Oracle Corp. (NYSE:ORCL)

The financial data reveals several notable trends over the reported periods. Total asset turnover ratios, both reported and adjusted, exhibit fluctuations with an initial decline in 2021 followed by a rise peaking around 2022 and 2023. However, there is a slight downward shift in 2024 and 2025 compared to the peak, suggesting a modest reduction in asset efficiency.

Current ratios, indicative of liquidity, demonstrate a consistent downward trajectory. The reported current ratio falls markedly from 3.03 in 2020 to below 1.0 in 2023 and remains low thereafter. The adjusted current ratio, while generally higher than the reported, follows the same declining pattern. This consistent decrease points towards a reduction in short-term liquidity and potentially tighter working capital management or increasing short-term liabilities.

Leverage indicators present considerable volatility. The reported debt to equity ratio experiences a substantial spike in 2023, reaching an unusually high level, before dropping significantly in subsequent years. The adjusted debt to equity ratio follows a similar pattern but with lower extremes. Debt to capital ratios remain relatively high but demonstrate a gradual decrease from 1.09 in 2022 to 0.82 reported and 0.83 adjusted in 2025. Financial leverage mirrors these trends with exceptional peaks in 2023 and a return toward more moderate levels in later years. This volatility indicates periods of increased borrowing or changes in capital structure, followed by deleveraging phases.

Profitability measures expose a degree of variability. The net profit margin shows a decline from 33.96% in 2021 down to approximately 15-17% in mid-period years, then recovers gradually to above 19% by 2025. Adjusted net profit margin tracks a similar pattern but consistently stays below the reported figure. Return on equity displays pronounced fluctuations; notably, the reported ROE spikes dramatically in 2023 to 792.45%, likely influenced by financial leverage or extraordinary items, then declines to more moderate levels by 2025. Adjusted ROE is more stable but still evidences a peak in 2023 followed by a downward trend. Return on assets is more stable overall, with reported and adjusted ROA showing a decline in 2022, recovery thereafter, and relative stability around 7% in the final years. These metrics suggest that while profitability experienced pressures during mid-period years, operational efficiency improvements and capital management enhancements contribute to recovery.

Overall, the data suggests a cycle of operational and financial adjustments. Declining liquidity ratios indicate tighter short-term financial conditions, while variations in leverage ratios point to active debt management with significant borrowing and repayment phases. Profitability was challenged mid-period but rebounded later, supported by improving asset utilization and controlled leverage. Such trends warrant monitoring of liquidity management and leverage to sustain profitability gains in future periods.

Total Asset Turnover

Fluctuated with a dip in 2021, peaking around 2022-2023, and a moderate decline towards 2025.

Current Ratios

Consistently declined, indicating reducing short-term liquidity from comfortable levels above 3.0 to near or below 1.0.

Debt to Equity and Debt to Capital

Highly volatile, with sharp peaks in 2023 followed by significant reductions; overall trend points to active leverage management.

Financial Leverage

Mirrors debt trends with extreme increase in 2023 and normalization thereafter, reflecting changes in capital structure.

Net Profit Margin

Reduced sharply after 2021, then showed gradual improvement, ending below initial peaks but on an upward trajectory.

Return on Equity

Exhibited large spikes concurrent with leverage peaks, especially in 2023, followed by sizeable declines.

Return on Assets

More stable with a decline in 2022 and a modest recovery, indicating steadier asset profitability.

The financial data reveals several key trends relating to revenues, total assets, and asset turnover ratios over the six-year period analyzed.

Revenues

Revenues exhibit consistent growth from 2020 through 2025, rising from $39,068 million in 2020 to $57,399 million in 2025. This represents an increasing trend with a notable acceleration between 2022 and 2023, where revenues jumped from approximately $42,440 million to nearly $49,954 million, followed by continued increases in subsequent years.

Total Assets

Total assets display a more fluctuating pattern. Initial growth is observed from 2020 ($115,438 million) to 2021 ($131,107 million), but this is followed by a decline in 2022 ($109,297 million). Subsequent years, however, show recovery and substantial growth, culminating at $168,361 million in 2025. This suggests some volatility or asset base restructuring particularly around 2022, but a strong expansion thereafter.

Reported Total Asset Turnover

The reported total asset turnover ratio starts at 0.34 in 2020 and declines slightly to 0.31 in 2021. It then rises to a peak of 0.39 in 2022, decreasing again gradually to 0.34 by 2025. This pattern indicates fluctuating efficiency in utilizing assets to generate revenues, with peak efficiency around 2022 but a downtrend in subsequent years.

