Salesforce Net Income vs Free Cash Flow Analysis

CRM Stock

26.72 0.17 0.63%

Salesforce financial indicator trend analysis is much more than just breaking down SalesforceCom CDR prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether SalesforceCom CDR is a good investment. Please check the relationship between Salesforce Net Income and its Free Cash Flow accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in SalesforceCom CDR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.

Net Income vs Free Cash Flow

Net Income vs Free Cash Flow Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of SalesforceCom CDR Net Income account and Free Cash Flow. At this time, the significance of the direction appears to have fragmental relationship.

The correlation between Salesforce's Net Income and Free Cash Flow is 0.57. Overlapping area represents the amount of variation of Net Income that can explain the historical movement of Free Cash Flow in the same time period over historical financial statements of SalesforceCom CDR, assuming nothing else is changed. The correlation between historical values of Salesforce's Net Income and Free Cash Flow is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Income of SalesforceCom CDR are associated (or correlated) with its Free Cash Flow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow has no effect on the direction of Net Income i.e., Salesforce's Net Income and Free Cash Flow go up and down completely randomly.

Correlation Coefficient

0.57

Relationship Direction	Positive
Relationship Strength	Weak

View All Relationships

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in SalesforceCom CDR financial statement analysis. It represents the amount of money remaining after all of SalesforceCom CDR operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Most indicators from Salesforce's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into SalesforceCom CDR current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in SalesforceCom CDR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.As of the 20th of December 2024, Tax Provision is likely to grow to about 854.7 M, while Selling General Administrative is likely to drop about 13.7 B.

	2021	2022	2023	2024 (projected)
Gross Profit	19.5B	23.0B	26.3B	19.7B
Total Revenue	26.5B	31.4B	34.9B	26.5B

Gross Profit Total Revenue

Salesforce fundamental ratios Correlations

	Total Assets	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Other Liab	Net Tangible Assets	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Non Currrent Assets Other	Other Assets	Long Term Debt	Net Receivables	Good Will	Common Stock Shares Outstanding	Short Term Investments	Non Current Liabilities Total	Other Current Assets	Other Stockholder Equity	Total Liab	Deferred Long Term Liab	Net Invested Capital	Long Term Investments	Short Long Term Debt
Total Assets		0.97	0.99	1.0	0.99	0.5	0.6	0.94	0.77	0.95	1.0	0.92	0.97	0.89	0.99	1.0	0.97	0.95	0.98	0.97	-0.89	0.99	0.95	1.0	0.98	0.76
Other Current Liab	0.97		0.99	0.96	0.97	0.43	0.45	0.98	0.87	0.97	0.96	0.88	0.98	0.87	0.99	0.97	0.9	0.9	0.95	0.96	-0.91	0.98	0.99	0.97	0.95	0.85
Total Current Liabilities	0.99	0.99		0.98	0.98	0.47	0.5	0.96	0.83	0.97	0.98	0.89	0.98	0.88	1.0	0.98	0.94	0.93	0.97	0.98	-0.93	0.99	0.98	0.98	0.97	0.85
Total Stockholder Equity	1.0	0.96	0.98		0.99	0.53	0.63	0.93	0.74	0.95	1.0	0.93	0.97	0.87	0.98	0.99	0.98	0.96	0.97	0.96	-0.87	0.99	0.94	1.0	0.99	0.73
Other Liab	0.99	0.97	0.98	0.99		0.58	0.61	0.96	0.78	0.98	0.98	0.94	0.99	0.83	0.98	0.97	0.95	0.97	0.95	0.95	-0.84	0.97	0.95	0.98	0.99	0.73
Net Tangible Assets	0.5	0.43	0.47	0.53	0.58		0.66	0.47	0.17	0.63	0.46	0.68	0.55	0.08	0.46	0.41	0.59	0.74	0.35	0.41	-0.19	0.42	0.35	0.48	0.57	0.21
Net Debt	0.6	0.45	0.5	0.63	0.61	0.66		0.39	0.04	0.51	0.6	0.78	0.54	0.37	0.48	0.57	0.64	0.7	0.55	0.48	-0.26	0.52	0.39	0.6	0.6	0.1
Retained Earnings	0.94	0.98	0.96	0.93	0.96	0.47	0.39		0.91	0.97	0.93	0.84	0.98	0.83	0.97	0.93	0.88	0.9	0.91	0.92	-0.85	0.95	0.98	0.94	0.95	0.79
Accounts Payable	0.77	0.87	0.83	0.74	0.78	0.17	0.04	0.91		0.8	0.76	0.56	0.85	0.81	0.85	0.78	0.65	0.65	0.78	0.83	-0.81	0.82	0.91	0.77	0.79	0.83
Cash	0.95	0.97	0.97	0.95	0.98	0.63	0.51	0.97	0.8		0.94	0.92	0.98	0.75	0.97	0.93	0.92	0.96	0.89	0.93	-0.84	0.95	0.94	0.94	0.96	0.81
Non Current Assets Total	1.0	0.96	0.98	1.0	0.98	0.46	0.6	0.93	0.76	0.94		0.91	0.96	0.9	0.98	1.0	0.97	0.94	0.99	0.97	-0.89	0.99	0.95	1.0	0.98	0.75
Non Currrent Assets Other	0.92	0.88	0.89	0.93	0.94	0.68	0.78	0.84	0.56	0.92	0.91		0.9	0.67	0.88	0.89	0.91	0.96	0.85	0.83	-0.7	0.88	0.83	0.91	0.9	0.6
Other Assets	0.97	0.98	0.98	0.97	0.99	0.55	0.54	0.98	0.85	0.98	0.96	0.9		0.84	0.98	0.96	0.92	0.95	0.94	0.96	-0.84	0.97	0.97	0.97	0.99	0.77
Long Term Debt	0.89	0.87	0.88	0.87	0.83	0.08	0.37	0.83	0.81	0.75	0.9	0.67	0.84		0.89	0.92	0.81	0.71	0.95	0.91	-0.88	0.92	0.9	0.9	0.86	0.71
Net Receivables	0.99	0.99	1.0	0.98	0.98	0.46	0.48	0.97	0.85	0.97	0.98	0.88	0.98	0.89		0.98	0.94	0.93	0.97	0.98	-0.92	0.99	0.98	0.99	0.98	0.82
Good Will	1.0	0.97	0.98	0.99	0.97	0.41	0.57	0.93	0.78	0.93	1.0	0.89	0.96	0.92	0.98		0.96	0.92	0.99	0.97	-0.91	1.0	0.96	1.0	0.97	0.77
Common Stock Shares Outstanding	0.97	0.9	0.94	0.98	0.95	0.59	0.64	0.88	0.65	0.92	0.97	0.91	0.92	0.81	0.94	0.96		0.96	0.94	0.92	-0.85	0.95	0.87	0.97	0.96	0.68
Short Term Investments	0.95	0.9	0.93	0.96	0.97	0.74	0.7	0.9	0.65	0.96	0.94	0.96	0.95	0.71	0.93	0.92	0.96		0.88	0.9	-0.76	0.92	0.86	0.95	0.96	0.66
Non Current Liabilities Total	0.98	0.95	0.97	0.97	0.95	0.35	0.55	0.91	0.78	0.89	0.99	0.85	0.94	0.95	0.97	0.99	0.94	0.88		0.97	-0.91	0.99	0.95	0.99	0.96	0.74
Other Current Assets	0.97	0.96	0.98	0.96	0.95	0.41	0.48	0.92	0.83	0.93	0.97	0.83	0.96	0.91	0.98	0.97	0.92	0.9	0.97		-0.94	0.99	0.96	0.97	0.96	0.85
Other Stockholder Equity	-0.89	-0.91	-0.93	-0.87	-0.84	-0.19	-0.26	-0.85	-0.81	-0.84	-0.89	-0.7	-0.84	-0.88	-0.92	-0.91	-0.85	-0.76	-0.91	-0.94		-0.93	-0.91	-0.89	-0.83	-0.92
Total Liab	0.99	0.98	0.99	0.99	0.97	0.42	0.52	0.95	0.82	0.95	0.99	0.88	0.97	0.92	0.99	1.0	0.95	0.92	0.99	0.99	-0.93		0.97	0.99	0.97	0.81
Deferred Long Term Liab	0.95	0.99	0.98	0.94	0.95	0.35	0.39	0.98	0.91	0.94	0.95	0.83	0.97	0.9	0.98	0.96	0.87	0.86	0.95	0.96	-0.91	0.97		0.95	0.94	0.86
Net Invested Capital	1.0	0.97	0.98	1.0	0.98	0.48	0.6	0.94	0.77	0.94	1.0	0.91	0.97	0.9	0.99	1.0	0.97	0.95	0.99	0.97	-0.89	0.99	0.95		0.98	0.75
Long Term Investments	0.98	0.95	0.97	0.99	0.99	0.57	0.6	0.95	0.79	0.96	0.98	0.9	0.99	0.86	0.98	0.97	0.96	0.96	0.96	0.96	-0.83	0.97	0.94	0.98		0.71
Short Long Term Debt	0.76	0.85	0.85	0.73	0.73	0.21	0.1	0.79	0.83	0.81	0.75	0.6	0.77	0.71	0.82	0.77	0.68	0.66	0.74	0.85	-0.92	0.81	0.86	0.75	0.71

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Salesforce Account Relationship Matchups

Salesforce fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	55.1B	66.3B	95.2B	98.8B	99.8B	81.8B
Other Current Liab	10.7B	12.6B	15.6B	18.0B	20.7B	14.4B
Total Current Liabilities	14.8B	17.7B	21.8B	25.9B	26.6B	21.7B
Total Stockholder Equity	33.9B	41.5B	58.1B	58.4B	59.6B	49.0B
Other Liab	946M	1.5B	1.7B	1.7B	2.0B	1.4B
Net Tangible Assets	4.0B	11.1B	1.2B	2.7B	3.1B	4.2B
Retained Earnings	1.9B	5.9B	7.4B	7.6B	11.7B	6.6B
Accounts Payable	1.9B	2.6B	3.0B	3.3B	3.8B	2.9B
Cash	4.1B	6.2B	5.5B	7.0B	8.5B	6.2B
Non Current Assets Total	39.2B	44.4B	72.4B	72.5B	70.7B	58.5B
Other Assets	1.9B	4.4B	5.0B	5.5B	6.3B	4.0B
Net Receivables	6.2B	7.8B	9.7B	10.8B	11.4B	9.4B
Good Will	25.1B	26.3B	47.9B	48.6B	48.6B	38.4B
Common Stock Shares Outstanding	893M	919M	989M	981M	971M	1.0B
Short Term Investments	3.8B	5.8B	5.1B	5.5B	5.7B	5.0B
Non Current Liabilities Total	6.4B	7.1B	15.3B	14.6B	13.5B	11.1B
Other Current Assets	926M	1.1B	1.5B	1.8B	1.6B	1.4B
Other Stockholder Equity	(93M)	(42M)	(166M)	(274M)	(246.6M)	(234.3M)
Total Liab	21.2B	24.8B	37.1B	40.5B	40.2B	32.8B
Deferred Long Term Liab	1.3B	1.7B	2.3B	2.7B	3.1B	2.1B
Net Invested Capital	36.6B	44.2B	68.7B	69.0B	69.1B	56.1B
Long Term Investments	2.0B	3.9B	4.8B	4.7B	4.8B	3.9B
Total Current Assets	16.0B	21.9B	22.9B	26.4B	29.1B	23.3B
Non Current Liabilities Other	1.3B	1.6B	2.0B	2.3B	2.5B	1.9B
Net Working Capital	1.1B	4.2B	1.1B	504M	2.4B	1.6B
Intangible Assets	5.3B	4.1B	9.0B	7.1B	5.3B	6.0B
Property Plant Equipment	5.4B	5.7B	5.7B	6.6B	7.6B	5.6B

Pair Trading with Salesforce

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Salesforce position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Salesforce will appreciate offsetting losses from the drop in the long position's value.

Moving together with Salesforce Stock

0.64	AAPL	Apple Inc CDR	Pair Corr
0.75	GOOG	Alphabet CDR	Pair Corr
0.88	JPM	JPMorgan Chase	Pair Corr

The ability to find closely correlated positions to Salesforce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Salesforce when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Salesforce - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling SalesforceCom CDR to buy it.

The correlation of Salesforce is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Salesforce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SalesforceCom CDR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Salesforce can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Other Information on Investing in Salesforce Stock

Balance Sheet is a snapshot of the financial position of SalesforceCom CDR at a specified time, usually calculated after every quarter, six months, or one year. Salesforce Balance Sheet has two main parts: assets and liabilities. Liabilities are the debts or obligations of Salesforce and are divided into current liabilities and long term liabilities. An asset, on the other hand, is anything of value that can be converted into cash and which Salesforce currently owns. An asset can also be divided into two categories, current and non-current.

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