Financial statement analysis and common stock valuation

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Analysis of Solvency Ratios
Quarterly Data

Examines Oracle Corp. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Capital
• Debt to Assets
• Financial Leverage
• Interest Coverage

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Oracle Corp. assets. Operating performance ratios describe the relationship between the Oracle Corp. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Analysis of Profitability Ratios
Quarterly Data

Measures the income of Oracle Corp. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Common Stock Valuation Ratios
Quarterly Data

Relative valuation technique determine the value of Oracle Corp. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about Oracle Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Oracle Corp. balance sheet.

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Oracle Corp..

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently Oracle Corp. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by Oracle Corp..