Return on Assets (ROA)
since 2005
Calculation
Oracle Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| May 31, 2024 | 7.42% | = | 100 | × | 10,467) | ÷ | 140,976) |
| May 31, 2023 | 6.33% | = | 100 | × | 8,503) | ÷ | 134,384) |
| May 31, 2022 | 6.15% | = | 100 | × | 6,717) | ÷ | 109,297) |
| May 31, 2021 | 10.48% | = | 100 | × | 13,746) | ÷ | 131,107) |
| May 31, 2020 | 8.78% | = | 100 | × | 10,135) | ÷ | 115,438) |
| May 31, 2019 | 10.20% | = | 100 | × | 11,083) | ÷ | 108,709) |
| May 31, 2018 | 2.79% | = | 100 | × | 3,825) | ÷ | 137,264) |
| May 31, 2017 | 6.92% | = | 100 | × | 9,335) | ÷ | 134,991) |
| May 31, 2016 | 7.93% | = | 100 | × | 8,901) | ÷ | 112,180) |
| May 31, 2015 | 8.96% | = | 100 | × | 9,938) | ÷ | 110,903) |
| May 31, 2014 | 12.13% | = | 100 | × | 10,955) | ÷ | 90,344) |
| May 31, 2013 | 13.35% | = | 100 | × | 10,925) | ÷ | 81,812) |
| May 31, 2012 | 12.74% | = | 100 | × | 9,981) | ÷ | 78,327) |
| May 31, 2011 | 11.62% | = | 100 | × | 8,547) | ÷ | 73,535) |
| May 31, 2010 | 9.96% | = | 100 | × | 6,135) | ÷ | 61,578) |
| May 31, 2009 | 11.80% | = | 100 | × | 5,593) | ÷ | 47,416) |
| May 31, 2008 | 11.68% | = | 100 | × | 5,521) | ÷ | 47,268) |
| May 31, 2007 | 12.36% | = | 100 | × | 4,274) | ÷ | 34,572) |
| May 31, 2006 | 11.65% | = | 100 | × | 3,381) | ÷ | 29,029) |
| May 31, 2005 | 13.95% | = | 100 | × | 2,886) | ÷ | 20,687) |
Based on: 10-K (reporting date: 2024-05-31), 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), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).
1 US$ in millions
- Net Income Trends
- Net income demonstrated a general upward trend from 2005 to 2014, rising from 2,886 million US dollars in 2005 to a peak of 11,083 million in 2019. Notably, there was a significant dip in 2018, with net income decreasing sharply to 3,825 million from 9,335 million in 2017. After 2019, net income exhibited some volatility, dropping to 6,717 million in 2022 before increasing again to 10,467 million in 2024. Overall, net income growth was strong but subject to notable fluctuations in recent years.
- Total Assets Analysis
- Total assets showed consistent growth over the entire period. Starting at 20,687 million US dollars in 2005, total assets increased nearly sevenfold to 140,976 million by 2024. Despite minor fluctuations, the trend was steadily upward, with particularly notable increases between 2007 and 2011, and again from 2015 onward, indicating ongoing asset accumulation and expansion of the company's scale.
- Return on Assets (ROA) Evaluation
- ROA exhibited a declining trend over the two decades. Initially high at 13.95% in 2005, it showed some volatility but generally trended downward, falling to a low around 2.79% in 2018, coinciding with the dip in net income for the same year. Afterward, ROA partially recovered but remained below earlier levels, standing at 7.42% in 2024. This decline suggests decreasing efficiency in generating profit from the asset base over time.
- Interrelationships and Insights
- The increase in total assets outpaced the growth in net income, leading to a reduction in ROA. This indicates that while the company expanded its asset base significantly, it did not consistently translate into proportional profit increases. The pronounced dip in net income and ROA in 2018 suggests a period of challenge or restructuring. Nonetheless, net income rebounds and asset growth in subsequent years point to recovery efforts. The variability in net income alongside steady asset growth warrants attention to operational efficiency and asset utilization effectiveness going forward.
