Microsoft Excel LibreOffice Calc

Oracle Corp. (NYSE:ORCL)


Analysis of Solvency Ratios

Beginner level


Solvency Ratios (Summary)

Oracle Corp., solvency ratios

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Debt Ratios
Debt to equity 2.58 1.33 1.08 0.93 0.86 0.52
Debt to capital 0.72 0.57 0.52 0.48 0.46 0.34
Debt to assets 0.52 0.44 0.43 0.39 0.38 0.27
Financial leverage 4.99 3.00 2.51 2.37 2.28 1.93
Coverage Ratios
Interest coverage 6.97 7.43 7.47 8.88 12.33 16.10
Fixed charge coverage 5.50 6.38 6.39 7.44 9.76 12.07

Based on: 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), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Oracle Corp.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Oracle Corp.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Oracle Corp.’s debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Oracle Corp.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Oracle Corp.’s interest coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Oracle Corp.’s fixed charge coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Equity

Oracle Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (US$ in millions)
Notes payable and other borrowings, current 4,494  4,491  9,797  3,750  1,999  1,508 
Notes payable and other borrowings, non-current 51,673  56,128  48,112  40,105  39,959  22,667 
Total debt 56,167  60,619  57,909  43,855  41,958  24,175 
 
Total Oracle Corporation stockholders’ equity 21,785  45,726  53,860  47,289  48,663  46,878 
Solvency Ratio
Debt to equity1 2.58 1.33 1.08 0.93 0.86 0.52
Benchmarks
Debt to Equity, Competitors2
Adobe Inc. 0.39 0.44 0.22 0.26 0.27 0.22
Alphabet Inc. 0.02 0.02 0.03 0.03 0.04
Facebook Inc. 0.00 0.00 0.00 0.00 0.00
International Business Machines Corp. 3.02 2.73 2.66 2.31 2.80
Intuit Inc. 0.12 0.19 0.36 0.86 0.21 0.16
Microsoft Corp. 0.71 0.92 1.19 0.75 0.44 0.25
salesforce.com inc. 0.20 0.18 0.27 0.26 0.34
ServiceNow Inc. 0.33 0.60 2.01 1.31 0.84
Debt to Equity, Sector
Software & Computer Services 0.43 0.45 0.52 0.42 0.39
Debt to Equity, Industry
Technology 0.56 0.56 0.58 0.48 0.43

Based on: 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), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 2019 Calculation
Debt to equity = Total debt ÷ Total Oracle Corporation stockholders’ equity
= 56,167 ÷ 21,785 = 2.58

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Oracle Corp.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Capital

Oracle Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (US$ in millions)
Notes payable and other borrowings, current 4,494  4,491  9,797  3,750  1,999  1,508 
Notes payable and other borrowings, non-current 51,673  56,128  48,112  40,105  39,959  22,667 
Total debt 56,167  60,619  57,909  43,855  41,958  24,175 
Total Oracle Corporation stockholders’ equity 21,785  45,726  53,860  47,289  48,663  46,878 
Total capital 77,952  106,345  111,769  91,144  90,621  71,053 
Solvency Ratio
Debt to capital1 0.72 0.57 0.52 0.48 0.46 0.34
Benchmarks
Debt to Capital, Competitors2
Adobe Inc. 0.28 0.31 0.18 0.20 0.21 0.18
Alphabet Inc. 0.02 0.02 0.03 0.03 0.04
Facebook Inc. 0.00 0.00 0.00 0.00 0.00
International Business Machines Corp. 0.75 0.73 0.73 0.70 0.74
Intuit Inc. 0.10 0.16 0.26 0.46 0.18 0.14
Microsoft Corp. 0.41 0.48 0.54 0.43 0.31 0.20
salesforce.com inc. 0.17 0.15 0.21 0.21 0.26
ServiceNow Inc. 0.25 0.37 0.67 0.57 0.46
Debt to Capital, Sector
Software & Computer Services 0.30 0.31 0.34 0.30 0.28
Debt to Capital, Industry
Technology 0.36 0.36 0.37 0.33 0.30

Based on: 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), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 56,167 ÷ 77,952 = 0.72

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Oracle Corp.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Debt to Assets

Oracle Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (US$ in millions)
Notes payable and other borrowings, current 4,494  4,491  9,797  3,750  1,999  1,508 
Notes payable and other borrowings, non-current 51,673  56,128  48,112  40,105  39,959  22,667 
Total debt 56,167  60,619  57,909  43,855  41,958  24,175 
 
Total assets 108,709  137,264  134,991  112,180  110,903  90,344 
Solvency Ratio
Debt to assets1 0.52 0.44 0.43 0.39 0.38 0.27
Benchmarks
Debt to Assets, Competitors2
Adobe Inc. 0.20 0.22 0.13 0.15 0.16 0.14
Alphabet Inc. 0.02 0.02 0.02 0.02 0.04
Facebook Inc. 0.00 0.00 0.00 0.00 0.00
International Business Machines Corp. 0.41 0.37 0.37 0.36 0.36
Intuit Inc. 0.07 0.08 0.12 0.24 0.10 0.10
Microsoft Corp. 0.25 0.29 0.36 0.28 0.20 0.13
salesforce.com inc. 0.10 0.08 0.11 0.10 0.13
ServiceNow Inc. 0.12 0.17 0.35 0.25 0.26
Debt to Assets, Sector
Software & Computer Services 0.20 0.22 0.24 0.22 0.20
Debt to Assets, Industry
Technology 0.24 0.25 0.27 0.24 0.22

