Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Oracle Corp., adjusted financial ratios

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Activity Ratio
Total Asset Turnover
Reported 0.37 0.39 0.31 0.34 0.36 0.29
Adjusted 0.41 0.43 0.35 0.34 0.36 0.29
Liquidity Ratio
Current Ratio
Reported 0.91 1.62 2.30 3.03 2.49 3.96
Adjusted 1.54 2.90 3.69 5.81 4.67 7.26
Solvency Ratios
Debt to Equity
Reported 84.33 16.08 5.93 2.58 1.33
Adjusted 16.82 8.51 3.95 1.97 1.14
Debt to Capital
Reported 0.99 1.09 0.94 0.86 0.72 0.57
Adjusted 0.94 1.04 0.89 0.80 0.66 0.53
Financial Leverage
Reported 125.24 25.03 9.56 4.99 3.00
Adjusted 21.63 11.52 6.03 3.67 2.53
Profitability Ratios
Net Profit Margin
Reported 17.02% 15.83% 33.96% 25.94% 28.05% 9.60%
Adjusted 14.71% 10.94% 30.86% 22.47% 25.29% 6.66%
Return on Equity (ROE)
Reported 792.45% 262.43% 83.94% 50.87% 8.37%
Adjusted 131.78% 124.66% 46.50% 33.81% 4.90%
Return on Assets (ROA)
Reported 6.33% 6.15% 10.48% 8.78% 10.20% 2.79%
Adjusted 6.09% 4.75% 10.82% 7.71% 9.22% 1.94%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Oracle Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Oracle Corp. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Oracle Corp. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Oracle Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Oracle Corp. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Oracle Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Reported
Selected Financial Data (US$ in millions)
Revenues 49,954 42,440 40,479 39,068 39,506 39,831
Total assets 134,384 109,297 131,107 115,438 108,709 137,264
Activity Ratio
Total asset turnover1 0.37 0.39 0.31 0.34 0.36 0.29
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenues2 50,782 42,096 41,334 38,624 39,583 40,050
Adjusted total assets3 122,586 96,877 117,844 112,595 108,542 137,605
Activity Ratio
Adjusted total asset turnover4 0.41 0.43 0.35 0.34 0.36 0.29

Based on: 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).

1 2023 Calculation
Total asset turnover = Revenues ÷ Total assets
= 49,954 ÷ 134,384 = 0.37

2 Adjusted revenues. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 50,782 ÷ 122,586 = 0.41

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Oracle Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Reported
Selected Financial Data (US$ in millions)
Current assets 21,004 31,633 55,567 52,140 46,386 75,964
Current liabilities 23,090 19,511 24,164 17,200 18,630 19,195
Liquidity Ratio
Current ratio1 0.91 1.62 2.30 3.03 2.49 3.96
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 21,432 31,995 55,940 52,549 46,757 76,334
Adjusted current liabilities3 13,921 11,023 15,164 9,048 10,017 10,509
Liquidity Ratio
Adjusted current ratio4 1.54 2.90 3.69 5.81 4.67 7.26

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 21,004 ÷ 23,090 = 0.91

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 21,432 ÷ 13,921 = 1.54

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Oracle Corp. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 90,481 75,859 84,245 71,597 56,167 60,619
Total Oracle Corporation stockholders’ equity (deficit) 1,073 (6,220) 5,238 12,074 21,785 45,726
Solvency Ratio
Debt to equity1 84.33 16.08 5.93 2.58 1.33
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 95,330 79,517 87,027 73,695 58,325 62,081
Adjusted total stockholders’ equity (deficit)3 5,667 (2,916) 10,232 18,665 29,607 54,496
Solvency Ratio
Adjusted debt to equity4 16.82 8.51 3.95 1.97 1.14

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 90,481 ÷ 1,073 = 84.33

2 Adjusted total debt. See details »

3 Adjusted total stockholders’ equity (deficit). See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total stockholders’ equity (deficit)
= 95,330 ÷ 5,667 = 16.82


