Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Oracle Corp., ROE, long-term trends, calculation

Microsoft Excel

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 financial data reveals a period of steady growth followed by a phase of extreme capital structure volatility and a subsequent trend toward normalization. While net income has maintained a long-term upward trajectory, the return on equity (ROE) has experienced significant distortions driven by a dramatic reduction and eventual recovery of stockholders' equity.

Net Income Performance
Net income demonstrated consistent growth from 2005, rising from 2,886 million USD to a peak of 10,955 million USD in 2014. A sharp, temporary decline occurred in 2018, where income dropped to 3,825 million USD, before recovering strongly. The trend continues upward in the latter years, reaching a peak of 17,087 million USD by May 31, 2026.
Stockholders' Equity Trajectory
Equity grew steadily from 10,837 million USD in 2005 to a peak of 53,860 million USD in 2017. Starting in 2018, a severe downward trend is observed, with equity collapsing to 5,238 million USD by 2021 and entering a deficit of 6,220 million USD in 2022. Following this deficit, a rapid recovery is evident, with equity climbing back to 42,508 million USD by 2026.
Return on Equity (ROE) Analysis
Between 2005 and 2017, ROE remained relatively stable, fluctuating within a range of 17.33% to 26.63%. A period of extreme volatility began in 2019, where ROE spiked from 50.87% to 262.43% in 2021. This surge is a mathematical result of the diminishing equity base relative to net income. The ROE for 2022 is absent, coinciding with the period of negative stockholders' equity. After reaching a peak of 792.45% in 2023, ROE has begun a steady descent, falling to 40.20% by 2026 as the equity base is replenished.

The relationship between the metrics indicates that the extraordinary ROE figures observed between 2019 and 2023 were not driven by operational efficiency alone, but by a significantly leveraged capital structure. The current trend shows a return to a more balanced equity position, which is normalizing the ROE toward historical levels while net income continues to expand.



Comparison to Competitors

Oracle Corp., ROE, long-term trends, comparison to competitors

Microsoft Excel

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)



Comparison to Industry (Information Technology)