Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
Oracle Corp., solvency ratios
Based on: 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), 10-K (filing date: 2015-06-25).
| 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 2018 to 2019 and from 2019 to 2020. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Oracle Corp.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020. |
| 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 2018 to 2019 and from 2019 to 2020. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Oracle Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Oracle Corp.’s debt to assets ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Oracle Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Oracle Corp.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020. |
| 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 2018 to 2019 but then slightly improved from 2019 to 2020. |
| 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 2018 to 2019 but then slightly improved from 2019 to 2020. |
Debt to Equity
Oracle Corp., debt to equity calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable, current | 2,371 | 4,494 | 4,491 | 9,797 | 3,750 | 1,999 | |
| Notes payable and other borrowings, non-current | 69,226 | 51,673 | 56,128 | 48,112 | 40,105 | 39,959 | |
| Total debt | 71,597 | 56,167 | 60,619 | 57,909 | 43,855 | 41,958 | |
| Total Oracle Corporation stockholders’ equity | 12,074 | 21,785 | 45,726 | 53,860 | 47,289 | 48,663 | |
| Solvency Ratio | |||||||
| Debt to equity1 | 5.93 | 2.58 | 1.33 | 1.08 | 0.93 | 0.86 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Adobe Inc. | 0.31 | 0.39 | 0.44 | 0.22 | 0.26 | 0.27 | |
| Alphabet Inc. | 0.07 | 0.02 | 0.02 | 0.03 | 0.03 | — | |
| Autodesk Inc. | — | — | — | 2.03 | 0.92 | 0.34 | |
| 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. | 0.66 | 0.12 | 0.19 | 0.36 | 0.86 | 0.21 | |
| Microsoft Corp. | 0.54 | 0.71 | 0.92 | 1.19 | 0.75 | 0.44 | |
| salesforce.com inc. | 0.08 | 0.20 | 0.18 | 0.27 | 0.26 | 0.34 | |
| ServiceNow Inc. | 0.58 | 0.33 | 0.60 | 2.01 | 1.31 | — | |
| Debt to Equity, Sector | |||||||
| Software & Computer Services | — | 0.43 | 0.46 | 0.52 | 0.43 | — | |
| Debt to Equity, Industry | |||||||
| Technology | — | 0.56 | 0.56 | 0.59 | 0.48 | — | |
Based on: 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), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Debt to equity = Total debt ÷ Total Oracle Corporation stockholders’ equity
= 71,597 ÷ 12,074 = 5.93
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 2018 to 2019 and from 2019 to 2020. |
Debt to Equity (including Operating Lease Liability)
Oracle Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable, current | 2,371 | 4,494 | 4,491 | 9,797 | 3,750 | 1,999 | |
| Notes payable and other borrowings, non-current | 69,226 | 51,673 | 56,128 | 48,112 | 40,105 | 39,959 | |
| Total debt | 71,597 | 56,167 | 60,619 | 57,909 | 43,855 | 41,958 | |
| Current lease liabilities for operating leases | 575 | — | — | — | — | — | |
| Non-current lease liabilities for operating leases | 1,523 | — | — | — | — | — | |
| Total debt (including operating lease liability) | 73,695 | 56,167 | 60,619 | 57,909 | 43,855 | 41,958 | |