Adjusted Revenues and Assets

Adjusted revenues closely mirror reported revenues, confirming the trend of steady growth from $38,624 million in 2020 to $57,586 million in 2025. Adjusted total assets, however, show a more pronounced decline in 2022, dropping to $96,877 million from $117,844 million in 2021, followed by a robust increase to $157,041 million by 2025. This highlights a similar pattern of asset base contraction in 2022 with recovery and expansion.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio rises from 0.34 in 2020 to a peak of 0.43 in 2022, remaining relatively stable at around 0.41 during 2023 and 2024, before decreasing to 0.37 in 2025. This trajectory suggests an overall improvement in asset utilization efficiency until 2022, followed by a slight decline but maintaining relatively strong efficiency levels compared to the starting point.

Overall, the data indicates a company experiencing steady revenue growth with fluctuations in its asset base and asset efficiency. The year 2022 appears to represent a turning point characterized by a decline in asset levels coupled with peak asset turnover ratios, potentially reflecting strategic asset optimization. Subsequent years reflect recovery and expansion in asset size with somewhat reduced but still improved asset turnover ratios relative to the initial years, suggesting balanced growth and operational efficiency improvements.

The financial data over the periods from May 31, 2020, through May 31, 2025, reveals notable trends in liquidity measures, both reported and adjusted. There is a clear downward trajectory in reported current assets and liabilities alongside adjusted figures, although the adjusted values suggest a more conservative and possibly refined approach to measuring liquidity.

Current Assets

Current assets exhibit a significant decline from 52,140 million US dollars in 2020 to 21,004 million in 2023, marking a notable contraction of liquidity resources available in the short term. The asset base slightly recovers in subsequent years reaching 24,579 million by 2025, indicating some stabilization or modest growth after the sharp drop.

Current Liabilities

Current liabilities show an increasing trend overall, escalating from 17,200 million in 2020 to 32,643 million in 2025. This increase points to growing short-term obligations, which, when combined with decreasing current assets in earlier years, intensifies liquidity risk.

Reported Current Ratio

The reported current ratio declines steeply from a strong 3.03 in 2020 to below 1.0 starting in 2023 (0.91), and further reduces to 0.72 by 2024. A slight improvement to 0.75 is recorded in 2025, but the ratio remains below the critical threshold of 1, suggesting the company’s current liabilities surpass current assets during these years and indicating potential liquidity strain.

Adjusted Current Assets

Adjusted current assets follow a pattern similar to reported assets but maintain consistently higher amounts, starting at 52,549 million in 2020 and falling to 21,432 million in 2023 before recovering to 25,136 million by 2025. This adjustment may reflect reclassifications or more accurate asset valuation, providing a more optimistic liquidity base than the reported figures.

Adjusted Current Liabilities

Adjusted current liabilities are significantly lower than reported liabilities throughout the periods, rising from 9,048 million in 2020 to 23,044 million in 2025. This reduction compared to reported figures implies adjustment assumptions that mitigate certain liabilities or classify them differently, thereby improving the apparent liquidity position.

Adjusted Current Ratio

The adjusted current ratio declines from a robust 5.81 in 2020 to 1.54 in 2023 and further approaches 1.0 in 2024 (1.05) and 2025 (1.09). Despite this decline, the adjusted ratio remains above 1.0 from 2024 onwards, contrasting with the reported ratio and indicating that when adjusted measures are considered, the company maintains a marginally adequate short-term liquidity buffer.

In summary, while there is a clear deterioration in reported liquidity ratios over the observed periods, the adjusted figures show a less severe decline, indicating a nuanced view of short-term financial health. The worsening reported current ratio suggests increased liquidity risk primarily driven by rising current liabilities and decreasing current assets up to 2023, with only partial recovery thereafter. The adjusted metrics imply that some liabilities or asset classifications might have been re-evaluated, which improves the liquidity outlook and points to potential conservatism or methodological differences in reported versus adjusted figures.

The analysis of the financial data over the six-year period reveals significant fluctuations in both debt levels and equity positions. Total debt has generally increased, starting at 71,597 million US dollars in 2020 and rising to 95,502 million US dollars by 2025, with a notable dip in 2022 followed by substantial increases in subsequent years.

