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
- Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
- Adjusted Current Ratio
- Adjusted Net Profit Margin
- Adjusted Total Asset Turnover
- Adjusted Financial Leverage
- Adjusted Return on Equity (ROE)
- Adjusted Return on Assets (ROA)
Income Tax Expense (Benefit)
Oracle Corp., income tax expense (benefit), continuing operations
US$ in millions
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
Item | Description | The company |
---|---|---|
Current provision | Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. | Oracle Corp.’s current provision decreased from 2018 to 2019 but then slightly increased from 2019 to 2020. |
Deferred provision (benefit) | Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. | Oracle Corp.’s deferred provision (benefit) decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level. |
Provision for income taxes | Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. | Oracle Corp.’s provision for income taxes decreased from 2018 to 2019 but then slightly increased from 2019 to 2020. |
Effective Income Tax Rate (EITR)
Oracle Corp., effective income tax rate (EITR) reconciliation
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
Item | Description | The company |
---|---|---|
Effective income tax 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.’s effective income tax rate, before impact of the Tax Act of 2017 decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level. |
Components of Deferred Tax Assets and Liabilities
Oracle Corp., components of deferred tax assets and liabilities
US$ in millions
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
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.’s deferred tax assets increased from 2018 to 2019 and from 2019 to 2020. |
Deferred tax assets, net | Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. | Oracle Corp.’s deferred tax assets, net increased from 2018 to 2019 and from 2019 to 2020. |
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.’s net deferred tax assets (liabilities) increased from 2018 to 2019 and from 2019 to 2020. |
Deferred Tax Assets and Liabilities, Classification
Oracle Corp., deferred tax assets and liabilities, classification
US$ in millions
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
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.’s non-current deferred tax assets increased from 2018 to 2019 and from 2019 to 2020. |
Non-current deferred tax liabilities (in Other non-current liabilities) | Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. | Oracle Corp.’s non-current deferred tax liabilities (in Other non-current liabilities) increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Adjustments to Financial Statements: Removal of Deferred Taxes
Oracle Corp., adjustments to financial statements
US$ in millions
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
Oracle Corp., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Oracle Corp., adjusted financial ratios
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
Financial ratio | Description | The company |
---|---|---|
Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. | Oracle Corp.’s adjusted current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Adjusted net profit margin | An indicator of profitability, calculated as adjusted net income divided by total revenue. | Oracle Corp.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Oracle Corp.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
Adjusted financial leverage | A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
Oracle Corp.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020. |
Adjusted ROE | A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. | Oracle Corp.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020. |
Adjusted ROA | A profitability ratio calculated as adjusted net income divided by adjusted total assets. | Oracle Corp.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
Oracle Corp., Financial Ratios: Reported vs. Adjusted
Adjusted Current Ratio
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
2020 Calculations
1 Current ratio = Current assets ÷ Current liabilities
= 52,140 ÷ 17,200 = 3.03
2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 52,140 ÷ 17,200 = 3.03
Liquidity ratio | Description | The company |
---|---|---|
Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. | Oracle Corp.’s adjusted current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Adjusted Net Profit Margin
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
2020 Calculations
1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 10,135 ÷ 39,068 = 25.94%
2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 9,284 ÷ 39,068 = 23.76%
Profitability ratio | Description | The company |
---|---|---|
Adjusted net profit margin | An indicator of profitability, calculated as adjusted net income divided by total revenue. | Oracle Corp.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
Adjusted Total Asset Turnover
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
2020 Calculations
1 Total asset turnover = Revenues ÷ Total assets
= 39,068 ÷ 115,438 = 0.34
2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 39,068 ÷ 112,186 = 0.35
Activity ratio | Description | The company |
---|---|---|
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Oracle Corp.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
Adjusted Financial Leverage
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
2020 Calculations
1 Financial leverage = Total assets ÷ Total Oracle Corporation stockholders’ equity
= 115,438 ÷ 12,074 = 9.56
2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Oracle Corporation stockholders’ equity
= 112,186 ÷ 8,863 = 12.66
Solvency ratio | Description | The company |
---|---|---|
Adjusted financial leverage | A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
Oracle Corp.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020. |
Adjusted Return on Equity (ROE)
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
2020 Calculations
1 ROE = 100 × Net income ÷ Total Oracle Corporation stockholders’ equity
= 100 × 10,135 ÷ 12,074 = 83.94%
2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total Oracle Corporation stockholders’ equity
= 100 × 9,284 ÷ 8,863 = 104.75%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROE | A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. | Oracle Corp.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020. |
Adjusted Return on Assets (ROA)
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
2020 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × 10,135 ÷ 115,438 = 8.78%
2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 9,284 ÷ 112,186 = 8.28%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROA | A profitability ratio calculated as adjusted net income divided by adjusted total assets. | Oracle Corp.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |