Return on Assets (ROA)
since 2005
Calculation
Oracle Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| May 31, 2026 | 6.53% | = | 100 | × | 17,087) | ÷ | 261,759) |
| May 31, 2025 | 7.39% | = | 100 | × | 12,443) | ÷ | 168,361) |
| 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: 2026-05-31), 10-K (reporting date: 2025-05-31), 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
The Return on Assets (ROA) demonstrates a long-term declining trend from 2005 to 2026, transitioning from a period of high asset efficiency to a lower, more stable plateau. While the organization maintained double-digit returns for the first decade of the analyzed period, a structural shift in the relationship between net income and the asset base is evident in the subsequent years.
- Net Income Trajectory
- Net income shows a general upward progression, growing from 2,886 million USD in 2005 to 17,087 million USD by 2026. This growth was characterized by steady increases until 2014, followed by a period of significant volatility. A notable contraction occurred in 2018, where net income dropped to 3,825 million USD, and another dip was observed in 2022. However, a strong recovery trend is evident in the final years of the period.
- Asset Base Expansion
- Total assets have experienced aggressive expansion, increasing from 20,687 million USD in 2005 to 261,759 million USD in 2026. The growth in assets has consistently outpaced the growth in net income over the long term. This is particularly evident in the final projection for 2026, where assets surged to 261,759 million USD, creating a significantly larger denominator for the ROA calculation.
- Return on Assets (ROA) Performance
- ROA remained relatively robust between 2005 and 2014, peaking at 13.95% in 2005 and generally staying above 10% until 2010. A period of deterioration began in 2015, leading to a critical low of 2.79% in 2018, coinciding with the sharp decline in net income. Although a temporary recovery to 10.48% occurred in 2021, the ratio has since settled into a lower range, fluctuating between 6.15% and 7.42% from 2022 through 2026.
The overall analysis indicates that while absolute profitability has increased, the efficiency of asset utilization has diminished. The transition from an average ROA of approximately 12% in the early period to approximately 6.5% in the final period suggests that the scale of the asset base has grown faster than the company's ability to generate incremental profit from those assets.
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Comparison to Competitors
Oracle Corp., ROA, long-term trends, comparison to competitors
| Oracle Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog 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, 2026 | 6.53% | — | — | — | — | -1.47% | — | — | — | — | — | — | 6.64% | — | — | 3.83% |
| May 31, 2025 | 7.39% | 11.74% | 24.17% | 45.92% | 10.92% | -0.22% | 1.62% | 6.97% | 10.47% | 16.45% | 18.26% | 4.81% | 6.02% | 6.71% | 2.76% | 2.93% |
| May 31, 2024 | 7.42% | 12.99% | 18.39% | 26.92% | 11.76% | 1.34% | 3.18% | 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% | 6.66% | 18.36% | -3.65% | 1.23% | 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% | -3.30% | 16.53% | -6.49% | -1.67% | 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% | 0.58% | 15.87% | -3.39% | -0.87% | 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% | -1.30% | 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% | — | -1.61% | 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: 2026-05-31), 10-K (reporting date: 2025-05-31), 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, 2026 | 6.53% | — |
| May 31, 2025 | 7.39% | 12.06% |
| May 31, 2024 | 7.42% | 12.19% |
| May 31, 2023 | 6.33% | 11.12% |
| May 31, 2022 | 6.15% | 11.25% |
| May 31, 2021 | 10.48% | 12.14% |
| May 31, 2020 | 8.78% | 9.64% |
| May 31, 2019 | 10.20% | 10.81% |
| 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: 2026-05-31), 10-K (reporting date: 2025-05-31), 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, 2026 | 6.53% | — |
| May 31, 2025 | 7.39% | 15.40% |
| May 31, 2024 | 7.42% | 11.91% |
| May 31, 2023 | 6.33% | 12.44% |
| May 31, 2022 | 6.15% | 14.47% |
| May 31, 2021 | 10.48% | 14.59% |
| May 31, 2020 | 8.78% | 11.42% |
| May 31, 2019 | 10.20% | 11.75% |
| May 31, 2018 | 2.79% | 10.94% |
| May 31, 2017 | 6.92% | 9.03% |
| 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% | 15.12% |
| May 31, 2010 | 9.96% | 14.52% |
| May 31, 2009 | 11.80% | 10.09% |
| May 31, 2008 | 11.68% | 12.00% |
| May 31, 2007 | 12.36% | 12.05% |
| May 31, 2006 | 11.65% | 12.22% |
| May 31, 2005 | 13.95% | 12.77% |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).