Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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Solvency Ratios (Summary)
Oracle Corp., solvency ratios
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
- Debt to Equity
- The debt to equity ratio shows significant volatility over the analyzed period. It increased from 5.93 in 2020 to a peak of 84.33 in 2023, indicating a substantial rise in debt relative to equity during that year. However, this ratio sharply declined thereafter, reaching 4.67 by 2025. Including operating lease liabilities presented a similar trend, with slightly higher values but a comparable pattern of increase followed by a substantial decrease.
- Debt to Capital
- The debt to capital ratio remained relatively stable with minor fluctuations. From 0.86 in 2020, it slightly increased to a peak of 1.09 in 2022 before gradually declining to 0.82 in 2025. The inclusion of operating lease liabilities did not significantly alter the trend, maintaining consistent values just marginally higher across the periods.
- Debt to Assets
- This ratio exhibited moderate changes, increasing from 0.62 in 2020 to a maximum of 0.69 in 2022, then trending downward to 0.57 in 2025. When operating lease liabilities are included, the ratio follows the same pattern but with a consistently higher level, peaking at 0.73 and ending at 0.65 in 2025. This suggests a modest shift in the asset structure relative to debt over time.
- Financial Leverage
- Financial leverage mirrored the variability observed in the debt to equity ratio, rising sharply from 9.56 in 2020 to an extreme 125.24 in 2023, followed by a significant reduction to 8.23 in 2025. This indicates a period of increased financial risk, which was mitigated in the later years.
- Interest Coverage
- Interest coverage ratios displayed a declining trend from 7.13 in 2020 to a low of 3.65 in 2023, reflecting reduced ability to cover interest expenses with operating earnings. However, there was a gradual recovery post-2023, with the ratio improving to 5.01 by 2025, indicating improved earnings relative to interest obligations.
- Fixed Charge Coverage
- Fixed charge coverage also experienced a decline from 5.68 in 2020 to 3.12 in 2023, suggesting a decreasing ability to cover fixed financial charges. Following this, a slight improvement occurred, rising to 3.71 in 2025, which signals a moderately better coverage position but still below earlier levels.
Debt Ratios
Coverage Ratios
Debt to Equity
Oracle Corp., debt to equity calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable and other borrowings, current | |||||||
| Finance lease liabilities, current | |||||||
| Notes payable and other borrowings, non-current | |||||||
| Finance lease liabilities, non-current | |||||||
| Total debt | |||||||
| Total Oracle Corporation stockholders’ equity (deficit) | |||||||
| Solvency Ratio | |||||||
| Debt to equity1 | |||||||
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Debt to Equity, Sector | |||||||
| Software & Services | |||||||
| Debt to Equity, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
1 2025 Calculation
Debt to equity = Total debt ÷ Total Oracle Corporation stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibits a fluctuating trend over the periods analyzed. Starting at $71,597 million in 2020, it increased to $84,245 million in 2021, then declined to $75,859 million in 2022. Subsequently, it rose again to $90,481 million in 2023, decreased slightly to $86,869 million in 2024, and increased further to $95,502 million in 2025. Overall, there is an upward trajectory with some volatility.
- Total Stockholders’ Equity
- Stockholders’ equity shows considerable variability with periods of deficit and recovery. It began at $12,074 million in 2020, declined sharply to $5,238 million in 2021, and shifted into a deficit of $6,220 million in 2022. A recovery followed, with equity rising to $1,073 million in 2023, increasing significantly to $8,704 million in 2024, and continuing upward to reach $20,451 million in 2025. This reveals a turnaround from negative values back to solid equity positions.
- Debt to Equity Ratio
- The debt to equity ratio indicates heightened leverage and risk during the period. It increased drastically from 5.93 in 2020 to 16.08 in 2021. Data is missing for 2022, but the ratio peaked dramatically to 84.33 in 2023, reflecting the equity deficit at that time. Following this, the ratio decreased to 9.98 in 2024 and further down to 4.67 in 2025, suggesting a reduction in financial leverage and improved equity base towards the end of the period.
Debt to Equity (including Operating Lease Liability)
Oracle Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable and other borrowings, current | |||||||
| Finance lease liabilities, current | |||||||
| Notes payable and other borrowings, non-current | |||||||
| Finance lease liabilities, non-current | |||||||
| Total debt | |||||||
| Operating lease liabilities, current | |||||||
| Operating lease liabilities, non-current | |||||||
| Total debt (including operating lease liability) | |||||||
| Total Oracle Corporation stockholders’ equity (deficit) | |||||||
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | |||||||
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | |||||||
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Oracle Corporation stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt has exhibited fluctuations over the observed periods. Starting at $73,695 million in 2020, it increased to $87,027 million in 2021, then decreased to $79,517 million in 2022. Subsequently, it rose sharply to $95,330 million in 2023, slightly declined to $94,414 million in 2024, and reached a new high of $108,952 million in 2025. Overall, there is a notable upward trend in debt levels, especially apparent in the last two years.
