. 6.78% 6.05% 2.41% 3.65% 4.76%
Synopsys Inc. -8.82% -6.43% 2.85% -6.36% -6.56%
Workday Inc. -8.47% -10.42% -19.20% -14.14% -20.46% -24.65%

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).

1 Economic profit. See details »

2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenues
= 100 × -7,516 ÷ 39,635 = -18.96%

3 Click competitor name to see calculations.

Performance ratio Description The company
Economic profit margin The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin. Salesforce Inc. economic profit margin improved from 2023 to 2024 and from 2024 to 2025.