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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Salesforce Inc., economic profit calculation

US$ in millions

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	17.14%	17.07%	16.62%	16.61%	17.17%	17.06%
Invested capital³	85,881)	84,431)	84,299)	81,940)	53,200)	47,247)

Economic profit⁴	(7,524)	(9,586)	(11,475)	(9,170)	(4,745)	(5,639)

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
= 7,196 – 17.14% × 85,881 = -7,524

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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.

Salesforce Inc., NOPAT calculation

US$ in millions

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.

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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.

Salesforce Inc., cash operating taxes calculation

US$ in millions

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).

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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.

Salesforce Inc., invested capital calculation (financing approach)

US$ in millions

	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.

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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.

Salesforce Inc., cost of capital calculations

Jan 31, 2025

	Capital (fair value)¹	Weights					Cost of capital
Equity²	280,583)	280,583)	÷	290,820)	=	0.96	0.96	×	17.68%	=	17.06%
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					17.14%

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 »

Jan 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	294,657)	294,657)	÷	306,593)	=	0.96	0.96	×	17.68%	=	16.99%
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					17.07%

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 »

Jan 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	182,950)	182,950)	÷	196,210)	=	0.93	0.93	×	17.68%	=	16.49%
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					16.62%

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 »

Jan 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	195,921)	195,921)	÷	210,181)	=	0.93	0.93	×	17.68%	=	16.48%
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					16.61%

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 »

Jan 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	196,284)	196,284)	÷	203,010)	=	0.97	0.97	×	17.68%	=	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					17.17%

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 »

Jan 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	151,792)	151,792)	÷	158,265)	=	0.96	0.96	×	17.68%	=	16.96%
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					17.06%

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 »

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

	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	(7,524)	(9,586)	(11,475)	(9,170)	(4,745)	(5,639)
Invested capital²	85,881)	84,431)	84,299)	81,940)	53,200)	47,247)
Performance Ratio
Economic spread ratio³	-8.76%	-11.35%	-13.61%	-11.19%	-8.92%	-11.93%
Benchmarks
Economic Spread Ratio, Competitors⁴
Accenture PLC	—	3.51%	4.30%	7.16%	8.99%	9.57%
Adobe Inc.	—	3.73%	3.96%	9.41%	11.81%	4.09%
Cadence Design Systems Inc.	—	-0.60%	9.52%	8.91%	9.13%	9.94%
CrowdStrike Holdings Inc.	-9.59%	-4.65%	-0.97%	-4.24%	-6.51%	4.34%
International Business Machines Corp.	—	-6.39%	-2.45%	-10.25%	-5.20%	-4.86%
Intuit Inc.	—	-5.68%	-7.73%	-6.64%	1.03%	4.41%
Microsoft Corp.	—	12.08%	15.12%	23.07%	32.09%	30.12%
Oracle Corp.	—	-1.22%	-2.24%	-1.85%	6.23%	0.58%
Palantir Technologies Inc.	—	-20.67%	-17.37%	-41.03%	-48.51%	-88.51%
Palo Alto Networks Inc.	—	7.35%	13.40%	5.33%	-3.36%	-4.31%
ServiceNow Inc.	—	8.24%	7.53%	3.01%	4.22%	5.84%
Synopsys Inc.	—	-5.26%	-4.56%	2.03%	-3.99%	-3.81%
Workday Inc.	-7.98%	-9.37%	-15.66%	-10.44%	-15.69%	-19.17%

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 × -7,524 ÷ 85,881 = -8.76%

⁴ Click competitor name to see calculations.

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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.

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

	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	(7,524)	(9,586)	(11,475)	(9,170)	(4,745)	(5,639)

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	-18.98%	-26.27%	-34.67%	-31.07%	-20.45%	-29.37%
Benchmarks
Economic Profit Margin, Competitors³
Accenture PLC	—	1.99%	2.21%	3.45%	4.61%	4.87%
Adobe Inc.	—	4.23%	4.96%	10.96%	14.72%	5.87%
Cadence Design Systems Inc.	—	-0.91%	9.48%	8.89%	9.28%	10.01%
CrowdStrike Holdings Inc.	-15.78%	-7.30%	-1.31%	-6.64%	-13.52%	3.81%
International Business Machines Corp.	—	-11.31%	-4.37%	-17.81%	-9.92%	-8.45%
Intuit Inc.	—	-8.73%	-12.66%	-12.78%	1.31%	4.96%
Microsoft Corp.	—	16.88%	17.21%	22.11%	26.63%	22.36%
Oracle Corp.	—	-2.32%	-4.34%	-3.39%	12.32%	1.32%
Palantir Technologies Inc.	—	-17.93%	-9.32%	-68.83%	-79.90%	-180.30%
Palo Alto Networks Inc.	—	7.80%	13.31%	6.21%	-4.52%	-7.00%
ServiceNow Inc.	—	6.78%	6.06%	2.42%	3.65%	4.77%
Synopsys Inc.	—	-8.81%	-6.43%	2.86%	-6.36%	-6.55%
Workday Inc.	-8.48%	-10.43%	-19.21%	-14.15%	-20.48%	-24.67%

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 × -7,524 ÷ 39,635 = -18.98%

³ Click competitor name to see calculations.

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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.

Salesforce Inc. (NYSE:CRM)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin