Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Oracle Corp., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Federal	625)	709)	516)	1,616)	979)	8,329)
State	398)	186)	233)	19)	300)	264)
Foreign	1,767)	1,183)	929)	1,144)	1,097)	1,084)
Current provision	2,790)	2,078)	1,678)	2,779)	2,376)	9,677)
Federal	(2,193)	(1,661)	8,631)	(983)	483)	(614)
State	(398)	(139)	(77)	50)	(28)	(13)
Foreign	424)	654)	(10,979)	82)	(1,646)	16)
Deferred benefit	(2,167)	(1,146)	(2,425)	(851)	(1,191)	(611)
Provision for (benefit from) income taxes	623)	932)	(747)	1,928)	1,185)	9,066)

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

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Item	Description	The company
Current provision	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Oracle Corp. current provision increased from 2021 to 2022 and from 2022 to 2023.
Deferred benefit	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Oracle Corp. deferred benefit increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Provision for (benefit from) income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Oracle Corp. provision for (benefit from) income taxes increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Oracle Corp., effective income tax rate (EITR) reconciliation

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
U.S. federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	29.20%
Effective income tax expense (benefit) rate, before impact of the Tax Act of 2017	6.80%	12.20%	-5.70%	16.00%	12.80%	16.30%
Effective income tax expense (benefit) rate	6.80%	12.20%	-5.70%	16.00%	9.70%	70.30%

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

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Item	Description	The company
Effective income tax expense (benefit) rate, before impact of the Tax Act of 2017	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Oracle Corp. effective income tax expense (benefit) rate, before impact of the Tax Act of 2017 increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Oracle Corp., components of deferred tax assets and liabilities

US$ in millions

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Accruals and allowances	928)	493)	452)	469)	541)	567)
Employee compensation and benefits	811)	818)	755)	638)	646)	789)
Differences in timing of revenue recognition	662)	623)	547)	524)	322)	310)
Lease liabilities	1,036)	688)	524)	253)	—)	—)
Basis of property, plant and equipment and intangible assets	9,989)	11,362)	12,161)	1,115)	1,238)	—)
Capitalized research and development	1,421)	—)	—)	—)	—)	—)
Tax credit and net operating loss carryforwards	4,941)	4,409)	3,934)	3,871)	3,717)	2,614)
Other	189)	141)	—)	—)	—)	—)
Deferred tax assets	19,977)	18,534)	18,373)	6,870)	6,464)	4,280)
Valuation allowance	(1,940)	(1,742)	(1,526)	(1,359)	(1,266)	(1,308)
Deferred tax assets, net	18,037)	16,792)	16,847)	5,511)	5,198)	2,972)
Unrealized gain on stock	(79)	(78)	(78)	(78)	(78)	(78)
Acquired intangible assets	(2,124)	(126)	(266)	(561)	(973)	(1,254)
GILTI deferred	(8,124)	(8,937)	(9,883)	(1,108)	(1,515)	—)
ROU assets	(1,000)	(668)	(488)	(241)	—)	—)
Withholding taxes on foreign earnings	(256)	(232)	(195)	(171)	(91)	—)
Basis of property, plant and equipment and intangible assets	—)	—)	—)	—)	—)	(158)
Other	—)	—)	(165)	(141)	(109)	(48)
Deferred tax liabilities	(11,583)	(10,041)	(11,075)	(2,300)	(2,766)	(1,538)
Net deferred tax assets (liabilities)	6,454)	6,751)	5,772)	3,211)	2,432)	1,434)

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Oracle Corp. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets, net	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Oracle Corp. deferred tax assets, net decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Oracle Corp. net deferred tax assets (liabilities) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Oracle Corp., deferred tax assets and liabilities, classification

US$ in millions

		May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
	Non-current deferred tax assets	12,226)	12,782)	13,636)	3,252)	2,696)	1,491)
	Non-current deferred tax liabilities	5,772)	6,031)	7,864)	41)	264)	57)

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

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Item	Description	The company
Non-current deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Oracle Corp. non-current deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Non-current deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Oracle Corp. non-current deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Oracle Corp., adjustments to financial statements

US$ in millions

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Adjustment to Total Assets
Total assets (as reported)	134,384)	109,297)	131,107)	115,438)	108,709)	137,264)
Less: Noncurrent deferred tax assets, net	12,226)	12,782)	13,636)	3,252)	2,696)	1,491)
Total assets (adjusted)	122,158)	96,515)	117,471)	112,186)	106,013)	135,773)
Adjustment to Total Liabilities
Total liabilities (as reported)	132,828)	115,065)	125,155)	102,721)	86,346)	91,040)
Less: Noncurrent deferred tax liabilities, net	5,772)	6,031)	7,864)	41)	264)	57)
Total liabilities (adjusted)	127,056)	109,034)	117,291)	102,680)	86,082)	90,983)
Adjustment to Total Oracle Corporation Stockholders’ Equity (deficit)
Total Oracle Corporation stockholders’ equity (deficit) (as reported)	1,073)	(6,220)	5,238)	12,074)	21,785)	45,726)
Less: Net deferred tax assets (liabilities)	6,454)	6,751)	5,772)	3,211)	2,432)	1,434)
Total Oracle Corporation stockholders’ equity (deficit) (adjusted)	(5,381)	(12,971)	(534)	8,863)	19,353)	44,292)
Adjustment to Net Income
Net income (as reported)	8,503)	6,717)	13,746)	10,135)	11,083)	3,825)
Add: Deferred income tax expense (benefit)	(2,167)	(1,146)	(2,425)	(851)	(1,191)	(611)
Net income (adjusted)	6,336)	5,571)	11,321)	9,284)	9,892)	3,214)

