Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Oracle Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
The solvency profile exhibits a consistent and significant improvement across all measured metrics from August 2021 through August 2026. There is a pronounced trend of deleveraging, characterized by a reduction in the reliance on debt relative to equity, assets, and total capital, paired with an enhanced capacity to service interest obligations.
- Debt-to-Equity and Financial Leverage
- A sharp contraction is observed in both debt-to-equity and financial leverage ratios starting in May 2023. The debt-to-equity ratio declined precipitously from 84.33 in May 2023 to 1.88 by August 2026. This trajectory is mirrored by the financial leverage ratio, which dropped from 125.24 to 4.54 over the same period. These figures indicate a fundamental shift in the capital structure toward a much higher proportion of equity financing.
- Debt-to-Capital and Debt-to-Assets
- A steady downward trend is evident in the debt-to-capital and debt-to-assets ratios. Debt to capital decreased from a peak of 1.15 in November 2021 to 0.65 by August 2026. Similarly, the debt-to-assets ratio, which peaked at 0.73 in November 2021, ended at 0.41 in August 2026. The inclusion of operating lease liabilities results in slightly higher ratios but does not alter the overall downward trend, suggesting that the reduction in total debt is the primary driver of improved solvency.
- Interest Coverage
- The interest coverage ratio experienced initial volatility, declining from 6.06 in August 2021 to a low of 3.33 in August 2022. However, from May 2023 onward, a consistent recovery is observed, with the ratio rising from 3.60 to 5.26 by August 2026. This increase indicates a strengthening of the margin of safety for interest payments, reflecting improved operating performance relative to interest expenses.
Overall, the data indicates a strategic shift toward a lower-risk financial position. The simultaneous decline in leverage ratios and the improvement in interest coverage suggest a substantial reduction in financial risk and an increased long-term solvency posture.
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Debt to Equity
Oracle Corp., debt to equity calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Notes payable and other borrowings, current | 7,625) | 7,199) | 9,887) | 8,091) | 9,079) | 7,271) | 8,167) | 8,162) | 9,201) | 10,605) | 5,510) | 6,321) | 4,499) | 4,061) | 5,415) | 9,746) | 16,097) | 3,749) | 6,248) | 4,998) | 6,748) | |||||||
| Notes payable and other borrowings, non-current | 117,712) | 122,342) | 124,718) | 99,984) | 82,236) | 85,297) | 88,109) | 80,462) | 75,314) | 76,264) | 82,470) | 82,468) | 84,442) | 86,420) | 86,396) | 81,173) | 75,480) | 72,110) | 72,165) | 73,433) | 75,970) | |||||||
| Total debt | 125,337) | 129,541) | 134,605) | 108,075) | 91,315) | 92,568) | 96,276) | 88,624) | 84,515) | 86,869) | 87,980) | 88,789) | 88,941) | 90,481) | 91,811) | 90,919) | 91,577) | 75,859) | 78,413) | 78,431) | 82,718) | |||||||