Adjusted Debt to Capital

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 90,481 75,859 84,245 71,597 56,167 60,619
Total capital 91,554 69,639 89,483 83,671 77,952 106,345
Solvency Ratio
Debt to capital1 0.99 1.09 0.94 0.86 0.72 0.57
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 95,330 79,517 87,027 73,695 58,325 62,081
Adjusted total capital3 100,997 76,601 97,259 92,360 87,932 116,577
Solvency Ratio
Adjusted debt to capital4 0.94 1.04 0.89 0.80 0.66 0.53

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 90,481 ÷ 91,554 = 0.99

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 95,330 ÷ 100,997 = 0.94

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Oracle Corp. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Financial Leverage

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Reported
Selected Financial Data (US$ in millions)
Total assets 134,384 109,297 131,107 115,438 108,709 137,264
Total Oracle Corporation stockholders’ equity (deficit) 1,073 (6,220) 5,238 12,074 21,785 45,726
Solvency Ratio
Financial leverage1 125.24 25.03 9.56 4.99 3.00
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 122,586 96,877 117,844 112,595 108,542 137,605
Adjusted total stockholders’ equity (deficit)3 5,667 (2,916) 10,232 18,665 29,607 54,496
Solvency Ratio
Adjusted financial leverage4 21.63 11.52 6.03 3.67 2.53

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 134,384 ÷ 1,073 = 125.24

2 Adjusted total assets. See details »

3 Adjusted total stockholders’ equity (deficit). See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total stockholders’ equity (deficit)
= 122,586 ÷ 5,667 = 21.63


Adjusted Net Profit Margin

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 8,503 6,717 13,746 10,135 11,083 3,825
Revenues 49,954 42,440 40,479 39,068 39,506 39,831
Profitability Ratio
Net profit margin1 17.02% 15.83% 33.96% 25.94% 28.05% 9.60%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income before noncontrolling interests in income2 7,468 4,605 12,755 8,679 10,011 2,669
Adjusted revenues3 50,782 42,096 41,334 38,624 39,583 40,050
Profitability Ratio
Adjusted net profit margin4 14.71% 10.94% 30.86% 22.47% 25.29% 6.66%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 8,503 ÷ 49,954 = 17.02%

2 Adjusted net income before noncontrolling interests in income. See details »

3 Adjusted revenues. See details »

4 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income before noncontrolling interests in income ÷ Adjusted revenues
= 100 × 7,468 ÷ 50,782 = 14.71%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Oracle Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 8,503 6,717 13,746 10,135 11,083 3,825
Total Oracle Corporation stockholders’ equity (deficit) 1,073 (6,220) 5,238 12,074 21,785 45,726
Profitability Ratio
ROE1 792.45% 262.43% 83.94% 50.87% 8.37%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income before noncontrolling interests in income2 7,468 4,605 12,755 8,679 10,011 2,669
Adjusted total stockholders’ equity (deficit)3 5,667 (2,916) 10,232 18,665 29,607 54,496
Profitability Ratio
Adjusted ROE4 131.78% 124.66% 46.50% 33.81% 4.90%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net income ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 100 × 8,503 ÷ 1,073 = 792.45%

2 Adjusted net income before noncontrolling interests in income. See details »

3 Adjusted total stockholders’ equity (deficit). See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income before noncontrolling interests in income ÷ Adjusted total stockholders’ equity (deficit)
= 100 × 7,468 ÷ 5,667 = 131.78%


Adjusted Return on Assets (ROA)

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 8,503 6,717 13,746 10,135 11,083 3,825
Total assets 134,384 109,297 131,107 115,438 108,709 137,264
Profitability Ratio
ROA1 6.33% 6.15% 10.48% 8.78% 10.20% 2.79%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income before noncontrolling interests in income2 7,468 4,605 12,755 8,679 10,011 2,669
Adjusted total assets3 122,586 96,877 117,844 112,595 108,542 137,605
Profitability Ratio
Adjusted ROA4 6.09% 4.75% 10.82% 7.71% 9.22% 1.94%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 8,503 ÷ 134,384 = 6.33%

2 Adjusted net income before noncontrolling interests in income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income before noncontrolling interests in income ÷ Adjusted total assets
= 100 × 7,468 ÷ 122,586 = 6.09%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Oracle Corp. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.