Sales Force Project
alapati
SalesforceFinancialAnalysisV1.pptx
Salesforce Financial Analysis Managerial Finance
By,
Bhargav Alaparthi
Objectives
Introduction
Salesforce Products
Salesforce Net Income & Revenue
Conclusion
Salesforce Financial Analysis
Salesforce
Salesforce.com, Inc. is an American cloud –based software company headquartered in San Francisco, California.
Salesforce provides customer-relationship management (CRM) service and also sells a complementary suite of enterprise applications on customer service, marketing automation, analytics and application development.
Salesforce Products: Cloud computing for sales, service, Analytics, health, Heroku, Artificial Intelligence, App exchange products.
Salesforce Products
Salesforce Sales Cloud
Salesforce Service Cloud
Salesforce Marketing Cloud
Salesforce Community Cloud
Salesforce Platform
Salesforce Einstein
Salesforce Commerce Cloud
Salesforce Integration Cloud
Salesforce Revenue FY20
FY20 Revenue of $17.1 Billion, up 29% Year-Over-Year, 29% in Constant Currency
Fourth Quarter Operating Cash Flow of $1.63 Billion, up 23% Year-Over-Year
Current Remaining Performance Obligation of Approximately $15.0 Billion, up 26% Year-Over-Year, 27% in Constant Currency
Remaining Performance Obligation of Approximately $30.8 Billion, up 20% Year-Over-Year
Raises Q1 FY21 Revenue Guidance to $4.875 Billion to $4.885 Billion, up Approximately 30% to 31% Year-Over-Year
Revenue by Quarter
Balance sheet ratio are the financial metrics which helps in determining the relationship between the different aspects of the company financial position.
For the 2020 financial year the current ratio is 1.07 and for the 2019 is 0.95.
Salesforce Annual Balance Sheet
Quick ratio hand measure the ability of the organization in using its quick assets to offset its current liabilities.
For instance, Salesforce.com Inc. quick ration for the financial year 2020 is 0.95 and that of 2019 is 0.82.
The company may improve this ration by paying off its creditors and lower the current liabilities.
Balance Sheet Ratio
The debt ratio for the financials year 2020 is 0.38 and that of 2019 is 2.03.
Salesforce Annual Balance Sheet
The second ratio in the solvency ratio is the debt to equity ratio.
The company records debt to equity ratio of 0.63 in the year 2020 and 0.97 in the financial year 2019.
Salesforce Annual Balance Sheet
Salesforce.com Income Statement
Return on Equity Ratio: For 2020, financial year the company has 3.71% and for 2019, the company recorded is 7.11%.
Return on Asset Ratio: For 2020, the return on assets was 0.30% and that of 2019 was 0.41%.
Salesforce Annual Income Statement
Salesforce Revenue Comparison by Year
Salesforce, Inc. revenue for the quarter ending January 31, 2020 was $4.851B, a 34.64% increase year-over-year.
Salesforce, Inc. revenue for the twelve months ending January 31, 2020 was $17.098B, a 28.73% increase year-over-year.
Salesforce, Inc. annual revenue for 2020 was $17.098B, a 28.73% increase from 2019.
Salesforce, Inc. annual revenue for 2019 was $13.282B, a 26.02% increase from 2018.
Salesforce, Inc. annual revenue for 2018 was $10.54B, a 24.93% increase from 2017.
In conclusion, Salesforce.com Inc. is viable to perform better in the future
The company has better financials and with assets it has its able to perform better in the future
The company has recorded a lower ratio in the current financial year hence there is need to improve on this ratios.
The management need to evaluate its operation to reduce the expenses incurred in the organization as this would also aim at improving the profitability of the organization
The company should also take a good analysis of the opportunities in the market from the SWOT analysis utilize them.
Conclusion
https://investor.salesforce.com/financials/default.aspx
https://s23.q4cdn.com/574569502/files/doc_financials/2019/Salesforce-FY-2019-Annual-Report.pdf
Fai, L. K., Siew, L. W., & Hoe, L. W. (2016). Financial analysis on the company performance in Malaysia with multi-criteria decision making model. Systems Science and Applied Mathematics, 1(1), 1-7.
Robinson, T. R. (2020). International financial statement analysis. John Wiley & Sons.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research, 10(51).
References
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