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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Oracle Corp., economic profit calculation

US$ in millions

12 months ended:	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Net operating profit after taxes (NOPAT)¹	14,158)	11,940)	10,160)	7,492)	14,348)	10,144)
Cost of capital²	16.64%	16.08%	15.63%	14.30%	14.01%	13.52%
Invested capital³	115,423)	101,930)	98,251)	77,262)	81,745)	87,978)

Economic profit⁴	(5,044)	(4,452)	(5,196)	(3,553)	2,898)	(1,747)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 14,158 – 16.64% × 115,423 = -5,044

The analysis of economic profit reveals a predominantly negative trend over the six-year period, indicating that the entity has generally failed to generate returns exceeding its cost of capital. With the exception of a single positive peak in 2021, the company has experienced consistent value destruction, with economic losses deepening significantly from 2022 through 2025.

Net Operating Profit After Taxes (NOPAT): NOPAT exhibited significant volatility, peaking at 14,348 million in 2021 before dropping sharply to 7,492 million in 2022. A recovery phase followed, with a steady climb to 14,158 million by May 31, 2025. Despite this recovery, the growth in operating profit has not been sufficient to offset the combined impact of increasing capital investment and a rising cost of capital.
Cost of Capital: A consistent upward trajectory is observed in the cost of capital, which rose from 13.52% in 2020 to 16.64% in 2025. This steady increase has raised the financial hurdle required to achieve a positive economic profit, intensifying the pressure on operational returns to justify the capital employed.
Invested Capital and Value Creation: Invested capital decreased initially, reaching a low of 77,262 million in 2022, before entering a period of rapid expansion to 115,423 million by 2025. The synchronization of increasing invested capital and an escalating cost of capital has led to a widening gap between actual returns and required returns. Consequently, the economic profit remained negative for five of the six analyzed years, ending the period with a loss of 5,044 million.

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Oracle Corp., NOPAT calculation

US$ in millions

12 months ended:	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Net income	12,443)	10,467)	8,503)	6,717)	13,746)	10,135)
Deferred income tax expense (benefit)¹	(1,637)	(2,139)	(2,167)	(1,146)	(2,425)	(851)
Increase (decrease) in allowances for credit losses²	72)	57)	66)	(11)	(36)	38)
Increase (decrease) in deferred revenues³	187)	608)	828)	(344)	855)	(444)
Increase (decrease) in restructuring plans accrued⁴	(24)	37)	68)	(94)	74)	(111)
Increase (decrease) in equity equivalents⁵	(1,402)	(1,437)	(1,205)	(1,595)	(1,532)	(1,368)
Interest expense	3,578)	3,514)	3,505)	2,755)	2,496)	1,995)
Interest expense, operating lease liability⁶	713)	385)	194)	106)	78)	67)
Adjusted interest expense	4,291)	3,899)	3,699)	2,861)	2,574)	2,062)
Tax benefit of interest expense⁷	(901)	(819)	(777)	(601)	(541)	(433)
Adjusted interest expense, after taxes⁸	3,390)	3,080)	2,922)	2,260)	2,033)	1,629)
Interest income	(578)	(451)	(285)	(94)	(101)	(527)
Investment income, before taxes	(578)	(451)	(285)	(94)	(101)	(527)
Tax expense (benefit) of investment income⁹	121)	95)	60)	20)	21)	111)
Investment income, after taxes¹⁰	(457)	(356)	(225)	(74)	(80)	(416)
Net income (loss) attributable to noncontrolling interest	184)	186)	165)	184)	180)	164)
Net operating profit after taxes (NOPAT)	14,158)	11,940)	10,160)	7,492)	14,348)	10,144)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowances for credit losses.

³ Addition of increase (decrease) in deferred revenues.

⁴ Addition of increase (decrease) in restructuring plans accrued.

⁵ Addition of increase (decrease) in equity equivalents to net income.

⁶ 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 13,450 × 5.30% = 713

⁷ 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 4,291 × 21.00% = 901

⁸ Addition of after taxes interest expense to net income.

⁹ 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 578 × 21.00% = 121

¹⁰ Elimination of after taxes investment income.