Total stockholders’ equity shows marked volatility, beginning at 12,074 million US dollars in 2020 and experiencing a steep decline to a negative equity value of -6,220 million US dollars in 2022. This indicates a financial strain or losses during that period. However, equity recovers thereafter, turning positive again by 2023 and substantially increasing to 20,451 million US dollars by 2025. This trend suggests successful efforts to improve the company’s net asset position following a challenging intermediate period.

The reported debt to equity ratio echoes these movements, with a steady increase from 5.93 in 2020 to a peak of 84.33 in 2023, reflecting the negative equity and rising debt that year, before falling back to 4.67 in 2025. This ratio highlights the heightened financial risk during 2023, followed by a sharp deleveraging or improvement in the equity base subsequently.

When examining the adjusted measures, which may account for additional liabilities or equity adjustments, the trends are consistent, though exhibiting different magnitudes. Adjusted total debt follows a similar increasing trajectory, rising from 73,695 million US dollars in 2020 to 108,952 million US dollars in 2025. Adjusted stockholders’ equity also mirrors the volatility seen in the reported figures, moving from 18,665 million in 2020 to a negative figure in 2022 (-2,916 million), then improving steadily to 22,223 million by 2025.

The adjusted debt to equity ratio fluctuates correspondingly, climbing from 3.95 in 2020 to 16.82 in 2023 amid the equity downturn, then declining to 4.90 by 2025. These changes underline increased leverage and financial pressure in the mid-period followed by stabilization and strengthening thereafter.

Overall, the company experienced a period of financial stress around 2022 and 2023 marked by elevated debt ratios and negative equity, implying potential operational or market challenges. The recovery in equity and reduction in leverage ratios by 2025 suggests effective financial management or improved earnings contributing to a healthier capital structure over time.

Total Debt Trend

Increased over the period with a dip in 2022, reaching a peak in 2025.

Stockholders’ Equity Trend

Experienced severe decline resulting in negative equity in 2022, followed by recovery and substantial growth by 2025.

Debt to Equity Ratios (Reported and Adjusted)

Substantial increase reaching critical levels in 2023, reflecting elevated financial risk, followed by normalization and improvement through 2025.

Financial Health Implications

Indicators suggest periods of high leverage and risk around 2022-2023 with recovery and stabilization in subsequent years.

The analysis of the financial data reveals several trends related to the company’s debt and capital structure over the six-year period ending in May 2025.

Total Debt

Total debt exhibits fluctuations throughout the period. It increased from US$ 71,597 million in 2020 to a peak of US$ 90,481 million in 2023, then slightly decreased to US$ 86,869 million in 2024 before rising again to US$ 95,502 million in 2025. This indicates an overall increasing trend in total debt with some volatility.

Total Capital

Total capital showed variability as well, starting at US$ 83,671 million in 2020, peaking at US$ 91,554 million in 2023, and then increasing significantly to US$ 115,953 million by 2025. The notable growth in total capital in the last two years suggests a strengthening or expansion of the company's capital base.

Reported Debt to Capital Ratio

The reported debt to capital ratio peaked at 1.09 in 2022, indicating debt exceeded capital at that point. Following 2022, the ratio decreased steadily to 0.82 by 2025. This downward trend after 2022 suggests an improvement in the balance between debt and capital, potentially reflecting debt reduction or capital growth strategies.

Adjusted Total Debt

Adjusted total debt follows a pattern similar to reported total debt, starting at US$ 73,695 million in 2020 and reaching a high of US$ 108,952 million in 2025. The adjusted figures are consistently higher than the reported totals, implying the inclusion of additional debt-like obligations or adjustments not reflected in the reported debt.

Adjusted Total Capital

Adjusted total capital rose from US$ 92,360 million in 2020 to US$ 131,175 million in 2025, representing a considerable increase. The trend aligns with the reported total capital pattern but at higher absolute levels, consistent with adjustments made to total capital in parallel with debt adjustments.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio reached 1.04 in 2022, surpassing unity, then declined to 0.83 by 2025. This mirrors the trend observed in the reported ratio and suggests the company improved its leverage position in recent years, though adjusted figures indicate a slightly stronger leverage position compared to reported figures.

Overall, the company exhibited increased borrowing alongside capital growth over the observed periods. The peak leverage ratios in 2022 indicate the highest relative debt burden, after which a gradual deleveraging effort or capital enhancement appears evident. Adjusted metrics reinforce these observations, providing a more inclusive view of obligations and capital structure, with similar trends but higher absolute values and marginally elevated leverage ratios relative to reported figures.