- Total Stockholders’ Equity (deficit)
- The stockholders' equity displayed considerable volatility. It started at $12,074 million in 2020 but dropped significantly to $5,238 million in 2021. In 2022, the equity position turned negative, reaching -$6,220 million. However, from 2023 onwards, equity improved substantially: rising to $1,073 million in 2023, then $8,704 million in 2024, and further increasing to $20,451 million in 2025. This pattern indicates a recovery from a deficit position to a strong positive equity stance over the latter years.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio has shown extreme variability, corresponding to changes in equity values. The ratio was 6.1 in 2020, surged dramatically to 16.61 in 2021, and was not reported for 2022, likely due to the negative equity figure which makes the ratio undefined or not meaningful. The ratio peaked at an exceptionally high 88.84 in 2023, reflecting very low equity relative to debt. In 2024, the ratio sharply declined to 10.85, and further decreased to 5.33 in 2025. This decreasing trend in the ratio from 2023 to 2025 aligns with the restoration of positive equity and suggests an improvement in the company’s capital structure leverage.
Debt to Capital
Oracle Corp., debt to capital calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable and other borrowings, current | |||||||
| Finance lease liabilities, current | |||||||
| Notes payable and other borrowings, non-current | |||||||
| Finance lease liabilities, non-current | |||||||
| Total debt | |||||||
| Total Oracle Corporation stockholders’ equity (deficit) | |||||||
| Total capital | |||||||
| Solvency Ratio | |||||||
| Debt to capital1 | |||||||
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Debt to Capital, Sector | |||||||
| Software & Services | |||||||
| Debt to Capital, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited fluctuating trends across the observed periods. Initially, there was a rise from US$71,597 million in 2020 to US$84,245 million in 2021. This was followed by a decline to US$75,859 million in 2022. Afterward, total debt increased again to reach US$90,481 million in 2023, before slightly decreasing to US$86,869 million in 2024. The most recent figure in 2025 shows an upward movement, reaching the highest value of US$95,502 million during the period.
- Total Capital
- Total capital demonstrated variability with an overall upward trend towards the later years. The capital started at US$83,671 million in 2020, increased to US$89,483 million in 2021, then decreased sharply to US$69,639 million in 2022. Subsequently, total capital rose significantly, reaching US$91,554 million in 2023 and further increasing to US$95,573 million in 2024. The latest figure in 2025 shows a pronounced increase to US$115,953 million, marking the highest capital level over the examined timeframe.
- Debt to Capital Ratio
- The debt to capital ratio initially rose from 0.86 in 2020 to 0.94 in 2021, indicating an increase in leverage relative to capital. This ratio surpassed the value of 1.0 in 2022, reaching 1.09, which suggests that debt exceeded total capital that year. Following this peak, the ratio declined to 0.99 in 2023 and continued to decrease to 0.91 in 2024 and 0.82 in 2025. This decreasing trend in the debt to capital ratio in the latter years reflects a relative improvement in the company’s capitalization structure, with debt constituting a smaller proportion of total capital.
Debt to Capital (including Operating Lease Liability)
Oracle Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable and other borrowings, current | |||||||
| Finance lease liabilities, current | |||||||
| Notes payable and other borrowings, non-current | |||||||
| Finance lease liabilities, non-current | |||||||
| Total debt | |||||||
| Operating lease liabilities, current | |||||||
| Operating lease liabilities, non-current | |||||||
| Total debt (including operating lease liability) | |||||||
| Total Oracle Corporation stockholders’ equity (deficit) | |||||||
| Total capital (including operating lease liability) | |||||||
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | |||||||
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | |||||||
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
-
The total debt exhibited fluctuations over the observed periods. Initially, from May 31, 2020, to May 31, 2021, there was a significant increase from $73,695 million to $87,027 million. This was followed by a decline in the subsequent year, dropping to $79,517 million as of May 31, 2022. However, total debt rose again to $95,330 million by May 31, 2023 and remained relatively stable in the following year at $94,414 million. The most recent data point shows an increase to $108,952 million as of May 31, 2025, marking the highest level within the timeframe analyzed.
- Total capital (including operating lease liability)
-
Total capital experienced notable variability throughout the period. Starting at $85,769 million on May 31, 2020, it increased modestly to $92,265 million in 2021, but then sharply decreased to $73,297 million by May 31, 2022. From that point onward, total capital rose steadily, reaching $96,403 million in 2023, $103,118 million in 2024, and further increasing significantly to $129,403 million by May 31, 2025. This upward trajectory in the later years suggests a strengthening capital base.
- Debt to capital ratio (including operating lease liability)
-
The debt to capital ratio reflected a pattern of initial increase followed by a decline over the observed period. Beginning at 0.86 in 2020, the ratio increased to a peak of 1.08 in 2022, indicating that debt surpassed total capital at that point. Subsequently, the ratio decreased consistently to 0.99 in 2023, 0.92 in 2024, and further down to 0.84 in 2025. The declining ratio in recent years suggests an improving capital structure, with debt becoming a smaller proportion of the total capital base despite the absolute rise in debt levels.
Debt to Assets
Oracle Corp., debt to assets calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable and other borrowings, current | |||||||
| Finance lease liabilities, current | |||||||
| Notes payable and other borrowings, non-current | |||||||
| Finance lease liabilities, non-current | |||||||
| Total debt | |||||||
| Total assets | |||||||
| Solvency Ratio | |||||||
| Debt to assets1 | |||||||
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Debt to Assets, Sector | |||||||
| Software & Services | |||||||
| Debt to Assets, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibits fluctuations over the observed years. It increased from 71,597 million USD in 2020 to a peak of 90,481 million USD in 2023. After a slight decline in 2024 to 86,869 million USD, it rose again in 2025 reaching 95,502 million USD. Overall, there is a general upward trend with some variability across the periods.
- Total Assets
- Total assets show significant growth over the period. Starting at 115,438 million USD in 2020, the value increased to 131,107 million USD in 2021, followed by a drop to 109,297 million USD in 2022. Subsequently, total assets rose consistently, reaching 168,361 million USD in 2025. This indicates an overall expansion in asset base despite a dip in 2022.
- Debt to Assets Ratio
- The debt to assets ratio peaked at 0.69 in 2022, indicating that debt represented a higher proportion of assets at that time. Prior to this, the ratio was lower, at 0.62 in 2020 and 0.64 in 2021. After the peak, the ratio declined steadily to 0.57 in 2025. This suggests an improvement in the company's leverage position relative to its asset base, with debt comprising a smaller portion of assets in recent years.
- General Observations
- The total assets and total debt increased over the period, but assets grew at a relatively higher pace especially after 2022. Despite fluctuations in total debt, the declining debt to assets ratio from 2022 onwards indicates strengthening financial stability and reduced reliance on debt financing relative to the asset base. The dip in total assets in 2022 contrasts with the overall upward trend, warranting further investigation into that period's specific circumstances or transactions.
Debt to Assets (including Operating Lease Liability)
Oracle Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Notes payable and other borrowings, current | |||||||
| Finance lease liabilities, current | |||||||
| Notes payable and other borrowings, non-current | |||||||
| Finance lease liabilities, non-current | |||||||
| Total debt | |||||||
| Operating lease liabilities, current | |||||||
| Operating lease liabilities, non-current | |||||||
| Total debt (including operating lease liability) | |||||||
| Total assets | |||||||
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | |||||||
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | |||||||
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt shows a fluctuating but generally increasing trend over the observed periods. Starting at 73,695 million USD in 2020, it rises to 87,027 million USD in 2021, then declines slightly in 2022 to 79,517 million USD. Subsequently, it increases again, reaching 95,330 million USD in 2023, with a marginal decrease to 94,414 million USD in 2024, before a notable rise to 108,952 million USD in 2025. This pattern indicates an overall growing leverage position with some year-to-year variation.
- Total Assets
- Total assets demonstrate a general upward trajectory over the time frame. From 115,438 million USD in 2020, assets increase steadily to 131,107 million USD in 2021, then experience a dip to 109,297 million USD in 2022. The asset base expands again to 134,384 million USD in 2023 and continues growing to 140,976 million USD in 2024, culminating at 168,361 million USD in 2025. Despite the temporary decline in 2022, the overall trend signals asset growth, suggesting continued investment or capitalization over the years.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio exhibits volatility but a modest decline towards the end of the timeline. Beginning at 0.64 in 2020, it increases to 0.66 in 2021 and peaks at 0.73 in 2022. Subsequently, it decreases to 0.71 in 2023, then declines further to 0.67 in 2024, and finally to 0.65 in 2025. This trend implies that while the company experienced periods of higher leverage relative to its asset base, its leverage ratio has been moderating recently, which may reflect improved balance sheet management or asset growth outpacing debt increases.
Financial Leverage
Oracle Corp., financial leverage calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | |||||||
| Total Oracle Corporation stockholders’ equity (deficit) | |||||||
| Solvency Ratio | |||||||
| Financial leverage1 | |||||||
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Financial Leverage, Sector | |||||||
| Software & Services | |||||||
| Financial Leverage, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
1 2025 Calculation
Financial leverage = Total assets ÷ Total Oracle Corporation stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
- The total assets exhibited a generally increasing trend over the years under review. Starting from US$115.4 billion in 2020, assets rose notably to US$131.1 billion in 2021. There was a decline to US$109.3 billion in 2022, followed by a strong recovery to US$134.4 billion in 2023 and continued growth through 2024 and 2025, reaching US$168.4 billion. This pattern suggests overall expansion in the company's asset base despite a temporary setback in 2022.
