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Salesforce (MIL:1CRM) EBIT : €6,772 Mil (TTM As of Oct. 2024)


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What is Salesforce EBIT?

Salesforce's earnings before interest and taxes (EBIT) for the three months ended in Oct. 2024 was €1,789 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2024 was €6,772 Mil.

EBIT or Operating Income 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 Oct. 2024 was 8.00%. Salesforce's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2024 was 137.76%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Salesforce's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Oct. 2024 was 2.10%.


Salesforce EBIT Historical Data

The historical data trend for Salesforce's EBIT 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 EBIT Chart

Salesforce Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 417.16 373.56 484.43 1,724.22 5,507.08

Salesforce Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
EBIT 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 1,473.53 1,647.81 1,600.24 1,735.20 1,789.18

Competitive Comparison of Salesforce's EBIT

For the Software - Application subindustry, Salesforce's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Salesforce's EV-to-EBIT Distribution in the Software Industry

For the Software industry and Technology sector, Salesforce's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Salesforce's EV-to-EBIT falls into.



Salesforce EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €6,772 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  (MIL:1CRM) EBIT Explanation

1. EBIT or Operating Income 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 Oct. 2024 is calculated as:

ROC % (Q: Oct. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2024 ) + Invested Capital (Q: Oct. 2024 ))/ count )
=7156.728 * ( 1 - 12.54% )/( (79383.278 + 77124.852)/ 2 )
=6259.2743088/78254.065
=8.00 %

where

Invested Capital(Q: Jul. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=84989.96 - 4812.84 - ( 11650.392 - max(0, 19362.922 - 20156.764+11650.392))
=79383.278

Invested Capital(Q: Oct. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=83900.61 - 4893.858 - ( 11710.926 - max(0, 17786.25 - 19668.15+11710.926))
=77124.852

Note: The Operating Income data used here is four times the quarterly (Oct. 2024) data.

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

Salesforce's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Oct. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2024  Q: Oct. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=7156.728/( ( (5264.62 + max(-10341.152, 0)) + (5125.194 + max(-9303.93, 0)) )/ 2 )
=7156.728/( ( 5264.62 + 5125.194 )/ 2 )
=7156.728/5194.907
=137.76 %

where Working Capital is:

Working Capital(Q: Jul. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4970.502 + 0 + 3535.87) - (4812.84 + 14034.684 + 0)
=-10341.152

Working Capital(Q: Oct. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4352.238 + 0 + 3604.986) - (4893.858 + 12367.296 + 0)
=-9303.93

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Oct. 2024) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Salesforce's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Oct. 2024 )
=6772.44/322490.945
=2.10 %

* 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 EBIT 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.

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