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Salesforce.com Inc  (NYSE:CRM) Effective Interest Rate on Debt %: 0.00% (As of Apr. 2019)

Effective interest rate on debt is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Current Portion of Long-Term Debt. Salesforce.com Inc's annualized positive value of Interest Expense for the quarter that ended in Apr. 2019 was \$0 Mil. Salesforce.com Inc's average total debt for the quarter that ended in Apr. 2019 was \$4,704 Mil. Therefore, Salesforce.com Inc's annualized effective interest rate on debt for the quarter that ended in Apr. 2019 was 0.00%.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Salesforce.com Inc Annual Data

 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Effective Interest Rate on Debt %     3.11 3.41 3.68 3.86 6.29

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Salesforce.com Inc Distribution

* The bar in red indicates where Salesforce.com Inc's Effective Interest Rate on Debt % falls into.

Calculation

Salesforce.com Inc's annualized Effective Interest Rate on Debt for the fiscal year that ended in Jan. 2019 is calculated as

 Effective Interest Rate on Debt = -1  *  Interest Expense / ( (Total Debt  (A: Jan. 2018 ) + Total Debt  (A: Jan. 2019 )) / 2 ) = -1  *  -154 / ( (1720 + 3176) / 2 ) = -1  *  -154 / 2448 = 6.29 %

where

 Total Debt  (A: Jan. 2018 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = 695 + 1025 = 1720

 Total Debt  (A: Jan. 2019 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = 3173 + 3 = 3176

Salesforce.com Inc's annualized Effective Interest Rate on Debt for the quarter that ended in Apr. 2019 is calculated as

 Effective Interest Rate on Debt = -1  *  Interest Expense / ( (Total Debt  (Q: Jan. 2019 ) + Total Debt  (Q: Apr. 2019 )) / 2 ) = -1  *  0 / ( (3176 + 6231) / 2 ) = -1  *  0 / 4703.5 = 0.00 %

where

 Total Debt  (Q: Jan. 2019 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = 3173 + 3 = 3176

 Total Debt  (Q: Apr. 2019 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = 5556 + 675 = 6231

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual effective interest rate on debt, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Apr. 2019) interest expense data. Effective Interest Rate on Debt is displayed in the 30-year financial page.

Explanation

Effective interest rate on debt measures the usage rate that a borrower actually pays on a debt.

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