Oracle Corp. (NYSE:ORCL)

The net operating assets showed a consistent increasing trend over the five-year period. Starting at 43,643 million US dollars in 2021, the value rose to 48,189 million in 2022, followed by a significant increase to 81,850 million in 2023. This upward momentum continued with values of 85,447 million in 2024 and reaching 105,268 million by 2025. The steady growth suggests an expansion in the company's operational asset base over the years.

The aggregate accruals exhibited notable volatility throughout the period. Initially, the accruals were at 2,386 million US dollars in 2021, then almost doubled to 4,546 million in 2022. A sharp spike occurred in 2023, reaching 33,661 million, which represents a substantial and atypical increase. This was followed by a steep decline in 2024 to 3,597 million and a subsequent rise to 19,821 million in 2025. The fluctuations indicate significant variability in accrual adjustments, with 2023 representing an outlier year with unusually high accrual figures.

The accruals ratio mimics the pattern observed in aggregate accruals but expressed as a percentage of net operating assets. It rose from 5.62% in 2021 to 9.9% in 2022, prior to an extreme increase to 51.77% in 2023. This spike indicates an extraordinary proportion of accruals relative to net operating assets during that year. The ratio then dropped sharply to 4.3% in 2024 before climbing again to 20.79% in 2025. These variations suggest periods of substantial adjustments in accrual accounting relative to the asset base, with 2023 being particularly anomalous in terms of accrual magnitude.

There is a clear upward trajectory in net operating assets, indicating steady asset growth. However, the balance-sheet-based accruals and their corresponding ratio show considerable instability, with a pronounced peak in 2023. This abnormal spike may warrant further investigation as it suggests unusual accrual activity during that year, which could impact the quality and interpretability of financial reporting for that period. The subsequent return to lower but still elevated levels in 2025 implies ongoing fluctuations in accruals, potentially reflecting changes in accounting estimates, policies, or operational dynamics affecting earnings quality.