| Total Oracle Corporation stockholders’ equity | 12,074 | 21,785 | 45,726 | 53,860 | 47,289 | 48,663 | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 6.10 | 2.58 | 1.33 | 1.08 | 0.93 | 0.86 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Adobe Inc. | 0.35 | 0.39 | 0.44 | 0.22 | 0.26 | 0.27 | |
| Alphabet Inc. | 0.13 | 0.08 | 0.02 | 0.03 | 0.03 | — | |
| Autodesk Inc. | — | — | — | 2.03 | 0.92 | 0.34 | |
| Facebook Inc. | 0.08 | 0.10 | 0.00 | 0.00 | 0.00 | — | |
| International Business Machines Corp. | — | 3.27 | 2.73 | 2.66 | 2.31 | 2.80 | |
| Intuit Inc. | 0.71 | 0.12 | 0.19 | 0.36 | 0.86 | 0.21 | |
| Microsoft Corp. | 0.61 | 0.78 | 1.01 | 1.19 | 0.75 | 0.44 | |
| salesforce.com inc. | 0.17 | 0.20 | 0.18 | 0.27 | 0.26 | 0.34 | |
| ServiceNow Inc. | 0.75 | 0.53 | 0.60 | 2.01 | 1.31 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Computer Services | — | 0.50 | 0.47 | 0.52 | 0.43 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Technology | — | 0.61 | 0.57 | 0.59 | 0.48 | — | |
Based on: 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), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Oracle Corporation stockholders’ equity
= 73,695 ÷ 12,074 = 6.10
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Oracle Corp.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020. |
Debt to Capital
Oracle Corp., debt to capital calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable, current | 2,371 | 4,494 | 4,491 | 9,797 | 3,750 | 1,999 | |
| Notes payable and other borrowings, non-current | 69,226 | 51,673 | 56,128 | 48,112 | 40,105 | 39,959 | |
| Total debt | 71,597 | 56,167 | 60,619 | 57,909 | 43,855 | 41,958 | |
| Total Oracle Corporation stockholders’ equity | 12,074 | 21,785 | 45,726 | 53,860 | 47,289 | 48,663 | |
| Total capital | 83,671 | 77,952 | 106,345 | 111,769 | 91,144 | 90,621 | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.86 | 0.72 | 0.57 | 0.52 | 0.48 | 0.46 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Adobe Inc. | 0.24 | 0.28 | 0.31 | 0.18 | 0.20 | 0.21 | |
| Alphabet Inc. | 0.06 | 0.02 | 0.02 | 0.03 | 0.03 | — | |
| Autodesk Inc. | 1.07 | 1.11 | 1.19 | 0.67 | 0.48 | 0.25 | |
| 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. | 0.40 | 0.10 | 0.16 | 0.26 | 0.46 | 0.18 | |
| Microsoft Corp. | 0.35 | 0.41 | 0.48 | 0.54 | 0.43 | 0.31 | |
| salesforce.com inc. | 0.07 | 0.17 | 0.15 | 0.21 | 0.21 | 0.26 | |
| ServiceNow Inc. | 0.37 | 0.25 | 0.37 | 0.67 | 0.57 | — | |
| Debt to Capital, Sector | |||||||
| Software & Computer Services | — | 0.30 | 0.31 | 0.34 | 0.30 | — | |
| Debt to Capital, Industry | |||||||
| Technology | — | 0.36 | 0.36 | 0.37 | 0.33 | — | |
Based on: 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), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 71,597 ÷ 83,671 = 0.86
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 2018 to 2019 and from 2019 to 2020. |
Debt to Capital (including Operating Lease Liability)
Oracle Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable, current | 2,371 | 4,494 | 4,491 | 9,797 | 3,750 | 1,999 | |
| Notes payable and other borrowings, non-current | 69,226 | 51,673 | 56,128 | 48,112 | 40,105 | 39,959 | |
| Total debt | 71,597 | 56,167 | 60,619 | 57,909 | 43,855 | 41,958 | |
| Current lease liabilities for operating leases | 575 | — | — | — | — | — | |
| Non-current lease liabilities for operating leases | 1,523 | — | — | — | — | — | |
| Total debt (including operating lease liability) | 73,695 | 56,167 | 60,619 | 57,909 | 43,855 | 41,958 | |