Net Income Trend: The net income showed a rising trend from 2020 to 2021, increasing from 10,135 million USD to 13,746 million USD. However, there was a significant decline in 2022, with net income dropping to 6,717 million USD. Following this decline, the net income gradually increased over the next three years, reaching 8,503 million USD in 2023, 10,467 million USD in 2024, and 12,443 million USD in 2025. Overall, despite the dip in 2022, the net income demonstrates recovery and growth toward the latter years.
Net Operating Profit After Taxes (NOPAT) Trend: NNOPAT also increased from 10,144 million USD in 2020 to a peak of 14,348 million USD in 2021. It similarly experienced a large decrease in 2022 to 7,492 million USD. From 2023 onward, NOPAT consistently rose, reaching 10,160 million USD in 2023, 11,940 million USD in 2024, and culminating at 14,158 million USD in 2025. This suggests a strong rebound in operational profitability and effective tax management.
Comparative Insights: The patterns for both net income and NOPAT are aligned, with a peak in 2021, a notable downturn in 2022, and a steady recovery through the following years. NOPAT values are consistently close to net income values, indicating relatively stable operating efficiency and tax impact. The data imply that the company managed to improve operating results over time despite the intermediate disturbance in 2022.

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Oracle Corp., cash operating taxes calculation

US$ in millions

12 months ended:	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Provision for (benefit from) income taxes	1,717)	1,274)	623)	932)	(747)	1,928)
Less: Deferred income tax expense (benefit)	(1,637)	(2,139)	(2,167)	(1,146)	(2,425)	(851)
Add: Tax savings from interest expense	901)	819)	777)	601)	541)	433)
Less: Tax imposed on investment income	121)	95)	60)	20)	21)	111)
Cash operating taxes	4,134)	4,137)	3,507)	2,659)	2,197)	3,101)

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).

Provision for (benefit from) income taxes: The provision for income taxes displays a fluctuating trend over the periods observed. It started at a positive amount of 1928 million USD in May 31, 2020, then dropped sharply to a negative value of -747 million USD in May 31, 2021, suggesting a tax benefit for that year. This was followed by a return to positive values with 932 million USD in 2022 and steady increases in subsequent years, reaching 1717 million USD in May 31, 2025. The data indicates variability but an overall upward trend after the negative dip.
Cash operating taxes: Cash operating taxes present a generally increasing trajectory from May 31, 2020, through May 31, 2025. Starting at 3101 million USD in 2020, the amount decreased in 2021 to 2197 million USD, but then steadily increased each year thereafter, reaching a peak of 4137 million USD in 2024, with a slight decrease to 4134 million USD in 2025. This suggests progressively higher cash tax outflows during the later years, indicative of either higher taxable income or changes in tax payments.

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Oracle Corp., invested capital calculation (financing approach)

US$ in millions

	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Notes payable and other borrowings, current	7,271)	10,605)	4,061)	3,749)	8,250)	2,371)
Finance lease liabilities, current	257)	—)	—)	—)	—)	—)
Notes payable and other borrowings, non-current	85,297)	76,264)	86,420)	72,110)	75,995)	69,226)
Finance lease liabilities, non-current	2,677)	—)	—)	—)	—)	—)
Operating lease liability¹	13,450)	7,545)	4,849)	3,658)	2,782)	2,098)
Total reported debt & leases	108,952)	94,414)	95,330)	79,517)	87,027)	73,695)
Total Oracle Corporation stockholders’ equity (deficit)	20,451)	8,704)	1,073)	(6,220)	5,238)	12,074)
Net deferred tax (assets) liabilities²	(10,248)	(8,581)	(6,454)	(6,751)	(5,772)	(3,211)
Allowances for credit losses³	557)	485)	428)	362)	373)	409)
Deferred revenues⁴	10,733)	10,546)	9,938)	9,110)	9,454)	8,599)
Restructuring plans accrued⁵	212)	236)	199)	131)	225)	151)
Equity equivalents⁶	1,254)	2,686)	4,111)	2,852)	4,280)	5,948)
Accumulated other comprehensive (income) loss, net of tax⁷	1,175)	1,432)	1,522)	1,692)	1,175)	1,716)
Noncontrolling interests	518)	535)	483)	452)	714)	643)
Adjusted total Oracle Corporation stockholders’ equity (deficit)	23,398)	13,357)	7,189)	(1,224)	11,407)	20,381)
Construction in progress⁸	(16,510)	(5,634)	(3,846)	(512)	(233)	(280)
Marketable securities⁹	(417)	(207)	(422)	(519)	(16,456)	(5,818)
Invested capital	115,423)	101,930)	98,251)	77,262)	81,745)	87,978)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred revenues.

