Capital Intensity
Score how much of a company is physical plant, inventory, and equipment, whether that base is being maintained, and whether the shares have tangible backing.
Salesforce.com Inc
Physical assets are 4.6% of total assets, a light footprint. Capex is 0.16x depreciation while free cash flow yield is positive, which can mean an aging base that is still throwing off cash. ROIC is 10.5%, above an 8% cost-of-capital hurdle.
Technology and communication names are often asset-light, with fixed-asset turnover above 5x. This name is at 8.11x.
Physical asset ratio
4.6%
Net PP&E plus inventory, divided by total assets. Above 50% is a heavy footprint.
Fixed asset turnover
8.11x
Revenue per dollar of the physical asset base.
Capex / D&A
0.16x
Above 1.0x means the physical base is being replaced or expanded.
Tangible book / share
-$5.87
Assets minus goodwill, intangibles, and liabilities, per share.
Price / tangible book
—
Price $240.82.
Fixed-charge coverage
2.90x
EBITDA minus capex, divided by interest plus short-term debt.
FCF yield
7.1%
Latest free cash flow divided by current market cap ($203.07B).
ROIC
10.5%
After-tax operating income over equity plus debt minus cash.
Operating income / net PP&E is 1.74x.
Footprint and return
Turnover and reinvestment
| Year | Physical | FAT | Capex/D&A | TBV/sh | Coverage | FCF | ROIC | EBIT/PP&E |
|---|---|---|---|---|---|---|---|---|
| 2019 | 9.2% | 6.48x | 0.62x | $0.88 | 11.66x | $2.80B | 3.7% | 0.26x |
| 2020 | 11.5% | 3.16x | 0.30x | $4.06 | 1.97x | $3.69B | 0.4% | 0.04x |
| 2021 | 10.3% | 3.75x | 0.25x | $11.89 | 0.48x | $4.09B | 1.4% | 0.08x |
| 2022 | 7.5% | 4.65x | 0.22x | $1.25 | 8.72x | $5.28B | 2.9% | 0.33x |
| 2023 | 8.5% | 4.76x | 0.21x | $2.67 | 4.03x | $6.31B | 2.9% | 0.44x |
| 2024 | 6.1% | 5.76x | 0.19x | $5.84 | — | $9.50B | 7.2% | 0.83x |
| 2025 | 5.2% | 7.03x | 0.19x | $5.61 | 12.32x | $12.43B | 10.3% | 1.34x |
| 2026 | 4.6% | 8.11x | 0.16x | -$5.87 | 2.90x | $14.40B | 10.5% | 1.74x |
- Inventory was missing and treated as zero in the physical asset ratio.
- Receivables are larger than the physical asset base, so a finance or credit book may sit outside the physical ratio and inside the debt used for coverage.
- Principal due is the current portion of debt.
Latest year inputs (2026)
Net PP&E: $5.12B
Inventory: $0.00
Total assets: $112.31B
Goodwill: $57.94B
Intangibles: $6.82B
Liabilities: $53.16B
Tangible book: -$5.61B
Shares: 956,000,000
Revenue: $41.53B
Capex: $594.00M
D&A: $3.63B
EBITDA: $13.15B
Interest: $324.00M
Short-term debt: $4.00B
Free cash flow: $14.40B
Operating income: $8.92B
Invested capital: $66.75B
Tax rate: 21.7%