| Total Oracle Corporation stockholders’ equity | 12,074 | 21,785 | 45,726 | 53,860 | 47,289 | 48,663 | |
| Total capital (including operating lease liability) | 85,769 | 77,952 | 106,345 | 111,769 | 91,144 | 90,621 | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.86 | 0.72 | 0.57 | 0.52 | 0.48 | 0.46 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Adobe Inc. | 0.26 | 0.28 | 0.31 | 0.18 | 0.20 | 0.21 | |
| Alphabet Inc. | 0.11 | 0.07 | 0.02 | 0.03 | 0.03 | — | |
| Autodesk Inc. | 1.06 | 1.11 | 1.19 | 0.67 | 0.48 | 0.25 | |
| Facebook Inc. | 0.08 | 0.09 | 0.00 | 0.00 | 0.00 | — | |
| International Business Machines Corp. | — | 0.77 | 0.73 | 0.73 | 0.70 | 0.74 | |
| Intuit Inc. | 0.42 | 0.10 | 0.16 | 0.26 | 0.46 | 0.18 | |
| Microsoft Corp. | 0.38 | 0.44 | 0.50 | 0.54 | 0.43 | 0.31 | |
| salesforce.com inc. | 0.15 | 0.17 | 0.15 | 0.21 | 0.21 | 0.26 | |
| ServiceNow Inc. | 0.43 | 0.35 | 0.37 | 0.67 | 0.57 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Computer Services | — | 0.34 | 0.32 | 0.34 | 0.30 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Technology | — | 0.38 | 0.36 | 0.37 | 0.33 | — | |
Based on: 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), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 73,695 ÷ 85,769 = 0.86
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Oracle Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020. |
Debt to Assets
Oracle Corp., debt to assets calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable, current | 2,371 | 4,494 | 4,491 | 9,797 | 3,750 | 1,999 | |
| Notes payable and other borrowings, non-current | 69,226 | 51,673 | 56,128 | 48,112 | 40,105 | 39,959 | |
| Total debt | 71,597 | 56,167 | 60,619 | 57,909 | 43,855 | 41,958 | |
| Total assets | 115,438 | 108,709 | 137,264 | 134,991 | 112,180 | 110,903 | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.62 | 0.52 | 0.44 | 0.43 | 0.39 | 0.38 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Adobe Inc. | 0.17 | 0.20 | 0.22 | 0.13 | 0.15 | 0.16 | |
| Alphabet Inc. | 0.05 | 0.02 | 0.02 | 0.02 | 0.02 | — | |
| Autodesk Inc. | 0.34 | 0.44 | 0.39 | 0.31 | 0.27 | 0.15 | |
| 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. | 0.31 | 0.07 | 0.08 | 0.12 | 0.24 | 0.10 | |
| Microsoft Corp. | 0.21 | 0.25 | 0.29 | 0.36 | 0.28 | 0.20 | |
| salesforce.com inc. | 0.05 | 0.10 | 0.08 | 0.11 | 0.10 | 0.13 | |
| ServiceNow Inc. | 0.19 | 0.12 | 0.17 | 0.35 | 0.25 | — | |
| Debt to Assets, Sector | |||||||
| Software & Computer Services | — | 0.20 | 0.22 | 0.24 | 0.22 | — | |
| Debt to Assets, Industry | |||||||
| Technology | — | 0.24 | 0.25 | 0.27 | 0.24 | — | |
Based on: 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), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 71,597 ÷ 115,438 = 0.62
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 2018 to 2019 and from 2019 to 2020. |
Debt to Assets (including Operating Lease Liability)
Oracle Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable, current | 2,371 | 4,494 | 4,491 | 9,797 | 3,750 | 1,999 | |
| Notes payable and other borrowings, non-current | 69,226 | 51,673 | 56,128 | 48,112 | 40,105 | 39,959 | |
| Total debt | 71,597 | 56,167 | 60,619 | 57,909 | 43,855 | 41,958 | |
| Current lease liabilities for operating leases | 575 | — | — | — | — | — | |