Total assets

The total assets generally exhibit an increasing trend over the periods analyzed. After a rise from 115,438 million USD in 2020 to 131,107 million USD in 2021, there was a decline to 109,297 million USD in 2022. Subsequently, total assets increased steadily to reach 168,361 million USD by 2025, the highest value in the series.

Total Oracle Corporation stockholders’ equity (deficit)

Stockholders’ equity shows considerable volatility. After a positive value of 12,074 million USD in 2020, it sharply decreased to 5,238 million USD in 2021 and turned negative, reaching -6,220 million USD in 2022. From that low point, equity turned positive again in 2023 and continued to increase to 20,451 million USD in 2025. This pattern indicates periods of financial strain followed by recovery.

Reported financial leverage

Reported financial leverage shows pronounced fluctuations. It rose sharply from 9.56 in 2020 to 25.03 in 2021, then data is missing for 2022. In 2023, leverage spiked dramatically to 125.24, signaling a very high level of debt relative to equity. This was followed by a substantial decrease to 16.2 in 2024 and further to 8.23 in 2025, suggesting a significant deleveraging and restoration of balance sheet stability.

Adjusted total assets

Adjusted total assets track a pattern similar to total assets but with generally lower values. These assets increase from 112,595 million USD in 2020 to a peak of 129,188 million USD in 2024, with a dip observed in 2022 (96,877 million USD). The adjusted assets continue rising to 157,041 million USD in 2025, reflecting improved asset quality or revaluation adjustments over time.

Adjusted total stockholders’ equity (deficit)

The adjusted equity values replicate the volatility seen in the reported equity figures but consistently show higher positive values after 2022. It declines from 18,665 million USD in 2020 to a negative 2,916 million USD in 2022, then recovers to 22,223 million USD in 2025. The recovery here also indicates enhanced retained earnings or more favorable adjustments post-2022.

Adjusted financial leverage

Adjusted leverage follows a similar profile to reported leverage, albeit with generally lower magnitudes. It increased from 6.03 in 2020 to 11.52 in 2021, with missing data for 2022. It then jumps to 21.63 in 2023, declines to 10.83 in 2024, and further decreases to 7.07 in 2025. This suggests a cycle of increased debt exposure followed by strong efforts at deleveraging and improving financial ratios.

The financial data reveals several notable trends over the analyzed periods. Revenues demonstrate a consistent upward trajectory, increasing from approximately 39,068 million US dollars in May 2020 to about 57,399 million US dollars in May 2025. This growth indicates sustained business expansion and improved sales performance.

Net income shows more variability compared to revenues. It peaked at 13,746 million US dollars in May 2021, followed by a significant decline to 6,717 million US dollars in May 2022. A recovery phase is observed thereafter, with net income rising steadily to reach 12,443 million US dollars by May 2025. This pattern suggests periods of fluctuating profitability, potentially influenced by changes in operating conditions or extraordinary items.

Analysis of reported net profit margin indicates a similar fluctuation. The margin increased to a high of 33.96% in May 2021, then sharply decreased to 15.83% in May 2022, and gradually improved in subsequent years, reaching 21.68% by May 2025. This ratio reflects the proportion of revenues converting into net income and implies that profitability efficiency faced challenges around 2022 but improved later.

The adjusted net income before noncontrolling interests mirrors the trend seen in net income, starting at 8,679 million US dollars in May 2020, moving to a peak of 12,755 million in May 2021, dropping significantly to 4,605 million in May 2022, and subsequently increasing to 11,298 million by May 2025. This adjustment provides insight into core profitability excluding certain minority interests and indicates a similar cycle of volatility with eventual recovery.

Adjusted revenues remain closely aligned with reported revenues, showing steady growth from 38,624 million US dollars in May 2020 to 57,586 million US dollars in May 2025. The adjusted net profit margin follows a comparable pattern to the reported net profit margin, starting at 22.47%, dipping markedly to 10.94% in May 2022, and then progressively rising to 19.62% in May 2025.

Overall, the data portrays sustained revenue growth with a temporary weakening of profitability around 2022. The subsequent recovery in both net income and profit margins suggests effective measures may have been implemented to restore profit generation efficiency. The divergence between peak profitability in 2021 and troughs in 2022 highlights the importance of examining specific operational or market factors influencing financial performance during that period.

The financial data reveals notable trends across the observed periods in key metrics including net income, equity, and return on equity (ROE), both reported and adjusted.

Net Income

Net income experienced a significant rise from 10,135 million USD in 2020 to a peak of 13,746 million USD in 2021. This was followed by a sharp decline in 2022 to 6,717 million USD, then a recovery trend emerging in subsequent years reaching 12,443 million USD in 2025.

Total Stockholders’ Equity

The total stockholders’ equity showed pronounced volatility over the periods. It began at 12,074 million USD in 2020, then dramatically fell to a deficit of -6,220 million USD in 2022. After this low point, it rebounded to a positive level of 20,451 million USD by 2025, indicating significant equity recovery.

Reported Return on Equity (ROE)

Reported ROE percentages fluctuated markedly, with an extraordinary peak of 262.43% in 2021 and a missing value in 2022 correlating with the equity deficit. The 2023 figure rose sharply to 792.45%, then decreased steadily to 60.84% in 2025. The extreme volatility reflects instability in the relationship between net income and equity during these years.

Adjusted Net Income Before Noncontrolling Interests

This metric mirrored the trajectory of net income, rising from 8,679 million USD in 2020 to 12,755 million USD in 2021, then dropping to 4,605 million USD in 2022. It showed a consistent recovery trend reaching 11,298 million USD in 2025, slightly lagging behind the net income figures but exhibiting similar directional movement.

Adjusted Total Stockholders’ Equity (Deficit)

Adjusted equity followed a pattern comparable to the reported total equity, starting at 18,665 million USD in 2020, dipping into deficit (-2,916 million USD) in 2022, then improving to 22,223 million USD by 2025. This adjusted measure suggests corrections that moderate but do not eliminate the equity fluctuation observed.

Adjusted ROE

Adjusted ROE also demonstrated significant volatility, with high values of 124.66% in 2021 and 131.78% in 2023. The 2022 data is missing, likely due to negative adjusted equity. Following the peak in 2023, adjusted ROE decreased to 50.84% in 2025, indicating normalization of profitability relative to equity.

In summary, the data illustrates a period of financial instability marked by a substantial equity deficit and volatility in profitability ratios around 2022, followed by a marked recovery in subsequent years. The considerable fluctuations in ROE measures underscore challenges in equity valuation and earnings consistency during the middle of the period, with trends towards stabilization and improvement evident by 2025.

Net Income

The net income shows fluctuations over the observed periods. It increased significantly from 10,135 million in 2020 to a peak of 13,746 million in 2021, followed by a sharp decline to 6,717 million in 2022. After this drop, there is a recovery trend with net income rising to 8,503 million in 2023 and continuing to increase steadily to reach 12,443 million by 2025.

Total Assets

Total assets display a generally upward trend despite some volatility. After growing from 115,438 million in 2020 to 131,107 million in 2021, assets decreased to 109,297 million in 2022. From 2022 onward, there is sustained growth, culminating at 168,361 million in 2025, indicating asset base expansion over the long term.

Reported Return on Assets (ROA)

Reported ROA follows a similar pattern to net income, with a peak of 10.48% in 2021 before dropping to 6.15% in 2022. It shows moderate improvement in the subsequent years, reaching 7.39% by 2025. This suggests that the company’s ability to generate profit from its assets weakened significantly in 2022 but improved gradually afterwards.

Adjusted Net Income Before Noncontrolling Interests

The adjusted net income shows an even more pronounced decline in 2022, falling from 12,755 million in 2021 to 4,605 million. Post-2022, there is a consistent upward trajectory, with adjusted net income reaching 11,298 million by 2025, reflecting recovery and growth after a period of underperformance.

Adjusted Total Assets

Adjusted total assets decreased from 117,844 million in 2021 to 96,877 million in 2022 but then steadily increased each year, peaking at 157,041 million in 2025. This trend aligns with the reported total assets, indicating improved asset base after a downturn period.

Adjusted Return on Assets (ROA)

Adjusted ROA declined significantly from 10.82% in 2021 to 4.75% in 2022, highlighting diminished profitability relative to assets. Subsequently, the ratio improved progressively, reaching 7.19% in 2025. Although the recovery is evident, the adjusted ROA remains below the 2021 peak, indicating partial recovery of asset profitability.

Overall Analysis

The financial data reveals a strong performance peak in 2021, followed by a notable downturn in 2022 characterized by reduced income, asset base contraction, and lower profitability ratios. From 2023 onward, key metrics demonstrate a recovery phase with increases in income, asset growth, and improving returns on assets. Despite the recovery, some indicators by 2025 do not fully return to the levels observed in 2021, suggesting ongoing challenges or a transitional period in financial performance.