| Total Oracle Corporation stockholders’ equity (deficit) | 66,772) | 42,508) | 38,495) | 29,951) | 24,154) | 20,451) | 16,730) | 13,746) | 10,816) | 8,704) | 5,623) | 3,866) | 2,370) | 1,073) | (2,421) | (4,246) | (5,875) | (6,220) | (8,696) | (10,101) | (1,541) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | 1.88 | 3.05 | 3.50 | 3.61 | 3.78 | 4.53 | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 0.16 | 0.16 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.04 | 0.06 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Adobe Inc. | — | — | 0.54 | 0.58 | 0.54 | 0.53 | 0.53 | 0.54 | 0.47 | 0.40 | 0.39 | 0.38 | 0.24 | 0.22 | 0.23 | 0.24 | 0.26 | 0.29 | 0.29 | 0.30 | 0.30 | |||||||
| AppLovin Corp. | — | — | — | 1.11 | 1.49 | 1.65 | 2.38 | 3.01 | 6.45 | 3.22 | 3.74 | 4.32 | 4.64 | 2.48 | 2.85 | 2.11 | 1.69 | 1.69 | 1.71 | 1.69 | 1.60 | |||||||
| Cadence Design Systems Inc. | — | — | — | 0.36 | 0.44 | 0.45 | 0.48 | 0.49 | 0.52 | 0.53 | 0.62 | 0.32 | 0.18 | 0.19 | 0.21 | 0.22 | 0.23 | 0.27 | 0.29 | 0.13 | 0.13 | |||||||
| Datadog Inc. | — | — | — | 0.23 | 0.25 | 0.26 | 0.29 | 0.31 | 0.55 | 0.59 | 0.28 | 0.31 | 0.34 | 0.37 | 0.41 | 0.45 | 0.49 | 0.52 | 0.57 | 0.61 | 0.66 | |||||||
| International Business Machines Corp. | — | — | — | 1.80 | 2.01 | 1.88 | 2.26 | 2.33 | 2.35 | 2.01 | 2.31 | 2.35 | 2.56 | 2.51 | 2.39 | 2.59 | 2.72 | 2.32 | 2.53 | 2.59 | 2.85 | |||||||
| Intuit Inc. | — | 0.40 | 0.30 | 0.32 | 0.32 | 0.30 | 0.32 | 0.35 | 0.34 | 0.33 | 0.32 | 0.35 | 0.35 | 0.35 | 0.38 | 0.45 | 0.43 | 0.42 | 0.40 | 0.43 | 0.21 | |||||||
| Microsoft Corp. | — | 0.09 | 0.10 | 0.10 | 0.12 | 0.13 | 0.13 | 0.15 | 0.16 | 0.19 | 0.26 | 0.31 | 0.32 | 0.23 | 0.25 | 0.26 | 0.28 | 0.30 | 0.31 | 0.33 | 0.35 | |||||||
| Palantir Technologies Inc. | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Palo Alto Networks Inc. | — | 0.06 | 0.05 | 0.00 | 0.00 | 0.00 | 0.05 | 0.08 | 0.11 | 0.19 | 0.26 | 0.42 | 0.90 | 1.14 | 2.99 | 5.05 | 7.24 | 17.51 | 10.89 | 31.19 | 7.08 | |||||||
| Salesforce Inc. | 1.15 | 0.24 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.24 | 0.06 | |||||||
| ServiceNow Inc. | — | — | — | 0.60 | 0.13 | 0.12 | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.17 | 0.18 | 0.20 | 0.21 | 0.21 | 0.27 | 0.30 | 0.33 | 0.35 | 0.39 | |||||||
| Synopsys Inc. | — | — | 0.32 | 0.33 | 0.33 | 0.48 | 0.52 | 1.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Workday Inc. | 0.45 | 0.38 | 0.34 | 0.33 | 0.33 | 0.33 | 0.35 | 0.36 | 0.37 | 0.37 | 0.45 | 0.47 | 0.50 | 0.53 | 0.55 | 0.80 | 0.86 | 0.41 | 0.44 | 0.48 | 0.55 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Debt to equity = Total debt ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 125,337 ÷ 66,772 = 1.88
2 Click competitor name to see calculations.
The financial trajectory from August 2021 through August 2026 is characterized by a fundamental shift in the solvency structure, moving from a state of negative shareholders' equity to a robust positive equity position. This transition has resulted in a dramatic improvement in the debt-to-equity ratio, despite a significant increase in total debt during the latter portion of the period.
- Total Debt Trends
- Total debt remained relatively stable between August 2021 and November 2024, fluctuating primarily between 75 billion and 92 billion US dollars. However, a sharp upward trend began in November 2024, with debt increasing to 108.1 billion US dollars, peaking at 134.6 billion US dollars in February 2026, before moderating slightly to 125.3 billion US dollars by August 2026.
- Stockholders' Equity Evolution
- A significant recovery in stockholders' equity is observed. For the first seven quarters of the analyzed period, the company operated with a deficit, reaching a low of -10.1 billion US dollars in November 2021. Equity turned positive in May 2023 at 1.1 billion US dollars and exhibited consistent, accelerated growth thereafter, culminating in a balance of 66.8 billion US dollars by August 2026.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio was not applicable during the deficit period but became a measurable metric in May 2023. Starting at a high of 84.33, the ratio experienced a continuous and steep decline. This downward trend persisted even as total debt increased in 2025 and 2026, because the growth in stockholders' equity significantly outpaced the growth in debt. By August 2026, the ratio reached a low of 1.88, indicating a substantial strengthening of the solvency position and a reduced reliance on debt relative to equity.
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Debt to Equity (including Operating Lease Liability)
Oracle Corp., debt to equity (including operating lease liability) calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Notes payable and other borrowings, current | 7,625) | 7,199) | 9,887) | 8,091) | 9,079) | 7,271) | 8,167) | 8,162) | 9,201) | 10,605) | 5,510) | 6,321) | 4,499) | 4,061) | 5,415) | 9,746) | 16,097) | 3,749) | 6,248) | 4,998) | 6,748) | |||||||
| Notes payable and other borrowings, non-current | 117,712) | 122,342) | 124,718) | 99,984) | 82,236) | 85,297) | 88,109) | 80,462) | 75,314) | 76,264) | 82,470) | 82,468) | 84,442) | 86,420) | 86,396) | 81,173) | 75,480) | 72,110) | 72,165) | 73,433) | 75,970) | |||||||
| Total debt | 125,337) | 129,541) | 134,605) | 108,075) | 91,315) | 92,568) | 96,276) | 88,624) | 84,515) | 86,869) | 87,980) | 88,789) | 88,941) | 90,481) | 91,811) | 90,919) | 91,577) | 75,859) | 78,413) | 78,431) | 82,718) | |||||||
| Operating lease liabilities, non-current | 30,594) | 26,648) | 18,512) | 16,311) | 14,094) | 11,536) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt (including operating lease liability) | 155,931) | 156,189) | 153,117) | 124,386) | 105,409) | 104,104) | 96,276) | 88,624) | 84,515) | 86,869) | 87,980) | 88,789) | 88,941) | 90,481) | 91,811) | 90,919) | 91,577) | 75,859) | 78,413) | 78,431) | 82,718) | |||||||
| Total Oracle Corporation stockholders’ equity (deficit) | 66,772) | 42,508) | 38,495) | 29,951) | 24,154) | 20,451) | 16,730) | 13,746) | 10,816) | 8,704) | 5,623) | 3,866) | 2,370) | 1,073) | (2,421) | (4,246) | (5,875) | (6,220) | (8,696) | (10,101) | (1,541) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 2.34 | 3.67 | 3.98 | 4.15 | 4.36 | 5.09 | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 0.26 | 0.27 | 0.27 | 0.26 | 0.27 | 0.28 | 0.28 | 0.15 | 0.17 | 0.12 | 0.12 | 0.12 | 0.12 | 0.14 | 0.14 | 0.15 | 0.16 | 0.17 | 0.17 | |||||||
| Adobe Inc. | — | — | 0.57 | 0.61 | 0.58 | 0.57 | 0.56 | 0.57 | 0.50 | 0.43 | 0.42 | 0.41 | 0.26 | 0.25 | 0.26 | 0.28 | 0.29 | 0.33 | 0.32 | 0.33 | 0.34 | |||||||
| Datadog Inc. | — | — | — | 0.29 | 0.32 | 0.34 | 0.37 | 0.40 | 0.64 | 0.68 | 0.37 | 0.40 | 0.43 | 0.45 | 0.49 | 0.54 | 0.56 | 0.59 | 0.65 | 0.67 | 0.72 | |||||||