⁵ Addition of restructuring plans accrued.

⁶ Addition of equity equivalents to total Oracle Corporation stockholders’ equity (deficit).

⁷ Removal of accumulated other comprehensive income.

⁸ Subtraction of construction in progress.

⁹ Subtraction of marketable securities.

Total reported debt & leases: The total reported debt and leases exhibited an overall increasing trend from 2020 through 2025. Starting at $73,695 million in 2020, the amount rose to $87,027 million in 2021, followed by a decline to $79,517 million in 2022. Thereafter, a consistent upward movement occurred, reaching $95,330 million in 2023, slightly declining to $94,414 million in 2024, and finally increasing substantially to $108,952 million in 2025. This pattern indicates fluctuating debt exposures with a notable increase in the last reported period.
Total Oracle Corporation stockholders’ equity (deficit): Stockholders’ equity showed significant volatility and a considerable turnaround over the years. Initially, equity stood at $12,074 million in 2020, sharply declining to $5,238 million in 2021 and turning into a deficit of -$6,220 million by 2022. Subsequently, equity recovered to a positive $1,073 million in 2023, then improved substantially to $8,704 million in 2024, and reached $20,451 million in 2025. This indicates a transition from financial distress or negative equity toward a stronger equity position, reflecting improved capital structure and retained earnings or other comprehensive income gains.
Invested capital: Invested capital decreased from $87,978 million in 2020 to $77,262 million in 2022, indicating reductions or restructuring in capital allocation during this period. However, from 2022 onward, invested capital rose markedly to $98,251 million in 2023, continuing to $101,930 million in 2024, and further to $115,423 million in 2025. This evolution suggests renewed investment activities and potentially greater operational scale or asset acquisition in the latter years. The confluence of rising invested capital and improving equity alongside increasing debt points to an expansion phase with leveraged financing.

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Oracle Corp., cost of capital calculations

May 31, 2025

	Capital (fair value)¹	Weights					Cost of capital
Equity²	592,299)	592,299)	÷	692,277)	=	0.86	0.86	×	18.84%	=	16.12%
Borrowings and finance lease liabilities³	86,528)	86,528)	÷	692,277)	=	0.12	0.12	×	4.43% × (1 – 21.00%)	=	0.44%
Operating lease liability⁴	13,450)	13,450)	÷	692,277)	=	0.02	0.02	×	5.30% × (1 – 21.00%)	=	0.08%
Total:	692,277)					1.00					16.64%

Based on: 10-K (reporting date: 2025-05-31).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

May 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	393,840)	393,840)	÷	478,986)	=	0.82	0.82	×	18.84%	=	15.49%
Borrowings and finance lease liabilities³	77,601)	77,601)	÷	478,986)	=	0.16	0.16	×	4.13% × (1 – 21.00%)	=	0.53%
Operating lease liability⁴	7,545)	7,545)	÷	478,986)	=	0.02	0.02	×	5.10% × (1 – 21.00%)	=	0.06%
Total:	478,986)					1.00					16.08%

Based on: 10-K (reporting date: 2024-05-31).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

May 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	331,248)	331,248)	÷	416,560)	=	0.80	0.80	×	18.84%	=	14.98%
Borrowings and finance lease liabilities³	80,463)	80,463)	÷	416,560)	=	0.19	0.19	×	4.01% × (1 – 21.00%)	=	0.61%
Operating lease liability⁴	4,849)	4,849)	÷	416,560)	=	0.01	0.01	×	4.00% × (1 – 21.00%)	=	0.04%
Total:	416,560)					1.00					15.63%

Based on: 10-K (reporting date: 2023-05-31).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

May 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	180,362)	180,362)	÷	251,133)	=	0.72	0.72	×	18.84%	=	13.53%
Borrowings and finance lease liabilities³	67,113)	67,113)	÷	251,133)	=	0.27	0.27	×	3.47% × (1 – 21.00%)	=	0.73%
Operating lease liability⁴	3,658)	3,658)	÷	251,133)	=	0.01	0.01	×	2.90% × (1 – 21.00%)	=	0.03%
Total:	251,133)					1.00					14.30%

Based on: 10-K (reporting date: 2022-05-31).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

