Stock Analysis on Net
Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

Analysis of Investments

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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Oracle Corp., adjustment to net income

US$ in millions

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12 months ended: May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Net income (as reported) 13,746  10,135  11,083  3,825  9,335  8,901 
Add: Net unrealized gains (losses) on marketable securities (1) 91  332  (609) (9) 72 
Net income (adjusted) 13,745  10,226  11,415  3,216  9,326  8,973 

Based on: 10-K (filing date: 2021-06-21), 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).


Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Oracle Corp., adjusted profitability ratios

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May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Net Profit Margin
Reported net profit margin 33.96% 25.94% 28.05% 9.60% 24.74% 24.03%
Adjusted net profit margin 33.96% 26.17% 28.89% 8.07% 24.72% 24.22%
Return on Equity (ROE)
Reported ROE 262.43% 83.94% 50.87% 8.37% 17.33% 18.82%
Adjusted ROE 262.41% 84.69% 52.40% 7.03% 17.32% 18.97%
Return on Assets (ROA)
Reported ROA 10.48% 8.78% 10.20% 2.79% 6.92% 7.93%
Adjusted ROA 10.48% 8.86% 10.50% 2.34% 6.91% 8.00%

Based on: 10-K (filing date: 2021-06-21), 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).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Oracle Corp.’s adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Oracle Corp.’s adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Oracle Corp.’s adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Oracle Corp., Profitability Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

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May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 13,746  10,135  11,083  3,825  9,335  8,901 
Revenues 40,479  39,068  39,506  39,831  37,728  37,047 
Profitability Ratio
Net profit margin1 33.96% 25.94% 28.05% 9.60% 24.74% 24.03%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 13,745  10,226  11,415  3,216  9,326  8,973 
Revenues 40,479  39,068  39,506  39,831  37,728  37,047 
Profitability Ratio
Adjusted net profit margin2 33.96% 26.17% 28.89% 8.07% 24.72% 24.22%

Based on: 10-K (filing date: 2021-06-21), 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).

2021 Calculations

1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 13,746 ÷ 40,479 = 33.96%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 13,745 ÷ 40,479 = 33.96%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Oracle Corp.’s adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Equity (ROE)

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May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 13,746  10,135  11,083  3,825  9,335  8,901 
Total Oracle Corporation stockholders’ equity 5,238  12,074  21,785  45,726  53,860  47,289 
Profitability Ratio
ROE1 262.43% 83.94% 50.87% 8.37% 17.33% 18.82%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 13,745  10,226  11,415  3,216  9,326  8,973 
Total Oracle Corporation stockholders’ equity 5,238  12,074  21,785  45,726  53,860  47,289 
Profitability Ratio
Adjusted ROE2 262.41% 84.69% 52.40% 7.03% 17.32% 18.97%

Based on: 10-K (filing date: 2021-06-21), 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).

2021 Calculations

1 ROE = 100 × Net income ÷ Total Oracle Corporation stockholders’ equity
= 100 × 13,746 ÷ 5,238 = 262.43%

2 Adjusted ROE = 100 × Adjusted net income ÷ Total Oracle Corporation stockholders’ equity
= 100 × 13,745 ÷ 5,238 = 262.41%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Oracle Corp.’s adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Assets (ROA)

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May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 13,746  10,135  11,083  3,825  9,335  8,901 
Total assets 131,107  115,438  108,709  137,264  134,991  112,180 
Profitability Ratio
ROA1 10.48% 8.78% 10.20% 2.79% 6.92% 7.93%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 13,745  10,226  11,415  3,216  9,326  8,973 
Total assets 131,107  115,438  108,709  137,264  134,991  112,180 
Profitability Ratio
Adjusted ROA2 10.48% 8.86% 10.50% 2.34% 6.91% 8.00%

Based on: 10-K (filing date: 2021-06-21), 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).

2021 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 13,746 ÷ 131,107 = 10.48%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 13,745 ÷ 131,107 = 10.48%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Oracle Corp.’s adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.