| International Business Machines Corp. | — | — | — | 1.89 | 2.12 | 1.98 | 2.39 | 2.46 | 2.49 | 2.14 | 2.46 | 2.49 | 2.70 | 2.66 | 2.54 | 2.72 | 2.85 | 2.46 | 2.68 | 2.75 | 3.02 | |||||||
| Intuit Inc. | — | 0.44 | 0.33 | 0.36 | 0.35 | 0.33 | 0.35 | 0.38 | 0.37 | 0.35 | 0.34 | 0.38 | 0.37 | 0.38 | 0.40 | 0.48 | 0.47 | 0.45 | 0.43 | 0.46 | 0.25 | |||||||
| Microsoft Corp. | — | 0.13 | 0.14 | 0.15 | 0.17 | 0.18 | 0.19 | 0.21 | 0.21 | 0.25 | 0.32 | 0.37 | 0.39 | 0.29 | 0.31 | 0.33 | 0.35 | 0.37 | 0.38 | 0.40 | 0.42 | |||||||
| Palantir Technologies Inc. | — | — | — | 0.02 | 0.03 | 0.02 | 0.03 | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 | 0.04 | 0.05 | 0.06 | 0.07 | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | |||||||
| Palo Alto Networks Inc. | — | 0.09 | 0.07 | 0.04 | 0.04 | 0.04 | 0.10 | 0.14 | 0.17 | 0.26 | 0.34 | 0.50 | 1.02 | 1.30 | 3.20 | 5.42 | 7.80 | 18.82 | 11.70 | 33.58 | 7.65 | |||||||
| Salesforce Inc. | 1.22 | 0.29 | 0.19 | 0.18 | 0.19 | 0.19 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.25 | 0.30 | 0.14 | |||||||
| ServiceNow Inc. | — | — | — | 0.68 | 0.21 | 0.19 | 0.21 | 0.22 | 0.24 | 0.24 | 0.24 | 0.26 | 0.28 | 0.30 | 0.31 | 0.32 | 0.40 | 0.44 | 0.47 | 0.51 | 0.55 | |||||||
| Synopsys Inc. | — | — | 0.35 | 0.36 | 0.36 | 0.50 | 0.55 | 1.08 | 0.07 | 0.08 | 0.09 | 0.09 | 0.10 | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.11 | |||||||
| Workday Inc. | 0.57 | 0.49 | 0.43 | 0.41 | 0.38 | 0.37 | 0.39 | 0.40 | 0.41 | 0.41 | 0.49 | 0.52 | 0.55 | 0.58 | 0.60 | 0.86 | 0.92 | 0.46 | 0.51 | 0.56 | 0.63 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 155,931 ÷ 66,772 = 2.34
2 Click competitor name to see calculations.
The financial trajectory indicates a significant restructuring of the balance sheet, characterized by a transition from a stockholders' equity deficit to a robust positive equity position over the analyzed period.
- Equity Position and Capital Recovery
- A period of negative stockholders' equity was observed from August 2021 through February 2023, with the deficit peaking at 10.1 billion USD in November 2021. A pivotal reversal occurred in May 2023, when equity turned positive at 1.07 billion USD. Following this inflection point, equity experienced consistent and accelerated growth, expanding to 66.77 billion USD by August 2026.
- Debt Load Evolution
- Total debt, including operating lease liabilities, remained relatively stable between 75 billion USD and 92 billion USD from August 2021 through August 2023. A substantial increase in leverage was noted starting in February 2025, with total debt climbing to a peak of 156.19 billion USD in May 2026 before stabilizing at 155.93 billion USD by August 2026. Despite this increase in absolute debt, the simultaneous and more rapid growth in equity mitigated the impact on the solvency ratio.
- Debt-to-Equity Ratio Trajectory
- The debt-to-equity ratio became calculable in May 2023 at a high of 84.33. From this point, a sharp and continuous downward trend is observed. The ratio declined rapidly to 9.98 by February 2024 and continued to compress throughout the subsequent periods, reaching 2.34 by August 2026. This trajectory reflects a substantial improvement in the solvency profile and a shift toward a more balanced capital structure.
