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: 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 several important trends over the period analyzed. Net income demonstrates a general upward trajectory with notable fluctuations. From 2005 to 2014, net income steadily increased from 2,886 million US$ to 10,955 million US$, indicating consistent growth. However, a decline is observed between 2014 and 2016, reaching a low of 3,825 million US$ in 2018. Subsequently, net income recovered and rose again, surpassing previous peaks to reach 12,443 million US$ by 2025. This pattern suggests some volatility, yet an overall positive growth trend in profitability.

Stockholders’ equity exhibits more volatility and some periods of decline. The equity value grew substantially from 10,837 million US$ in 2005 to a peak of 53,860 million US$ in 2017. After this peak, a sharp decline occurred, plummeting to a deficit position of -6,220 million US$ in 2022. This negative equity situation persisted with some recovery, ending at 20,451 million US$ by 2025. The movements in equity indicate periods of significant financial restructuring or losses impacting the company’s net worth.

The return on equity (ROE) shows considerable variability. From moderate levels in the range of 18-27% during the early years (2005–2013), ROE began to fluctuate sharply after 2013. A particularly high spike to 50.87% in 2019 was followed by an extraordinary peak of 262.43% in 2021 and subsequent extremely high figures in 2023 (792.45%) and 2024 (120.26%). Despite the missing value in 2022, the ROE figures indicate an intense period of leverage or low equity base amplifying returns, particularly when combined with the equity deficit observed. By 2025, ROE moderated to 60.84%, still reflecting elevated profitability relative to equity.

In summary, the company experienced strong profitability growth over the long term with considerable earnings volatility. Equity levels peaked in 2017 and subsequently declined sharply, including periods of negative equity, signaling potential financial stress or restructuring. This decline in equity significantly influences ROE metrics, which become highly volatile and extremely elevated in recent years due to a diminished equity base. The data suggests a complex financial environment where earnings remain robust but balance sheet stability faces challenges, impacting return ratios and overall financial health indicators.


Comparison to Competitors

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

Microsoft Excel

Based on: 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)