Salesforce

Salesforce has a very solid balance sheet and cash flow. It generated record operating cash flow ($13.1B, +28%) and free cash flow ($12.4B, +31%) in FY25. This high cash generation dwarfs its debt. As of Jan 2025 it held $14.0B in cash and equivalents) against $6.6B of long-term debt). Net debt is thus minimal relative to cash flows.

The company could pay off all debt in about half a year of cash flow. Strong credit metrics and no immediate maturity walls ensure resilience. Cash is primarily held in safe instruments (investment grade). We see negligible risk of default.

Overall, Salesforce’s financial position is excellent and it can freely invest or return capital while staying well-funded through downturns.