Complete a case study for CRM (SalesForce.com vs. Seibel) Matrices, which must be exhibits/attachments in the appendix and not part of the body of the analysis (The Strategy Club has excellent...

Assignment Solution
Salesforce.com
Salesforce.com is a software company which provides cloud computing solutions to enterprises (Star, Summary, 2019). The company is headquartered in San Francisco, California. The company’s main product is Salescloud, which is a customer relationship management software as a service product. It has been developing various other software and applications for businesses in the field of marketing, e-commerce and data integration.
Financial Analysis
The stock price of the company was $155-$163 in the past month. Salesforce has a market capitalization of $120.86 billion and a P/E ratio of 108.48. The company recorded revenue of $10.48 billion in 2018.
The financials of Salesforce are shown in the figure below:
The asset size of company increased by 19.43%, 37.69% and 19.68% in 2016, 2017 and 2018 respectively. However the percentage increase in the property, plant and equipment decreased over the given period. This is due to the fact that the company has intangible asset value in the form of software and services and does not require much investment in property and similar type of assets. The stockholder’s equity increased at a greater rate year on year with 25.86%, 49.91% and 25.23% from 2016, 2017, and 2018 respectively.
The revenue showed an impressive growth over the years with 24.16%, 25.87% and 24.88% in 2016, 2017, and 2018 respectively. Gross profit increased by 25.14% in 2018 when compared to 2017. However the net income decreased by 29.44% in 2018. This is because in 2017, the company had income tax credit of $154 million while the company had to pay income tax of $75 million in 2018. This led to the decrease in net income in 2018.
Key financial ratios are given in the table below:
    Ratio Analysis
    2016
    2017
    2018
    Average
    
    
    
    
    
    Return on Equity
    -1.0%
    2.9%
    1.5%
    1.11%
    
    
    
    
    
    Return on Assets
    0.060%
    1.6%
    1.0%
    0.89%
    
    
    
    
    
    Return on Assets
    
    
    
    
    Return on Sales
    0.105%
    2.9%
    1.8%
    1.63%
    Asset turnover
    0.57
    0.55
    0.54
    55.48%
    
    
    
    
    
    Profitability
    
    
    
    
    Gross margin
    75.2%
    73.4%
    73.5%
    74.03%
    SG&A as % of Sales
    59.3%
    58.2%
    56.5%
    57.98%
    Operating Margin
    1.7%
    0.8%
    2.3%
    1.58%
    
    
    
    
    
    Days Turnover Ratios
    
    
    
    
    Days Receivables
    120.5
    123.8
    123.9
    122.73
    Days Inventory
    48.2
    40.2
    37.0
    41.78
    Days Payables
    17.9
    15.2
    12.3
    15.10
    Net Trade Cycle
    150.8
    148.8
    148.6
    149.41
    
    
    
    
    
    Liquidity Analysis
    
    
    
    
    Current Ratio
    0.77
    0.83
    0.92
    0.84
    Quick Ratio
    0.65
    0.66
    0.64
    0.65
    Interest Coverage
    9.47
    -8.26
    23.84
    8.35
    Debt to Equity
    1.55
    1.34
    1.24
    1.38
The average...