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Debt to Capital
Oracle Corp., debt to capital calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Notes payable and other borrowings, current | 7,625) | 7,199) | 9,887) | 8,091) | 9,079) | 7,271) | 8,167) | 8,162) | 9,201) | 10,605) | 5,510) | 6,321) | 4,499) | 4,061) | 5,415) | 9,746) | 16,097) | 3,749) | 6,248) | 4,998) | 6,748) | |||||||
| Notes payable and other borrowings, non-current | 117,712) | 122,342) | 124,718) | 99,984) | 82,236) | 85,297) | 88,109) | 80,462) | 75,314) | 76,264) | 82,470) | 82,468) | 84,442) | 86,420) | 86,396) | 81,173) | 75,480) | 72,110) | 72,165) | 73,433) | 75,970) | |||||||
| Total debt | 125,337) | 129,541) | 134,605) | 108,075) | 91,315) | 92,568) | 96,276) | 88,624) | 84,515) | 86,869) | 87,980) | 88,789) | 88,941) | 90,481) | 91,811) | 90,919) | 91,577) | 75,859) | 78,413) | 78,431) | 82,718) | |||||||
| Total Oracle Corporation stockholders’ equity (deficit) | 66,772) | 42,508) | 38,495) | 29,951) | 24,154) | 20,451) | 16,730) | 13,746) | 10,816) | 8,704) | 5,623) | 3,866) | 2,370) | 1,073) | (2,421) | (4,246) | (5,875) | (6,220) | (8,696) | (10,101) | (1,541) | |||||||
| Total capital | 192,109) | 172,049) | 173,100) | 138,026) | 115,469) | 113,019) | 113,006) | 102,370) | 95,331) | 95,573) | 93,603) | 92,655) | 91,311) | 91,554) | 89,390) | 86,673) | 85,702) | 69,639) | 69,717) | 68,330) | 81,177) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | 0.65 | 0.75 | 0.78 | 0.78 | 0.79 | 0.82 | 0.85 | 0.87 | 0.89 | 0.91 | 0.94 | 0.96 | 0.97 | 0.99 | 1.03 | 1.05 | 1.07 | 1.09 | 1.12 | 1.15 | 1.02 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.03 | 0.06 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Adobe Inc. | — | — | 0.35 | 0.37 | 0.35 | 0.35 | 0.35 | 0.35 | 0.32 | 0.29 | 0.28 | 0.27 | 0.19 | 0.18 | 0.19 | 0.20 | 0.20 | 0.23 | 0.22 | 0.23 | 0.23 | |||||||
| AppLovin Corp. | — | — | — | 0.53 | 0.60 | 0.62 | 0.70 | 0.75 | 0.87 | 0.76 | 0.79 | 0.81 | 0.82 | 0.71 | 0.74 | 0.68 | 0.63 | 0.63 | 0.63 | 0.63 | 0.62 | |||||||
| Cadence Design Systems Inc. | — | — | — | 0.27 | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | 0.35 | 0.38 | 0.24 | 0.15 | 0.16 | 0.17 | 0.18 | 0.19 | 0.21 | 0.23 | 0.12 | 0.11 | |||||||
| Datadog Inc. | — | — | — | 0.18 | 0.20 | 0.21 | 0.22 | 0.23 | 0.36 | 0.37 | 0.22 | 0.24 | 0.25 | 0.27 | 0.29 | 0.31 | 0.33 | 0.34 | 0.36 | 0.38 | 0.40 | |||||||
| International Business Machines Corp. | — | — | — | 0.64 | 0.67 | 0.65 | 0.69 | 0.70 | 0.70 | 0.67 | 0.70 | 0.70 | 0.72 | 0.72 | 0.71 | 0.72 | 0.73 | 0.70 | 0.72 | 0.72 | 0.74 | |||||||
| Intuit Inc. | — | 0.29 | 0.23 | 0.24 | 0.24 | 0.23 | 0.24 | 0.26 | 0.25 | 0.25 | 0.24 | 0.26 | 0.26 | 0.26 | 0.27 | 0.31 | 0.30 | 0.30 | 0.29 | 0.30 | 0.17 | |||||||
| Microsoft Corp. | — | 0.08 | 0.09 | 0.09 | 0.11 | 0.11 | 0.12 | 0.13 | 0.14 | 0.16 | 0.21 | 0.24 | 0.24 | 0.19 | 0.20 | 0.21 | 0.22 | 0.23 | 0.23 | 0.25 | 0.26 | |||||||
| Palantir Technologies Inc. | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Palo Alto Networks Inc. | — | 0.06 | 0.05 | 0.00 | 0.00 | 0.00 | 0.05 | 0.08 | 0.10 | 0.16 | 0.21 | 0.29 | 0.47 | 0.53 | 0.75 | 0.83 | 0.88 | 0.95 | 0.92 | 0.97 | 0.88 | |||||||
| Salesforce Inc. | 0.53 | 0.20 | 0.12 | 0.12 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.19 | 0.06 | |||||||
| ServiceNow Inc. | — | — | — | 0.38 | 0.11 | 0.10 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.16 | 0.16 | 0.17 | 0.18 | 0.21 | 0.23 | 0.25 | 0.26 | 0.28 | |||||||
| Synopsys Inc. | — | — | 0.24 | 0.25 | 0.25 | 0.32 | 0.34 | 0.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Workday Inc. | 0.31 | 0.28 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.31 | 0.32 | 0.33 | 0.35 | 0.35 | 0.45 | 0.46 | 0.29 | 0.30 | 0.32 | 0.35 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Debt to capital = Total debt ÷ Total capital
