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CRM (Salesforce) Operating Income : $7,666 Mil (TTM As of Jan. 2025)


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What is Salesforce Operating Income?

Salesforce's Operating Income for the three months ended in Jan. 2025 was $2,118 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2025 was $7,666 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Salesforce's Operating Income for the three months ended in Jan. 2025 was $2,118 Mil. Salesforce's Revenue for the three months ended in Jan. 2025 was $9,993 Mil. Therefore, Salesforce's Operating Margin % for the quarter that ended in Jan. 2025 was 21.19%.

Good Sign:

Salesforce Inc operating margin is expanding. Margin expansion is usually a good sign.

Salesforce's 5-Year average Growth Rate for Operating Margin % was 64.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Salesforce's annualized ROC % for the quarter that ended in Jan. 2025 was 8.15%. Salesforce's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2025 was 154.37%.


Salesforce Operating Income Historical Data

The historical data trend for Salesforce's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Salesforce Operating Income Chart

Salesforce Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 455.00 548.00 1,858.00 5,999.00 7,666.00

Salesforce Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,795.00 1,717.00 1,882.00 1,949.00 2,118.00

Salesforce Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jan. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $7,666 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Salesforce  (NYSE:CRM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Salesforce's annualized ROC % for the quarter that ended in Jan. 2025 is calculated as:

ROC % (Q: Jan. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2024 ) + Invested Capital (Q: Jan. 2025 ))/ count )
=8472 * ( 1 - 14.08% )/( (84014 + 94523)/ 2 )
=7279.1424/89268.5
=8.15 %

where

Note: The Operating Income data used here is four times the quarterly (Jan. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Salesforce's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2024  Q: Jan. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=8472/( ( (5583 + max(-10135, 0)) + (5393 + max(-11706, 0)) )/ 2 )
=8472/( ( 5583 + 5393 )/ 2 )
=8472/5488
=154.37 %

where Working Capital is:

Working Capital(Q: Oct. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4741 + 0 + 3927) - (5331 + 13472 + 0)
=-10135

Working Capital(Q: Jan. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(11945 + 0 + 3750) - (6658 + 20743 + 0)
=-11706

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Salesforce's Operating Margin % for the quarter that ended in Jan. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2025 )/Revenue (Q: Jan. 2025 )
=2118/9993
=21.19 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Salesforce Operating Income Related Terms

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Salesforce Business Description

Address
415 Mission Street, 3rd Floor, Salesforce Tower, San Francisco, CA, USA, 94105
Salesforce provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
Executives
Parker Harris director, officer: Co-Founder and CTO THE LANDMARK @ ONE MARKET, SUITE 300, SAN FRANCISCO CA 94105
Sundeep G. Reddy officer: EVP & Chief Accounting Officer 6555 NORTH STATE HWY 161, IRVING TX 75039
Srinivas Tallapragada officer: President, Technology THE LANDMARK AT ONE MARKET STREET, #300, SAN FRANCISCO CA 94105
Oscar Munoz director
Sabastian Niles officer: President and CLO 415 MISSION ST, 3RD FLOOR, SAN FRANCISCO CA 94105
Miguel Milano officer: President and CRO 415 MISSION ST, 3RD FLOOR, SAN FRANCISCO CA 94105
Brian Millham officer: President and COO 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 90403
Amy E Weaver officer: EVP, General Counsel THE LANDMARK @ ONE MARKET STREET #300, SAN FRANCISCO CA 94105
Robin L Washington director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
G Mason Morfit director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Marc Benioff director, officer: Chairman of the Board & CEO 50 FREMONT STREET, SAN FRANCISCO CA 94105
Webb Maynard G Jr director 16541 CYPRESS WAY, LOS GATOS CA 95030
Craig Conway director SALESFORCE TOWER, 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
Brent Hyder officer: President/Chief People Officer 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
Neelie Kroes director VAN BRONCKHORSTLAAN, 2242 PZ WASSENAAR, NETHERLANDS P8 99999