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Is the business good?
How good a business is CRM?
Salesforce earns 10% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
10%
Return on invested capital · cost of capital 9.0% · 1.4 points above what the capital costs: growth creates value
- Operating margin
- 20%
Operating margin · Software - Application median 8.3% · 12 months to Q2 2027
- Cash conversion
- 1.57×
Cash conversion · 1.88× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −15%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 2.1% |
| FY2022 | 2.1% |
| FY2023 | 3.3% |
| FY2024 | 14% |
| FY2025 | 19% |
| FY2026 | 20% |
Details›
- Gross margin12 months to Q2 2027
- 77%
- Operating margin12 months to Q2 2027
- 20%
- Net margin12 months to Q2 2027
- 22%
- Free cash flow margin
- 34%
- R&D as % of revenue
- 14%
- Revenue, trailing twelve months
- $43.9B
- Free cash flow, trailing twelve months
- $15.2B
- Net income, trailing twelve months
- $9.66B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
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