| Non-current lease liabilities for operating leases | 1,523 | — | — | — | — | — | |
| Total debt (including operating lease liability) | 73,695 | 56,167 | 60,619 | 57,909 | 43,855 | 41,958 | |
| Total assets | 115,438 | 108,709 | 137,264 | 134,991 | 112,180 | 110,903 | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.64 | 0.52 | 0.44 | 0.43 | 0.39 | 0.38 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Adobe Inc. | 0.19 | 0.20 | 0.22 | 0.13 | 0.15 | 0.16 | |
| Alphabet Inc. | 0.09 | 0.06 | 0.02 | 0.02 | 0.02 | — | |
| Autodesk Inc. | 0.41 | 0.44 | 0.39 | 0.31 | 0.27 | 0.15 | |
| Facebook Inc. | 0.07 | 0.08 | 0.00 | 0.00 | 0.00 | — | |
| International Business Machines Corp. | — | 0.45 | 0.37 | 0.37 | 0.36 | 0.36 | |
| Intuit Inc. | 0.33 | 0.07 | 0.08 | 0.12 | 0.24 | 0.10 | |
| Microsoft Corp. | 0.24 | 0.28 | 0.32 | 0.36 | 0.28 | 0.20 | |
| salesforce.com inc. | 0.11 | 0.10 | 0.08 | 0.11 | 0.10 | 0.13 | |
| ServiceNow Inc. | 0.24 | 0.19 | 0.17 | 0.35 | 0.25 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Computer Services | — | 0.24 | 0.22 | 0.24 | 0.22 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Technology | — | 0.26 | 0.25 | 0.27 | 0.24 | — | |
Based on: 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), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 73,695 ÷ 115,438 = 0.64
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Oracle Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020. |
Financial Leverage
Oracle Corp., financial leverage calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 115,438 | 108,709 | 137,264 | 134,991 | 112,180 | 110,903 | |
| Total Oracle Corporation stockholders’ equity | 12,074 | 21,785 | 45,726 | 53,860 | 47,289 | 48,663 | |
| Solvency Ratio | |||||||
| Financial leverage1 | 9.56 | 4.99 | 3.00 | 2.51 | 2.37 | 2.28 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Adobe Inc. | 1.83 | 1.97 | 2.00 | 1.72 | 1.71 | 1.67 | |
| Alphabet Inc. | 1.44 | 1.37 | 1.31 | 1.29 | 1.20 | — | |
| Autodesk Inc. | — | — | — | 6.54 | 3.41 | 2.21 | |
| Facebook Inc. | 1.24 | 1.32 | 1.16 | 1.14 | 1.10 | — | |
| International Business Machines Corp. | — | 7.30 | 7.35 | 7.12 | 6.44 | 7.75 | |
| Intuit Inc. | 2.14 | 1.68 | 2.20 | 3.00 | 3.66 | 2.13 | |
| Microsoft Corp. | 2.55 | 2.80 | 3.13 | 3.33 | 2.69 | 2.20 | |
| salesforce.com inc. | 1.63 | 1.97 | 2.24 | 2.34 | 2.55 | 2.69 | |
| ServiceNow Inc. | 3.07 | 2.83 | 3.49 | 5.82 | 5.26 | — | |
| Financial Leverage, Sector | |||||||
| Software & Computer Services | — | 2.14 | 2.10 | 2.13 | 1.97 | — | |
| Financial Leverage, Industry | |||||||
| Technology | — | 2.32 | 2.27 | 2.20 | 2.04 | — | |
Based on: 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), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Financial leverage = Total assets ÷ Total Oracle Corporation stockholders’ equity
= 115,438 ÷ 12,074 = 9.56
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 2018 to 2019 and from 2019 to 2020. |
Interest Coverage
Oracle Corp., interest coverage calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 10,135 | 11,083 | 3,825 | 9,335 | 8,901 | 9,938 | |
| Add: Net income attributable to noncontrolling interest | 164 | 152 | 135 | 118 | 116 | 113 | |
| Add: Income tax expense | 1,928 | 1,185 | 9,066 | 2,182 | 2,541 | 2,896 | |
| Add: Interest expense | 1,995 | 2,082 | 2,025 | 1,798 | 1,467 | 1,143 | |