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

Oracle Corp., Financial Data: Reported vs. Adjusted

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Oracle Corp., adjusted financial ratios

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Net Profit Margin
Reported net profit margin	17.02%	15.83%	33.96%	25.94%	28.05%	9.60%
Adjusted net profit margin	12.68%	13.13%	27.97%	23.76%	25.04%	8.07%
Total Asset Turnover
Reported total asset turnover	0.37	0.39	0.31	0.34	0.36	0.29
Adjusted total asset turnover	0.41	0.44	0.34	0.35	0.37	0.29
Financial Leverage
Reported financial leverage	125.24	—	25.03	9.56	4.99	3.00
Adjusted financial leverage	—	—	—	12.66	5.48	3.07
Return on Equity (ROE)
Reported ROE	792.45%	—	262.43%	83.94%	50.87%	8.37%
Adjusted ROE	—	—	—	104.75%	51.11%	7.26%
Return on Assets (ROA)
Reported ROA	6.33%	6.15%	10.48%	8.78%	10.20%	2.79%
Adjusted ROA	5.19%	5.77%	9.64%	8.28%	9.33%	2.37%

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Oracle Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Oracle Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Oracle Corp. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Oracle Corp., Financial Ratios: Reported vs. Adjusted

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	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	8,503)	6,717)	13,746)	10,135)	11,083)	3,825)
Revenues	49,954)	42,440)	40,479)	39,068)	39,506)	39,831)
Profitability Ratio
Net profit margin¹	17.02%	15.83%	33.96%	25.94%	28.05%	9.60%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	6,336)	5,571)	11,321)	9,284)	9,892)	3,214)
Revenues	49,954)	42,440)	40,479)	39,068)	39,506)	39,831)
Profitability Ratio
Adjusted net profit margin²	12.68%	13.13%	27.97%	23.76%	25.04%	8.07%

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 8,503 ÷ 49,954 = 17.02%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 6,336 ÷ 49,954 = 12.68%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Oracle Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues	49,954)	42,440)	40,479)	39,068)	39,506)	39,831)
Total assets	134,384)	109,297)	131,107)	115,438)	108,709)	137,264)
Activity Ratio
Total asset turnover¹	0.37	0.39	0.31	0.34	0.36	0.29
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues	49,954)	42,440)	40,479)	39,068)	39,506)	39,831)
Adjusted total assets	122,158)	96,515)	117,471)	112,186)	106,013)	135,773)
Activity Ratio
Adjusted total asset turnover²	0.41	0.44	0.34	0.35	0.37	0.29

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

2023 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 49,954 ÷ 134,384 = 0.37

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 49,954 ÷ 122,158 = 0.41

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Oracle Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	134,384)	109,297)	131,107)	115,438)	108,709)	137,264)
Total Oracle Corporation stockholders’ equity (deficit)	1,073)	(6,220)	5,238)	12,074)	21,785)	45,726)
Solvency Ratio
Financial leverage¹	125.24	—	25.03	9.56	4.99	3.00
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	122,158)	96,515)	117,471)	112,186)	106,013)	135,773)
Adjusted total Oracle Corporation stockholders’ equity (deficit)	(5,381)	(12,971)	(534)	8,863)	19,353)	44,292)
Solvency Ratio
Adjusted financial leverage²	—	—	—	12.66	5.48	3.07

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 134,384 ÷ 1,073 = 125.24

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Oracle Corporation stockholders’ equity (deficit)
= 122,158 ÷ -5,381 = —

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	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	8,503)	6,717)	13,746)	10,135)	11,083)	3,825)
Total Oracle Corporation stockholders’ equity (deficit)	1,073)	(6,220)	5,238)	12,074)	21,785)	45,726)
Profitability Ratio
ROE¹	792.45%	—	262.43%	83.94%	50.87%	8.37%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	6,336)	5,571)	11,321)	9,284)	9,892)	3,214)
Adjusted total Oracle Corporation stockholders’ equity (deficit)	(5,381)	(12,971)	(534)	8,863)	19,353)	44,292)
Profitability Ratio
Adjusted ROE²	—	—	—	104.75%	51.11%	7.26%

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 100 × 8,503 ÷ 1,073 = 792.45%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total Oracle Corporation stockholders’ equity (deficit)
= 100 × 6,336 ÷ -5,381 = —

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	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	8,503)	6,717)	13,746)	10,135)	11,083)	3,825)
Total assets	134,384)	109,297)	131,107)	115,438)	108,709)	137,264)
Profitability Ratio
ROA¹	6.33%	6.15%	10.48%	8.78%	10.20%	2.79%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	6,336)	5,571)	11,321)	9,284)	9,892)	3,214)
Adjusted total assets	122,158)	96,515)	117,471)	112,186)	106,013)	135,773)
Profitability Ratio
Adjusted ROA²	5.19%	5.77%	9.64%	8.28%	9.33%	2.37%

Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 8,503 ÷ 134,384 = 6.33%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 6,336 ÷ 122,158 = 5.19%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Oracle Corp. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Oracle Corp. (NYSE:ORCL)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Oracle Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Oracle Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)