Stock Analysis on Net
Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

Market Value Added (MVA)

Microsoft Excel LibreOffice Calc

MVA

Oracle Corp., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Fair value of borrowings1 89,713  81,013  58,513  61,613  60,413  46,950 
Operating lease liability 2,782  2,098  2,158  1,462  1,541  1,125 
Market value of common equity 217,748  169,146  187,206  175,569  209,937  164,950 
Preferred stock, $0.01 par value; outstanding: none —  —  —  —  —  — 
Noncontrolling interests 714  643  578  498  386  501 
Less: Marketable securities 16,456  5,818  17,313  45,641  44,294  35,973 
Market (fair) value of Oracle 294,501  247,082  231,142  193,501  227,983  177,554 
Less: Invested capital2 81,745  87,978  72,089  72,343  78,705  65,186 
MVA 212,756  159,104  159,053  121,158  149,278  112,367 

Based on: 10-K (filing date: 2021-06-21), 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Oracle Corp.’s market (fair) value less invested capital. Oracle Corp.’s MVA increased from 2019 to 2020 and from 2020 to 2021.

MVA Spread Ratio

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

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 212,756  159,104  159,053  121,158  149,278  112,367 
Invested capital2 81,745  87,978  72,089  72,343  78,705  65,186 
Performance Ratio
MVA spread ratio3 260.27% 180.84% 220.64% 167.48% 189.67% 172.38%
Benchmarks
MVA Spread Ratio, Competitors4
Accenture PLC 550.21% 505.40% 481.52% 496.80% 458.38%
Adobe Inc. 1,082.99% 884.94% 680.30% 847.52% 542.38%
Autodesk Inc. 941.72% 538.60% 712.11% 829.14% 459.75% 263.98%
Automatic Data Processing Inc. 817.87% 531.71% 696.65% 740.57% 591.35% 448.71%
Fidelity National Information Services Inc. 41.03% 56.84% 98.71% 84.96% 59.41%
Fiserv Inc. 69.66% 58.87% 299.38% 277.55% 238.19%
International Business Machines Corp. 39.12% 47.78% 58.57% 83.22% 106.46%
Intuit Inc. 1,175.12% 976.09% 1,553.30% 1,330.67% 1,158.20% 988.58%
Mastercard Inc. 1,680.77% 2,296.30% 1,961.07% 1,816.28% 1,100.32%
Microsoft Corp. 1,580.36% 1,481.78% 1,057.38% 929.06% 579.14% 692.61%
PayPal Holdings Inc. 977.63% 556.21% 514.02% 425.37% 204.40%
salesforce.com inc. 271.24% 228.63% 328.24% 407.99% 269.76% 348.76%
ServiceNow Inc. 2,570.21% 2,187.92% 1,589.74% 1,417.41% 1,067.59%
Visa Inc. 665.77% 695.79% 581.94% 426.48% 323.60%

Based on: 10-K (filing date: 2021-06-21), 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22).

1 MVA. See details »

2 Invested capital. See details »

3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 212,756 ÷ 81,745 = 260.27%

4 Click competitor name to see calculations.

Performance ratio Description The company
MVA spread ratio The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. Oracle Corp.’s MVA spread ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

MVA Margin

Oracle Corp., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 212,756  159,104  159,053  121,158  149,278  112,367 
 
Revenues 40,479  39,068  39,506  39,831  37,728  37,047 
Add: Increase (decrease) in deferred revenues 855  (444) 77  219  644  553 
Adjusted revenues 41,334  38,624  39,583  40,050  38,372  37,600 
Performance Ratio
MVA margin2 514.72% 411.93% 401.82% 302.52% 389.03% 298.85%
Benchmarks
MVA Margin, Competitors3
Accenture PLC 279.96% 233.58% 202.17% 213.12% 181.64%
Adobe Inc. 1,554.19% 1,330.31% 1,114.60% 1,105.25% 703.93%
Autodesk Inc. 1,300.77% 711.47% 1,160.93% 1,207.04% 685.72% 332.89%
Automatic Data Processing Inc. 553.99% 350.03% 466.85% 405.73% 358.91% 304.06%
Fidelity National Information Services Inc. 243.93% 412.48% 262.79% 210.28% 154.14%
Fiserv Inc. 280.56% 355.04% 523.93% 442.97% 379.83%
International Business Machines Corp. 68.01% 81.54% 82.32% 113.30% 142.03%
Intuit Inc. 1,489.94% 1,098.60% 1,034.92% 884.25% 643.71% 558.71%
Mastercard Inc. 2,159.18% 1,992.62% 1,467.79% 1,407.06% 1,039.07%
Microsoft Corp. 1,148.11% 976.86% 711.95% 612.04% 442.48% 356.91%
PayPal Holdings Inc. 1,378.91% 697.17% 591.48% 570.26% 309.16%
salesforce.com inc. 620.84% 558.41% 642.42% 643.77% 473.14% 500.78%
ServiceNow Inc. 2,100.88% 1,606.76% 1,344.55% 1,143.86% 801.72%
Visa Inc. 1,874.98% 1,543.59% 1,343.46% 1,186.67% 1,012.98%

Based on: 10-K (filing date: 2021-06-21), 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22).

1 MVA. See details »

2 2021 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 212,756 ÷ 41,334 = 514.72%

3 Click competitor name to see calculations.

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Oracle Corp.’s MVA margin ratio improved from 2019 to 2020 and from 2020 to 2021.