| Earnings before interest and tax (EBIT) | 14,222 | 14,502 | 15,051 | 13,433 | 13,025 | 14,090 | |
| Solvency Ratio | |||||||
| Interest coverage1 | 7.13 | 6.97 | 7.43 | 7.47 | 8.88 | 12.33 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Adobe Inc. | 37.00 | 21.38 | 32.31 | 29.73 | 21.37 | 14.61 | |
| Alphabet Inc. | 357.16 | 397.25 | 307.25 | 250.48 | 195.76 | — | |
| Autodesk Inc. | 6.46 | 0.18 | -15.15 | -16.64 | 0.40 | 7.29 | |
| Facebook Inc. | — | — | — | — | — | — | |
| International Business Machines Corp. | — | 8.58 | 16.71 | 19.56 | 20.60 | 35.09 | |
| Intuit Inc. | 158.00 | 126.40 | 76.15 | 45.10 | 35.37 | 27.37 | |
| Microsoft Corp. | 21.47 | 17.27 | 14.35 | 11.42 | 16.89 | 24.70 | |
| salesforce.com inc. | 6.39 | 7.38 | 3.32 | 1.29 | 1.89 | -1.91 | |
| ServiceNow Inc. | 5.56 | 3.02 | 0.26 | -1.79 | -12.52 | — | |
| Interest Coverage, Sector | |||||||
| Software & Computer Services | — | 21.66 | 22.27 | 20.29 | 23.26 | — | |
| Interest Coverage, Industry | |||||||
| Technology | — | 19.78 | 21.77 | 20.42 | 22.56 | — | |
Based on: 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), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 14,222 ÷ 1,995 = 7.13
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 2018 to 2019 but then slightly improved from 2019 to 2020. |
Fixed Charge Coverage
Oracle Corp., fixed charge coverage calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 10,135 | 11,083 | 3,825 | 9,335 | 8,901 | 9,938 | |
| Add: Net income attributable to noncontrolling interest | 164 | 152 | 135 | 118 | 116 | 113 | |
| Add: Income tax expense | 1,928 | 1,185 | 9,066 | 2,182 | 2,541 | 2,896 | |
| Add: Interest expense | 1,995 | 2,082 | 2,025 | 1,798 | 1,467 | 1,143 | |
| Earnings before interest and tax (EBIT) | 14,222 | 14,502 | 15,051 | 13,433 | 13,025 | 14,090 | |
| Add: Operating lease expenses | 615 | 681 | 396 | 360 | 328 | 335 | |
| Earnings before fixed charges and tax | 14,837 | 15,183 | 15,447 | 13,793 | 13,353 | 14,425 | |
| Interest expense | 1,995 | 2,082 | 2,025 | 1,798 | 1,467 | 1,143 | |
| Operating lease expenses | 615 | 681 | 396 | 360 | 328 | 335 | |
| Fixed charges | 2,610 | 2,763 | 2,421 | 2,158 | 1,795 | 1,478 | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 5.68 | 5.50 | 6.38 | 6.39 | 7.44 | 9.76 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Adobe Inc. | 18.77 | 10.78 | 13.34 | 12.26 | 9.79 | 6.56 | |
| Alphabet Inc. | 16.92 | 17.10 | 25.69 | 23.49 | 24.65 | — | |
| Autodesk Inc. | 3.09 | 0.62 | -5.16 | -4.51 | 0.78 | 2.22 | |
| Facebook Inc. | 24.85 | 22.78 | 41.32 | 57.73 | 47.54 | — | |
| International Business Machines Corp. | — | 4.41 | 5.26 | 5.69 | 6.77 | 9.21 | |
| Intuit Inc. | 27.48 | 34.00 | 26.91 | 22.03 | 17.94 | 9.28 | |
| Microsoft Corp. | 12.44 | 10.94 | 9.45 | 7.57 | 9.81 | 11.46 | |
| salesforce.com inc. | 1.68 | 2.89 | 1.54 | 1.08 | 1.26 | 0.10 | |
| ServiceNow Inc. | 2.29 | 1.69 | 0.61 | -0.55 | -5.67 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Computer Services | — | 10.21 | 11.17 | 10.27 | 11.18 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Technology | — | 11.69 | 13.29 | 12.39 | 13.11 | — | |
Based on: 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), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 14,837 ÷ 2,610 = 5.68
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 2018 to 2019 but then slightly improved from 2019 to 2020. |