Based on: 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), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 56,167 ÷ 108,709 = 0.52

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Oracle Corp.’s debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Financial Leverage

Oracle Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (US$ in millions)
Total assets 108,709  137,264  134,991  112,180  110,903  90,344 
Total Oracle Corporation stockholders’ equity 21,785  45,726  53,860  47,289  48,663  46,878 
Solvency Ratio
Financial leverage1 4.99 3.00 2.51 2.37 2.28 1.93
Benchmarks
Financial Leverage, Competitors2
Adobe Inc. 1.97 2.00 1.72 1.71 1.67 1.59
Alphabet Inc. 1.37 1.31 1.29 1.20 1.23
Facebook Inc. 1.32 1.16 1.14 1.10 1.12
International Business Machines Corp. 7.30 7.35 7.12 6.44 7.75
Intuit Inc. 1.68 2.20 3.00 3.66 2.13 1.69
Microsoft Corp. 2.80 3.13 3.33 2.69 2.20 1.92
salesforce.com inc. 1.97 2.24 2.34 2.55 2.69
ServiceNow Inc. 2.83 3.49 5.82 5.26 3.19
Financial Leverage, Sector
Software & Computer Services 2.13 2.09 2.12 1.97 1.94
Financial Leverage, Industry
Technology 2.32 2.27 2.20 2.04 1.99

Based on: 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), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 2019 Calculation
Financial leverage = Total assets ÷ Total Oracle Corporation stockholders’ equity
= 108,709 ÷ 21,785 = 4.99

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Oracle Corp.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Interest Coverage

Oracle Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (US$ in millions)
Net income 11,083  3,825  9,335  8,901  9,938  10,955 
Add: Net income attributable to noncontrolling interest 152  135  118  116  113  98 
Add: Income tax expense 1,185  9,066  2,182  2,541  2,896  2,749 
Add: Interest expense 2,082  2,025  1,798  1,467  1,143  914 
Earnings before interest and tax (EBIT) 14,502  15,051  13,433  13,025  14,090  14,716 
Solvency Ratio
Interest coverage1 6.97 7.43 7.47 8.88 12.33 16.10
Benchmarks
Interest Coverage, Competitors2
Adobe Inc. 21.38 32.31 29.73 21.37 14.61 7.05
Alphabet Inc. 397.25 307.25 250.48 195.76 189.95
Facebook Inc. 1,241.60 2,818.89 3,433.33 1,252.80 270.30
International Business Machines Corp. 8.58 16.71 19.56 20.60 35.09
Intuit Inc. 126.40 76.15 45.10 35.37 27.37 43.39
Microsoft Corp. 17.27 14.35 11.42 16.89 24.70 47.60
salesforce.com inc. 7.38 3.32 1.29 1.89 -1.91
ServiceNow Inc. 3.02 0.26 -1.79 -12.52 -5.21
Interest Coverage, Sector
Software & Computer Services 21.76 22.46 20.48 23.41 28.42
Interest Coverage, Industry
Technology 20.00 22.05 20.93 22.97 35.95

Based on: 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), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 14,502 ÷ 2,082 = 6.97

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Oracle Corp.’s interest coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Fixed Charge Coverage

Oracle Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (US$ in millions)
Net income 11,083  3,825  9,335  8,901  9,938  10,955 
Add: Net income attributable to noncontrolling interest 152  135  118  116  113  98 
Add: Income tax expense 1,185  9,066  2,182  2,541  2,896  2,749 
Add: Interest expense 2,082  2,025  1,798  1,467  1,143  914 
Earnings before interest and tax (EBIT) 14,502  15,051  13,433  13,025  14,090  14,716 
Add: Rent expense 681  396  360  328  335  333 
Earnings before fixed charges and tax 15,183  15,447  13,793  13,353  14,425  15,049 
 
Interest expense 2,082  2,025  1,798  1,467  1,143  914 
Rent expense 681  396  360  328  335  333 
Fixed charges 2,763  2,421  2,158  1,795  1,478  1,247 
Solvency Ratio
Fixed charge coverage1 5.50 6.38 6.39 7.44 9.76 12.07
Benchmarks
Fixed Charge Coverage, Competitors2
Adobe Inc. 10.78 13.34 12.26 9.79 6.56 3.11
Alphabet Inc. 17.10 25.69 23.49 24.65 12.49
Facebook Inc. 22.41 40.75 56.81 45.87 31.36
International Business Machines Corp. 4.41 5.26 5.69 6.77 9.21
Intuit Inc. 34.00 26.91 22.03 17.94 9.28 15.93
Microsoft Corp. 10.94 9.45 7.57 9.81 11.46 19.91
salesforce.com inc. 2.89 1.54 1.08 1.26 0.10
ServiceNow Inc. 1.69 0.61 -0.55 -5.67 -2.64
Fixed Charge Coverage, Sector
Software & Computer Services 10.27 11.28 10.40 11.29 10.94
Fixed Charge Coverage, Industry
Technology 11.77 13.40 12.61 13.29 16.70

Based on: 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), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 15,183 ÷ 2,763 = 5.50

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Oracle Corp.’s fixed charge coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.