- Total Stockholders’ Equity
- Stockholders’ equity experienced significant fluctuations across the periods. It started at US$12.1 billion in 2020 and decreased sharply to US$5.2 billion in 2021. The equity turned negative in 2022, at -US$6.2 billion, indicating a deficit situation that year. The equity position improved in the subsequent years, returning to a positive US$1.1 billion in 2023, US$8.7 billion in 2024, and rising further to US$20.5 billion in 2025. The recovery from a deficit to substantial positive equity highlights a strong restitution in the company's net worth.
- Financial Leverage
- The financial leverage ratio showed extreme volatility, with values indicating significant changes in capital structure or equity base. It climbed from 9.56 in 2020 to a very high 25.03 in 2021, followed by an absence of data in 2022. In 2023, the ratio spiked dramatically to 125.24, reflecting an extraordinary leverage level, likely due to the negative equity recorded that year. Afterwards, financial leverage normalized considerably to 16.2 in 2024 and further decreased to 8.23 in 2025. These fluctuations imply periods of increased financial risk and subsequent deleveraging efforts.
Interest Coverage
Oracle Corp., interest coverage calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | |||||||
| Add: Net income attributable to noncontrolling interest | |||||||
| Add: Income tax expense | |||||||
| Add: Interest expense | |||||||
| Earnings before interest and tax (EBIT) | |||||||
| Solvency Ratio | |||||||
| Interest coverage1 | |||||||
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Interest Coverage, Sector | |||||||
| Software & Services | |||||||
| Interest Coverage, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT demonstrated a fluctuating trend over the period from May 31, 2020, to May 31, 2025. It initially increased from 14,222 million US dollars in 2020 to 15,675 million in 2021, followed by a significant decrease to 10,588 million in 2022. From 2022 onwards, EBIT showed a consistent recovery and growth, reaching 17,922 million in 2025, surpassing the initial values from 2020 and 2021. This reflects a period of volatility followed by a strong upward momentum in earnings before interest and tax.
- Interest expense
- The interest expense exhibited a steady increase over the entire period. Starting at 1,995 million US dollars in 2020, it rose consistently each year to reach 3,578 million in 2025. This represents an increasing financial cost that potentially impacts net profitability and necessitates consideration in financial management policies.
- Interest coverage ratio
- The interest coverage ratio, which measures the company's ability to cover its interest expense with EBIT, shows a declining trend from 7.13 in 2020 to a low of 3.65 in 2023. This decline reflects a worsening ability to service interest payments relative to earnings during these years. However, from 2023 onward, there is an improvement, with the ratio increasing to 5.01 by 2025, indicating enhanced earnings relative to interest obligations. Despite this improvement, the ratio in 2025 remains below the levels seen at the start of the period.
Fixed Charge Coverage
Oracle Corp., fixed charge coverage calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | |||||||
| Add: Net income attributable to noncontrolling interest | |||||||
| Add: Income tax expense | |||||||
| Add: Interest expense | |||||||
| Earnings before interest and tax (EBIT) | |||||||
| Add: Operating lease cost | |||||||
| Earnings before fixed charges and tax | |||||||
| Interest expense | |||||||
| Operating lease cost | |||||||
| Fixed charges | |||||||
| Solvency Ratio | |||||||
| Fixed charge coverage1 | |||||||
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | |||||||
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- There is a fluctuating trend in earnings before fixed charges and tax over the observed periods. The amount increased from 14,837 million in 2020 to a peak of 16,342 million in 2021, followed by a sharp decline to 11,366 million in 2022. After this dip, earnings rose again steadily to 19,638 million by 2025, indicating a recovery and growth phase in the later years.
- Fixed charges
- Fixed charges have shown a consistent upward trend throughout the periods analyzed. They increased steadily from 2,610 million in 2020 to 5,294 million in 2025. This doubling of fixed charges over the period suggests rising financial obligations or interest expenses.
- Fixed charge coverage ratio
- The fixed charge coverage ratio exhibits a notable decline from 5.68 in 2020 to a low of 3.12 in 2023, implying reduced earnings relative to fixed charges and potentially increased financial risk during this interval. However, after 2023, the ratio shows improvement, rising to 3.71 by 2025. This improvement indicates enhanced capacity to cover fixed charges with earnings, although the ratio remains below initial levels, reflecting a more leveraged position compared to the start of the period.