May 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	217,748)	217,748)	÷	310,243)	=	0.70	0.70	×	18.84%	=	13.22%
Borrowings and finance lease liabilities³	89,713)	89,713)	÷	310,243)	=	0.29	0.29	×	3.35% × (1 – 21.00%)	=	0.77%
Operating lease liability⁴	2,782)	2,782)	÷	310,243)	=	0.01	0.01	×	2.80% × (1 – 21.00%)	=	0.02%
Total:	310,243)					1.00					14.01%

Based on: 10-K (reporting date: 2021-05-31).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

May 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	169,146)	169,146)	÷	252,257)	=	0.67	0.67	×	18.84%	=	12.63%
Borrowings and finance lease liabilities³	81,013)	81,013)	÷	252,257)	=	0.32	0.32	×	3.40% × (1 – 21.00%)	=	0.86%
Operating lease liability⁴	2,098)	2,098)	÷	252,257)	=	0.01	0.01	×	3.20% × (1 – 21.00%)	=	0.02%
Total:	252,257)					1.00					13.52%

Based on: 10-K (reporting date: 2020-05-31).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Oracle Corp., economic spread ratio calculation, comparison to benchmarks

	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Selected Financial Data (US$ in millions)
Economic profit¹	(5,044)	(4,452)	(5,196)	(3,553)	2,898)	(1,747)
Invested capital²	115,423)	101,930)	98,251)	77,262)	81,745)	87,978)
Performance Ratio
Economic spread ratio³	-4.37%	-4.37%	-5.29%	-4.60%	3.54%	-1.99%
Benchmarks
Economic Spread Ratio, Competitors⁴
Accenture PLC	0.65%	0.29%	1.07%	3.94%	5.76%	6.36%
Adobe Inc.	13.13%	0.84%	1.01%	6.51%	8.89%	1.17%
AppLovin Corp.	28.12%	0.41%	-20.71%	-26.87%	-30.28%	—
Cadence Design Systems Inc.	-1.20%	-2.79%	7.26%	6.67%	6.88%	—
CrowdStrike Holdings Inc.	-13.27%	-8.34%	-4.60%	-7.90%	-10.16%	—
Datadog Inc.	-8.82%	-9.51%	-6.04%	-11.79%	-3.97%	—
International Business Machines Corp.	-0.62%	-7.46%	-3.42%	-11.18%	-6.05%	—
Intuit Inc.	-5.20%	-8.87%	-10.90%	-9.75%	-2.22%	1.23%
Microsoft Corp.	7.74%	9.62%	12.66%	20.63%	29.66%	27.74%
Palantir Technologies Inc.	41.56%	-12.35%	-9.08%	-32.82%	-40.27%	—
Palo Alto Networks Inc.	-3.99%	5.20%	11.33%	3.37%	-5.32%	-6.16%
Salesforce Inc.	-12.47%	-14.28%	-17.72%	-14.60%	-12.45%	—
ServiceNow Inc.	2.76%	6.04%	5.33%	0.82%	2.04%	—
Synopsys Inc.	-12.36%	-8.10%	-7.40%	-0.81%	-6.83%	-6.63%
Workday Inc.	-11.63%	-13.03%	-19.26%	-14.09%	-19.34%	—

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -5,044 ÷ 115,423 = -4.37%

⁴ Click competitor name to see calculations.

The analysis of economic value creation reveals a predominantly negative trajectory over the period ending May 31, 2025. A recurring pattern of economic loss is evident, interrupted only by a single year of positive value creation, occurring alongside a significant expansion of the invested capital base in later years.

Economic Profit Trends: Economic profit remained negative for five of the six observed years. A notable positive peak occurred on May 31, 2021, reaching 2,898 million US$, but this was followed by a sharp reversal to -3,553 million US$ in 2022. The losses deepened to a period low of -5,196 million US$ by May 31, 2023, before fluctuating between -4,452 million US$ and -5,044 million US$ through 2025.
Invested Capital Dynamics: Invested capital experienced a period of contraction between 2020 and 2022, decreasing from 87,978 million US$ to 77,262 million US$. Subsequently, a consistent upward trend was established starting in 2023, with capital growing to 115,423 million US$ by May 31, 2025. This indicates a substantial increase in the total resources deployed by the entity over the final three years of the period.
Economic Spread Ratio Performance: The economic spread ratio mirrors the volatility of economic profit, remaining negative for the majority of the period. Following a positive peak of 3.54% in 2021, the ratio declined to -4.60% in 2022 and reached its lowest point of -5.29% in 2023. For the final two reporting periods ending May 31, 2024, and May 31, 2025, the ratio remained stagnant at -4.37%, indicating a persistent inability to generate returns exceeding the cost of capital.

