Salesforce Return On Asset vs. Revenue

FOO Stock  EUR 330.30  6.30  1.94%   
Based on the measurements of profitability obtained from Salesforce's financial statements, Salesforce may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Salesforce's ability to earn profits and add value for shareholders.
For Salesforce profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Salesforce to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Salesforce utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Salesforce's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Salesforce over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Salesforce Stock please use our How to Invest in Salesforce guide.
Please note, there is a significant difference between Salesforce's value and its price as these two are different measures arrived at by different means. Investors typically determine if Salesforce is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Salesforce's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Salesforce Revenue vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Salesforce's current stock value. Our valuation model uses many indicators to compare Salesforce value to that of its competitors to determine the firm's financial worth.
Salesforce is one of the top stocks in return on asset category among its peers. It also is rated as one of the top companies in revenue category among its peers totaling about  7,569,142,857,143  of Revenue per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Salesforce's earnings, one of the primary drivers of an investment's value.

Salesforce Revenue vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Salesforce

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0035
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Salesforce

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
26.49 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Salesforce Revenue vs Competition

Salesforce is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Software—Application industry is currently estimated at about 292.47 Billion. Salesforce holds roughly 26.49 Billion in revenue claiming about 9% of equities listed under Software—Application industry.

Salesforce Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Salesforce, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Salesforce will eventually generate negative long term returns. The profitability progress is the general direction of Salesforce's change in net profit over the period of time. It can combine multiple indicators of Salesforce, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management worldwide. The company was founded in 1999 and is headquartered in San Francisco, California. SALESFORCE COM operates under SoftwareApplication classification in Germany and is traded on Frankfurt Stock Exchange. It employs 59895 people.

Salesforce Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Salesforce. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Salesforce position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Salesforce's important profitability drivers and their relationship over time.

Use Salesforce in pair-trading

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.

Salesforce Pair Trading

Salesforce Pair Trading Analysis

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 Salesforce 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 Salesforce 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 CorrelationCorrelation Matching

Use Investing Themes to Complement your Salesforce position

In addition to having Salesforce in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Insurance Providers Thematic Idea Now

Insurance Providers
Insurance Providers Theme
Companies providing all types of insurance and insurance services. The Insurance Providers theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Insurance Providers Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Salesforce Stock

When determining whether Salesforce is a strong investment it is important to analyze Salesforce's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Salesforce's future performance. For an informed investment choice regarding Salesforce Stock, refer to the following important reports:
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For more detail on how to invest in Salesforce Stock please use our How to Invest in Salesforce guide.
You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
To fully project Salesforce's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Salesforce at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Salesforce's income statement, its balance sheet, and the statement of cash flows.
Potential Salesforce investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Salesforce investors may work on each financial statement separately, they are all related. The changes in Salesforce's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Salesforce's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.