Comparison to Competitors
Oracle Corp., ROA, long-term trends, comparison to competitors
| Oracle Corp. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| May 31, 2024 | 7.42% | 12.99% | 18.39% | 11.76% | 1.34% | 4.39% | 9.22% | 17.21% | 7.29% | 12.89% | 4.14% | 6.99% | 17.31% | 8.39% |
| May 31, 2023 | 6.33% | 13.41% | 18.23% | 18.36% | -3.65% | 5.55% | 8.58% | 17.56% | 4.64% | 3.03% | 0.21% | 9.96% | 11.90% | -2.72% |
| May 31, 2022 | 6.15% | 14.55% | 17.51% | 16.53% | -6.49% | 1.29% | 7.45% | 19.94% | -10.80% | -2.18% | 1.52% | 2.44% | 10.45% | 0.28% |
| May 31, 2021 | 10.48% | 13.68% | 17.70% | 15.87% | -3.39% | 4.35% | 13.29% | 18.36% | -16.02% | -4.87% | 6.14% | 2.13% | 8.66% | -3.24% |
| May 31, 2020 | 8.78% | 13.78% | 21.66% | 14.95% | -10.09% | 3.58% | 16.70% | 14.70% | -43.35% | -2.95% | 0.23% | 1.36% | 8.27% | -7.05% |
| May 31, 2019 | 10.20% | 16.04% | 14.22% | 29.46% | — | 6.20% | 24.78% | 13.69% | — | -1.24% | 3.61% | 10.41% | 8.31% | -7.58% |
| May 31, 2018 | 2.79% | 16.61% | 13.80% | 14.01% | — | 7.07% | 23.39% | 6.40% | — | -2.54% | 0.61% | -0.69% | 7.04% | -6.49% |
| May 31, 2017 | 6.92% | 15.18% | 11.65% | 8.44% | — | 4.59% | 23.87% | 8.80% | — | -6.30% | 1.02% | -4.39% | 2.53% | -12.89% |
| May 31, 2016 | 7.93% | 19.95% | 9.20% | 9.69% | — | 10.11% | 23.04% | 8.67% | — | -8.18% | -0.37% | -22.22% | 5.09% | -10.62% |
| May 31, 2015 | 8.96% | 16.72% | 5.37% | 10.74% | — | 11.94% | 7.35% | 6.92% | — | -8.40% | -2.46% | -10.98% | 4.48% | -10.51% |
| May 31, 2014 | 12.13% | 16.41% | 2.49% | 4.95% | — | 10.23% | 17.44% | 12.81% | — | -15.32% | -2.54% | -12.59% | 5.43% | -7.93% |
| May 31, 2013 | 13.35% | 19.46% | 2.79% | 6.76% | — | 13.06% | 15.64% | 15.35% | — | -4.99% | -4.89% | -6.31% | 5.68% | -12.43% |
| May 31, 2012 | 12.74% | 15.32% | 8.35% | 19.24% | — | 13.93% | 16.91% | 14.00% | — | 0.18% | -0.28% | -7.81% | 4.40% | — |
| May 31, 2011 | 11.62% | 14.48% | 9.26% | 4.10% | — | 13.62% | 12.41% | 21.30% | — | — | 2.09% | — | 6.57% | — |
| May 31, 2010 | 9.96% | 13.87% | 9.52% | 7.31% | — | 13.07% | 11.04% | 21.79% | — | — | 3.28% | — | 7.21% | — |
| May 31, 2009 | 11.80% | 12.97% | 5.31% | -10.62% | — | 12.31% | 9.26% | 18.71% | — | — | 2.93% | — | 5.71% | — |
| May 31, 2008 | 11.68% | 13.64% | 14.98% | -110.44% | — | 11.26% | 10.22% | 24.29% | — | — | 1.68% | — | 6.93% | — |
| May 31, 2007 | 12.36% | 11.57% | 12.67% | 7.65% | — | 8.65% | 10.35% | 22.26% | — | — | 0.07% | — | 4.99% | — |
| May 31, 2006 | 11.65% | 10.33% | 8.48% | 4.14% | — | 9.19% | 15.05% | 18.10% | — | — | 6.55% | — | 1.15% | — |
| May 31, 2005 | 13.95% | 10.50% | 24.70% | 1.45% | — | 7.50% | 14.05% | 17.30% | — | — | 2.62% | — | -0.72% | — |
Based on: 10-K (reporting date: 2024-05-31), 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), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).
Comparison to Sector (Software & Services)
Oracle Corp., ROA, long-term trends, comparison to sector (software & services)
| Oracle Corp. | Software & Services | |
|---|---|---|
| May 31, 2024 | 7.42% | 12.16% |
| May 31, 2023 | 6.33% | 11.18% |
| May 31, 2022 | 6.15% | 11.39% |
| May 31, 2021 | 10.48% | 12.27% |
| May 31, 2020 | 8.78% | 9.67% |
| May 31, 2019 | 10.20% | 10.83% |
| May 31, 2018 | 2.79% | 6.11% |
| May 31, 2017 | 6.92% | 7.29% |
| May 31, 2016 | 7.93% | 8.86% |
| May 31, 2015 | 8.96% | 8.53% |
| May 31, 2014 | 12.13% | 11.18% |
| May 31, 2013 | 13.35% | 13.46% |
| May 31, 2012 | 12.74% | 13.36% |
| May 31, 2011 | 11.62% | 15.34% |
| May 31, 2010 | 9.96% | 14.69% |
| May 31, 2009 | 11.80% | 13.64% |
| May 31, 2008 | 11.68% | 14.32% |
| May 31, 2007 | 12.36% | 12.84% |
| May 31, 2006 | 11.65% | 12.19% |
| May 31, 2005 | 13.95% | 11.53% |
Based on: 10-K (reporting date: 2024-05-31), 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), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).
Comparison to Industry (Information Technology)
Oracle Corp., ROA, long-term trends, comparison to industry (information technology)
| Oracle Corp. | Information Technology | |
|---|---|---|
| May 31, 2024 | 7.42% | 11.99% |
| May 31, 2023 | 6.33% | 12.51% |
| May 31, 2022 | 6.15% | 14.57% |
| May 31, 2021 | 10.48% | 14.66% |
| May 31, 2020 | 8.78% | 11.45% |
| May 31, 2019 | 10.20% | 11.78% |
| May 31, 2018 | 2.79% | 10.94% |
| May 31, 2017 | 6.92% | 9.05% |
| May 31, 2016 | 7.93% | 9.79% |
| May 31, 2015 | 8.96% | 11.53% |
| May 31, 2014 | 12.13% | 12.37% |
| May 31, 2013 | 13.35% | 13.26% |
| May 31, 2012 | 12.74% | 14.08% |
| May 31, 2011 | 11.62% | 15.11% |
| May 31, 2010 | 9.96% | 14.51% |
| May 31, 2009 | 11.80% | 10.09% |
| May 31, 2008 | 11.68% | 12.00% |
| May 31, 2007 | 12.36% | 12.04% |
| May 31, 2006 | 11.65% | 12.22% |
| May 31, 2005 | 13.95% | 12.76% |
Based on: 10-K (reporting date: 2024-05-31), 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), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).