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Oracle Corp., economic profit margin calculation, comparison to benchmarks

	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Selected Financial Data (US$ in millions)
Economic profit¹	(5,044)	(4,452)	(5,196)	(3,553)	2,898)	(1,747)

Revenues	57,399)	52,961)	49,954)	42,440)	40,479)	39,068)
Add: Increase (decrease) in deferred revenues	187)	608)	828)	(344)	855)	(444)
Adjusted revenues	57,586)	53,569)	50,782)	42,096)	41,334)	38,624)
Performance Ratio
Economic profit margin²	-8.76%	-8.31%	-10.23%	-8.44%	7.01%	-4.52%
Benchmarks
Economic Profit Margin, Competitors³
Accenture PLC	0.42%	0.16%	0.55%	1.90%	2.95%	3.24%
Adobe Inc.	11.88%	0.96%	1.27%	7.58%	11.08%	1.68%
AppLovin Corp.	28.90%	0.39%	-28.35%	-50.32%	-60.62%	—
Cadence Design Systems Inc.	-1.80%	-4.28%	7.23%	6.65%	6.99%	—
CrowdStrike Holdings Inc.	-21.84%	-13.08%	-6.18%	-12.37%	-21.10%	—
Datadog Inc.	-5.24%	-8.64%	-3.78%	-8.16%	-3.15%	—
International Business Machines Corp.	-1.11%	-13.19%	-6.10%	-19.37%	-11.51%	—
Intuit Inc.	-6.71%	-13.62%	-17.86%	-18.77%	-2.82%	1.39%
Microsoft Corp.	11.54%	13.45%	14.42%	19.77%	24.62%	20.59%
Palantir Technologies Inc.	21.53%	-10.72%	-4.87%	-55.05%	-66.34%	—
Palo Alto Networks Inc.	-4.73%	5.52%	11.25%	3.93%	-7.16%	-10.00%
Salesforce Inc.	-26.92%	-33.00%	-44.81%	-40.53%	-28.55%	—
ServiceNow Inc.	3.05%	4.97%	4.29%	0.66%	1.77%	—
Synopsys Inc.	-72.13%	-13.58%	-10.44%	-1.13%	-10.87%	-11.39%
Workday Inc.	-12.36%	-14.51%	-23.62%	-19.09%	-25.23%	—

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).

¹ Economic profit. See details »

² 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenues
= 100 × -5,044 ÷ 57,586 = -8.76%

³ Click competitor name to see calculations.

The financial performance from May 31, 2020, to May 31, 2025, is characterized by a persistent divergence between top-line revenue growth and the creation of economic value. While adjusted revenues have demonstrated a consistent and steady upward trajectory, economic profit has remained predominantly negative, suggesting that the returns generated have frequently failed to exceed the company's cost of capital.

Revenue Trajectory: Adjusted revenues exhibited uninterrupted growth throughout the analyzed period, increasing from 38,624 million USD in 2020 to 57,586 million USD in 2025. This represents a sustained expansion in scale and market reach over the six-year window.
Economic Profit Trends: Economic profit showed significant volatility and a general downward trend following a brief recovery. After starting at -1,747 million USD in 2020, a positive peak of 2,898 million USD was achieved in 2021. However, this was followed by a sharp decline into deeper negative territory, reaching a low of -5,196 million USD in 2023 and concluding the period at -5,044 million USD in 2025.
Economic Profit Margin Analysis: The economic profit margin mirrored the fluctuations in absolute economic profit. The margin shifted from -4.52% in 2020 to a positive 7.01% in 2021, before deteriorating significantly to -10.23% by 2023. Despite the continued growth in adjusted revenues, the margin remained negative through 2024 (-8.31%) and 2025 (-8.76%), indicating that the increase in revenue has not been sufficient to overcome the charges associated with the cost of capital.

In summary, the data indicates that while the organization is successfully growing its revenue base, this growth has not translated into positive economic value added. The persistence of a negative economic profit margin suggests a challenge in optimizing the relationship between operating returns and the capital employed to generate those returns.

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Oracle Corp. (NYSE:ORCL)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin