Salesforce Inc. (NYSE:CRM)

The analysis of key profitability and leverage ratios over the observed periods reveals notable fluctuations and trends.

Return on Assets (ROA)

ROA showed a negative start at -0.31% in April 2020 but quickly improved, peaking at 6.85% in April 2021. Subsequently, ROA experienced a gradual decline, reaching its lowest level of 0.21% by January 2023. From this low point, a steady recovery trend emerged, with ROA increasing consistently through 2023 and into 2024, ultimately reaching 7.59% by October 2024. This pattern suggests an initial recovery period followed by a phase of operational challenges, and then a sustained improvement in asset utilization efficiency.

Financial Leverage

Financial leverage remained relatively stable throughout the given timeframe, fluctuating between 1.47 and 1.69. The ratio demonstrated minor short-term variations but no clear upward or downward long-term trend. The leverage ratio slightly increased from 1.55 in April 2020 to a peak near 1.69 in January 2023, followed by a gentle decline to around 1.59 by October 2024. This stability indicates consistent capital structure management without significant changes in debt levels relative to equity.

Return on Equity (ROE)

ROE closely mirrored the trend observed in ROA but with greater magnitude. Starting from a negative value of -0.48% in April 2020, ROE rose sharply to 10.44% by April 2021. After this peak, it declined gradually to a trough near 0.36% in January 2023. Following this period, ROE exhibited a robust recovery with steady growth, reaching a high of 12.03% by October 2024. The ROE trajectory indicates volatility initially, followed by a period of strengthening profitability for equity holders, likely reflecting both improved operational performance and stable leverage.

Overall, the data suggests the company experienced an initial phase of increased profitability and return improvements, followed by a period of weakening returns around early 2023. Since then, both returns on assets and equity have recovered strongly, reaching their highest levels within the dataset by late 2024. Meanwhile, financial leverage has remained comparatively stable, implying that changes in profitability are more attributable to operational performance rather than alterations in financial risk.

The analysis of the quarterly financial ratios over the observed periods reveals several noteworthy trends in profitability, efficiency, leverage, and overall return to equity shareholders.

Net Profit Margin (%)

The net profit margin exhibited significant fluctuations throughout the timeline. Initially, the margin was negative at -0.92%, indicating a loss, but it sharply improved to a peak of 19.87% by April 2021. Subsequently, the margin declined considerably, reaching a low of 0.66% in January 2023. However, from early 2023 onwards, a recovery trend emerged, with margins progressively increasing to reach approximately 17.91% by October 2025. This pattern suggests an initial period of strong profitability growth, followed by a contraction possibly due to increased costs or other factors, and then a renewed improvement in profitability towards the later periods.

Asset Turnover (ratio)

The asset turnover ratio showed relative stability with modest variation. Starting at 0.34, the ratio slightly dipped to a low of 0.27 in July 2021, suggesting a temporary reduction in asset utilization efficiency. After that, a gradual upward trend was observed, reaching 0.42 in October 2025. This indicates improved effectiveness in using assets to generate revenue, especially in the latter stages of the timeline.

Financial Leverage (ratio)

Financial leverage ratios fluctuated moderately within the range of approximately 1.47 to 1.69, without any clear growing or decreasing trend. The leverage ratio began near 1.55 and saw a few rises and falls, peaking around 1.69 in January 2023 before slightly decreasing and stabilizing close to 1.59 by October 2025. This suggests a stable capital structure, with consistent reliance on debt relative to equity over time.

Return on Equity (ROE) (%)

Return on equity presented a pattern paralleling that of net profit margin but at generally lower levels. It started negative at -0.48%, indicative of losses or negative returns early on. ROE improved gradually, reaching double-digit values (above 10%) by April 2021, then fell notably to as low as 0.36% by January 2023. A recovery phase followed, with ROE climbing steadily to 12.03% by October 2025. This recovery highlights improving profitability and effective use of shareholders’ equity over the later periods.

Overall, the financial ratios depict an entity recovering from initial difficulties or transitional phases in profitability and returns, improving asset efficiency gradually, while maintaining a stable financial leverage profile. The renewed upward trends in both net profit margin and ROE in recent periods suggest enhanced operational performance and value creation for shareholders.

The financial analysis over the given periods reveals notable trends in Salesforce Inc.'s profitability and efficiency metrics.

Net Profit Margin (%)

The net profit margin experienced significant fluctuations initially, starting with a negative value at the beginning of the timeline. It rose sharply to peak around the early 2021 period, followed by a period of decline throughout 2021 and early 2022. Beginning mid-2022, the margin exhibited a steady recovery with a consistently positive upward trajectory, reaching new heights by the end of the timeline. This suggests that profitability, after some instability, has improved substantially with enhanced operational management or revenue growth relative to expenses.

Asset Turnover (ratio)

Asset turnover remained relatively stable but displayed moderate variation across the periods. Initially consistent around 0.34, the ratio dipped in the middle 2021 period, indicative of either asset growth outpacing sales or diminished sales efficiency. From late 2021 onward, the ratio demonstrated a general upward trend, peaking at a higher level than the start, which signals improved utilization of assets to generate sales over time.

Return on Assets (ROA) (%)

ROA mirrored the net profit margin trend, beginning with a negative value and then increasing substantially to reach a peak in early 2021. This was followed by a decline during mid to late 2021 and early 2022, indicating a period of reduced overall asset profitability. From mid-2022 onwards, ROA showed a consistent recovery trend, improving steadily and reaching higher values toward the end of the analyzed period. This pattern points to a gradual enhancement in the efficiency and profitability of the company’s asset base.

Overall, the data shows an initial period of volatility in profitability and asset utilization, followed by a phase of recovery and improvement in both profit margin and asset efficiency metrics. The company appears to have strengthened its ability to generate profit relative to sales and assets, signaling improved operational effectiveness in recent quarters.