CRMNEUTRAL

Return on Equity (ROE)

16.9%

Higher than 66% of Technology sector peers

Updated 533h ago

Sector Performance

66th percentile

CRM

16.9%

Sector Median

8.2%

Sector Avg

2.4%

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Deep Analysis

Return on Equity (ROE) of 16.9% means that for every dollar of shareholder equity, Salesforce generated about 17 cents in profit over the past twelve months.

This is well above the sector median of 6.5%, placing the company in the 68th percentile among technology peers—indicating stronger profitability relative to the typical firm in its industry. The year-over-year change is not available, but quarter-over-quarter ROE rose by 34.1%, from 12.6% to 16.9%, showing a sharp recent improvement. The combination of an above-median ROE level and a positive quarterly trend suggests reduced investment risk from an efficiency standpoint, though the limited trend history tempers the signal. This metric contradicts the overall NEUTRAL verdict, as the current strength and recent improvement in ROE would normally support a

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CRM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does CRM's Return on Equity (ROE) compare to its sector?

CRM's Return on Equity (ROE) of 16.9% compares to a Technology sector median of 8.2%, placing it in the 66th percentile.

Who are CRM's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), U (-20.1%), UCTT (-22.5%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.