Salesforce Revenue vs. Retained Earnings
| CRM Stock | USD 271.92 4.40 1.59% |
Total Revenue | First Reported 2002-04-30 | Previous Quarter 8.7 B | Current Value 9.3 B | Quarterly Volatility 2.7 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.6 | 0.6742 |
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For Salesforce profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Salesforce to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Salesforce utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Salesforce's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Salesforce over time as well as its relative position and ranking within its peers.
Salesforce |
Is Salesforce's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Salesforce. If investors know Salesforce will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Salesforce listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 4.952 | Earnings Share 4.19 | Revenue Per Share 35.787 | Quarterly Revenue Growth 0.108 | Return On Assets 0.0377 |
The market value of Salesforce is measured differently than its book value, which is the value of Salesforce that is recorded on the company's balance sheet. Investors also form their own opinion of Salesforce's value that differs from its market value or its book value, called intrinsic value, which is Salesforce's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Salesforce's market value can be influenced by many factors that don't directly affect Salesforce's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Salesforce's value and its price as these two are different measures arrived at by different means. Investors typically determine if Salesforce is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Salesforce's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Salesforce Retained Earnings vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Salesforce's current stock value. Our valuation model uses many indicators to compare Salesforce value to that of its competitors to determine the firm's financial worth. Salesforce is the top company in revenue category among related companies. It is number one stock in retained earnings category among related companies reporting about 0.34 of Retained Earnings per Revenue. The ratio of Revenue to Retained Earnings for Salesforce is roughly 2.97 . At this time, Salesforce's Total Revenue is very stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Salesforce by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Salesforce's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Salesforce's earnings, one of the primary drivers of an investment's value.Salesforce Revenue vs. Competition
Salesforce is the top company in revenue category among related companies. Market size based on revenue of Information Technology industry is currently estimated at about 35.53 Billion. Salesforce totals roughly 34.86 Billion in revenue claiming about 98% of equities under Information Technology industry.
Salesforce Retained Earnings vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Salesforce |
| = | 34.86 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
Salesforce |
| = | 11.72 B |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
Salesforce Retained Earnings Comparison
Salesforce is currently under evaluation in retained earnings category among related companies.
Salesforce Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Salesforce, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Salesforce will eventually generate negative long term returns. The profitability progress is the general direction of Salesforce's change in net profit over the period of time. It can combine multiple indicators of Salesforce, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -225 M | -213.8 M | |
| Operating Income | 6 B | 6.3 B | |
| Income Before Tax | 5 B | 5.2 B | |
| Total Other Income Expense Net | -1 B | -996.5 M | |
| Net Income | 4.1 B | 4.3 B | |
| Income Tax Expense | 814 M | 854.7 M | |
| Net Income Applicable To Common Shares | 239.2 M | 388.6 M | |
| Net Income From Continuing Ops | 4.1 B | 4.3 B | |
| Non Operating Income Net Other | -333 M | -316.4 M | |
| Interest Income | 40.2 M | 38.2 M | |
| Net Interest Income | -330.1 M | -313.5 M | |
| Change To Netincome | 4 B | 4.2 B | |
| Net Income Per Share | 4.25 | 4.46 | |
| Income Quality | 2.47 | 2.35 | |
| Net Income Per E B T | 0.84 | 0.80 |
Salesforce Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Salesforce. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Salesforce position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Salesforce's important profitability drivers and their relationship over time.
Use Salesforce in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Salesforce position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Salesforce will appreciate offsetting losses from the drop in the long position's value.Salesforce Pair Trading
Salesforce Pair Trading Analysis
The ability to find closely correlated positions to Salesforce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Salesforce when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Salesforce - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Salesforce to buy it.
The correlation of Salesforce is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Salesforce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Salesforce moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Salesforce can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Salesforce position
In addition to having Salesforce in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Office Supplies Thematic Idea Now
Office Supplies
Companies producing and selling office supplies, and accessories. The Office Supplies theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Office Supplies Theme or any other thematic opportunities.
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Check out Trending Equities. To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.You can also try the AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for Salesforce Stock analysis
When running Salesforce's price analysis, check to measure Salesforce's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Salesforce is operating at the current time. Most of Salesforce's value examination focuses on studying past and present price action to predict the probability of Salesforce's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Salesforce's price. Additionally, you may evaluate how the addition of Salesforce to your portfolios can decrease your overall portfolio volatility.
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To fully project Salesforce's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Salesforce at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Salesforce's income statement, its balance sheet, and the statement of cash flows.