Common-Size Income Statement
Quarterly Data
Oracle Corp., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).
- Revenue Composition Trends
- The proportion of revenues derived from cloud services and license support has exhibited a generally cyclical pattern, with values oscillating mostly between approximately 64% and 79% over the periods observed. Specifically, there is notable fluctuation, with peaks around 76-79% and troughs near 64%. Cloud license and on-premise license percentages have similarly fluctuated, though within a narrower band, largely remaining below 20% and showing some seasonality. Hardware as a percentage of revenues has steadily declined over time, from above 8% in early periods to below 5% in later periods, indicating a diminishing contribution of hardware sales to overall revenue. Services percentages have remained relatively stable, fluctuating mostly in the range of 7% to 11%, with some periods, particularly in mid-2022, showing a spike above 11% that later normalizes.
- Gross Profit and Cost of Revenues
- Gross profit margins, expressed as a percentage of total revenues, show a declining trend over the full range of data. Initially, gross profit fluctuates around the high seventies to low eighties in percentage terms but gradually decreases to approximately 67% by the latest periods. This decline corresponds with a general increase in the cost of revenues as a percentage of revenues, which rises from about 18-21% early on to over 32% in the latest period measured. This inverse relationship suggests rising costs of goods sold relative to revenue, potentially compressing margins.
- Operating Expenses
- Sales and marketing expenses as a percentage of revenues demonstrate a consistent downward trajectory, dropping from close to 22% in earlier periods to under 14% in the most recent periods. Research and development expenses have remained fairly steady, mostly ranging between 15% and 18%, with some variation but no strong directional trend. General and administrative expenses are stable as well, around the 2.5% to 3.5% range without significant long-term variation. Notably, amortization of intangible assets shows a distinct decline, from over 4% in early periods to below 3% by the most recent measurements, reflecting reduced amortization charges relative to revenues over time.
- Profitability
- Operating income as a percentage of revenues exhibits substantial volatility. While it initially ranges between approximately 31% and 41%, there is a sharp negative deviation observed in one period with a drop below zero, before recovering to a mid- to high-20% range thereafter. Income before taxes follows a broadly similar pattern, with a dip into negative territory in the period corresponding with operating income decline. Net income margins fluctuate notably but generally remain positive, exhibiting a strong peak in a few periods where it exceeds 40%, although it tends toward the 15-25% range otherwise. Income tax provisions vary widely, sometimes even showing benefits rather than charges, suggesting fluctuations in tax circumstances or deferred tax adjustments.
- Other Financial Indicators
- Interest expense as a percentage of revenues appears relatively stable around 6%, with minor fluctuations. Non-operating income and expenses are generally minor and fluctuate around zero, indicating that non-core activities have limited impact on overall profitability trends. Acquisition-related charges and restructuring expenses represent small percentages of revenues, occasionally spiking but generally remaining below 2%.
- Summary
- The data highlights a company increasingly oriented toward cloud-related revenues, with hardware's share steadily declining. Operating efficiency appears to have improved modestly through reduced sales and marketing costs, though rising costs of revenue have somewhat compressed gross margins. Profitability shows periods of volatility but remains overall positive, supported by controlled operating expenses. The variability in tax provisions and occasional significant dips in operating income and net income margins suggest episodic events affecting profitability, possibly linked to restructuring or acquisition activities. The long-term patterns indicate strategic shifts in revenue composition and ongoing management of cost structures.