= 125,337 ÷ 192,109 = 0.65
2 Click competitor name to see calculations.
An analysis of the solvency metrics indicates a consistent long-term improvement in the debt-to-capital profile. While the ratio experienced an initial peak of 1.15 in November 2021, it followed a sustained downward trajectory over the subsequent five years, concluding at 0.65 by August 2026. This trend signifies a strategic shift toward a more balanced capital structure and reduced reliance on debt relative to total capital.
- Total Debt Trends
- Total debt exhibited fluctuations throughout the period, initially decreasing from 82,718 million USD in August 2021 to a low of 75,859 million USD in May 2022. A period of relative stability followed, with debt levels hovering between 84,000 million USD and 96,000 million USD through May 2024. However, a significant increase in leverage occurred starting in November 2024, with debt peaking at 134,605 million USD in February 2026 before slightly moderating to 125,337 million USD by August 2026.
- Total Capital Growth
- Total capital showed a more aggressive growth pattern than total debt, particularly in the latter half of the analyzed period. After an initial decline to 68,330 million USD in November 2021, capital grew steadily. A substantial acceleration is observed between November 2024 (102,370 million USD) and August 2026 (192,109 million USD). This rapid expansion in the capital base occurred despite the simultaneous increase in nominal debt, suggesting a significant infusion of equity or other non-debt capital components.
- Debt to Capital Ratio Interpretation
- The debt-to-capital ratio remained above 1.00 from August 2021 until February 2023, indicating that total debt exceeded total capital during this timeframe. The ratio broke below the 1.00 threshold in May 2023 (0.99) and continued a steady decline. The most pronounced improvement in the solvency ratio occurred in the final two quarters of the period, dropping from 0.75 in May 2026 to 0.65 in August 2026. This indicates that the growth in total capital significantly outpaced the growth in total debt, resulting in a strengthened solvency position.
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Debt to Capital (including Operating Lease Liability)
Oracle Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Notes payable and other borrowings, current | 7,625) | 7,199) | 9,887) | 8,091) | 9,079) | 7,271) | 8,167) | 8,162) | 9,201) | 10,605) | 5,510) | 6,321) | 4,499) | 4,061) | 5,415) | 9,746) | 16,097) | 3,749) | 6,248) | 4,998) | 6,748) | |||||||
| Notes payable and other borrowings, non-current | 117,712) | 122,342) | 124,718) | 99,984) | 82,236) | 85,297) | 88,109) | 80,462) | 75,314) | 76,264) | 82,470) | 82,468) | 84,442) | 86,420) | 86,396) | 81,173) | 75,480) | 72,110) | 72,165) | 73,433) | 75,970) | |||||||
| Total debt | 125,337) | 129,541) | 134,605) | 108,075) | 91,315) | 92,568) | 96,276) | 88,624) | 84,515) | 86,869) | 87,980) | 88,789) | 88,941) | 90,481) | 91,811) | 90,919) | 91,577) | 75,859) | 78,413) | 78,431) | 82,718) | |||||||
| Operating lease liabilities, non-current | 30,594) | 26,648) | 18,512) | 16,311) | 14,094) | 11,536) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt (including operating lease liability) | 155,931) | 156,189) | 153,117) | 124,386) | 105,409) | 104,104) | 96,276) | 88,624) | 84,515) | 86,869) | 87,980) | 88,789) | 88,941) | 90,481) | 91,811) | 90,919) | 91,577) | 75,859) | 78,413) | 78,431) | 82,718) | |||||||
| Total Oracle Corporation stockholders’ equity (deficit) | 66,772) | 42,508) | 38,495) | 29,951) | 24,154) | 20,451) | 16,730) | 13,746) | 10,816) | 8,704) | 5,623) | 3,866) | 2,370) | 1,073) | (2,421) | (4,246) | (5,875) | (6,220) | (8,696) | (10,101) | (1,541) | |||||||
| Total capital (including operating lease liability) | 222,703) | 198,697) | 191,612) | 154,337) | 129,563) | 124,555) | 113,006) | 102,370) | 95,331) | 95,573) | 93,603) | 92,655) | 91,311) | 91,554) | 89,390) | 86,673) | 85,702) | 69,639) | 69,717) | 68,330) | 81,177) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.70 | 0.79 | 0.80 | 0.81 | 0.81 | 0.84 | 0.85 | 0.87 | 0.89 | 0.91 | 0.94 | 0.96 | 0.97 | 0.99 | 1.03 | 1.05 | 1.07 | 1.09 | 1.12 | 1.15 | 1.02 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.13 | 0.14 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.15 | |||||||
| Adobe Inc. | — | — | 0.37 | 0.38 | 0.37 | 0.36 | 0.36 | 0.36 | 0.33 | 0.30 | 0.29 | 0.29 | 0.21 | 0.20 | 0.21 | 0.22 | 0.23 | 0.25 | 0.24 | 0.25 | 0.25 | |||||||
| Datadog Inc. | — | — | — | 0.23 | 0.24 | 0.26 | 0.27 | 0.28 | 0.39 | 0.40 | 0.27 | 0.29 | 0.30 | 0.31 | 0.33 | 0.35 | 0.36 | 0.37 | 0.39 | 0.40 | 0.42 | |||||||
| International Business Machines Corp. | — | — | — | 0.65 | 0.68 | 0.66 | 0.70 | 0.71 | 0.71 | 0.68 | 0.71 | 0.71 | 0.73 | 0.73 | 0.72 | 0.73 | 0.74 | 0.71 | 0.73 | 0.73 | 0.75 | |||||||
| Intuit Inc. | — | 0.31 | 0.25 | 0.26 | 0.26 | 0.25 | 0.26 | 0.28 | 0.27 | 0.26 | 0.25 | 0.28 | 0.27 | 0.28 | 0.29 | 0.32 | 0.32 | 0.31 | 0.30 | 0.31 | 0.20 | |||||||
| Microsoft Corp. | — | 0.11 | 0.12 | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.18 | 0.20 | 0.24 | 0.27 | 0.28 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.27 | 0.29 | 0.29 | |||||||
| Palantir Technologies Inc. | — | — | — | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.04 | 0.05 | 0.05 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | |||||||
| Palo Alto Networks Inc. | — | 0.08 | 0.07 | 0.04 | 0.04 | 0.04 | 0.09 | 0.12 | 0.15 | 0.21 | 0.26 | 0.33 | 0.51 | 0.56 | 0.76 | 0.84 | 0.89 | 0.95 | 0.92 | 0.97 | 0.88 | |||||||
| Salesforce Inc. | 0.55 | 0.23 | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.20 | 0.23 | 0.13 | |||||||
| ServiceNow Inc. | — | — | — | 0.40 | 0.17 | 0.16 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.21 | 0.22 | 0.23 | 0.24 | 0.24 | 0.29 | 0.31 | 0.32 | 0.34 | 0.36 | |||||||
| Synopsys Inc. | — | — | 0.26 | 0.26 | 0.26 | 0.34 | 0.35 | 0.52 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.10 | |||||||
| Workday Inc. | 0.36 | 0.33 | 0.30 | 0.29 | 0.28 | 0.27 | 0.28 | 0.29 | 0.29 | 0.29 | 0.33 | 0.34 | 0.35 | 0.37 | 0.38 | 0.46 | 0.48 | 0.32 | 0.34 | 0.36 | 0.39 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 155,931 ÷ 222,703 = 0.70
2 Click competitor name to see calculations.
The financial trajectory indicates a sustained improvement in solvency over the analyzed period, characterized by a consistent decline in the debt-to-capital ratio despite significant increases in absolute debt levels in the later stages.
- Debt to Capital Ratio Analysis
- The ratio experienced an initial peak of 1.15 in November 2021. Following this high, a consistent downward trend is observed. The ratio transitioned below the 1.00 threshold in May 2023 (0.99) and continued a steady descent throughout the subsequent quarters, ultimately reaching a period low of 0.70 by August 2026.
- Total Debt Trajectory
- Total debt, including operating lease liabilities, exhibited relative stability between August 2021 and August 2024, fluctuating primarily between 75,859 million and 91,811 million. A period of rapid expansion began in November 2024, with debt levels climbing steeply to reach a peak of 156,189 million in May 2026 before settling at 155,931 million in August 2026.
- Capital Base Expansion
- Total capital demonstrated significant growth, particularly in the final years of the period. From a starting point of 81,177 million in August 2021, total capital increased to 222,703 million by August 2026. This growth accelerated sharply starting in November 2025, rising from 102,370 million in November 2024 to 222,703 million by the end of the period.
- Solvency Correlation
- The decline in the debt-to-capital ratio is attributed to the fact that the expansion of total capital outpaced the accumulation of total debt. Despite the substantial increase in absolute debt between 2024 and 2026, the simultaneous and more aggressive growth of the total capital base effectively reduced the company's relative leverage, improving the overall solvency profile.
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Debt to Assets
Oracle Corp., debt to assets calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Notes payable and other borrowings, current | 7,625) | 7,199) | 9,887) | 8,091) | 9,079) | 7,271) | 8,167) | 8,162) | 9,201) | 10,605) | 5,510) | 6,321) | 4,499) | 4,061) | 5,415) | 9,746) | 16,097) | 3,749) | 6,248) | 4,998) | 6,748) | |||||||
| Notes payable and other borrowings, non-current | 117,712) | 122,342) | 124,718) | 99,984) | 82,236) | 85,297) | 88,109) | 80,462) | 75,314) | 76,264) | 82,470) | 82,468) | 84,442) | 86,420) | 86,396) | 81,173) | 75,480) | 72,110) | 72,165) | 73,433) | 75,970) | |||||||
| Total debt | 125,337) | 129,541) | 134,605) | 108,075) | 91,315) | 92,568) | 96,276) | 88,624) | 84,515) | 86,869) | 87,980) | 88,789) | 88,941) | 90,481) | 91,811) | 90,919) | 91,577) | 75,859) | 78,413) | 78,431) | 82,718) | |||||||
| Total assets | 303,259) | 261,759) | 245,240) | 204,984) | 180,449) | 168,361) | 161,378) | 148,483) | 144,214) | 140,976) | 137,082) | 134,324) | 136,662) | 134,384) | 131,620) | 128,469) | 130,309) | 109,297) | 108,644) | 106,897) | 122,924) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | 0.41 | 0.49 | 0.55 | 0.53 | 0.51 | 0.55 | 0.60 | 0.60 | 0.59 | 0.62 | 0.64 | 0.66 | 0.65 | 0.67 | 0.70 | 0.71 | 0.70 | 0.69 | 0.72 | 0.73 | 0.67 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.02 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Adobe Inc. | — | — | 0.21 | 0.22 | 0.21 | 0.21 | 0.22 | 0.22 | 0.21 | 0.19 | 0.19 | 0.19 | 0.13 | 0.12 | 0.12 | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.16 | |||||||
| AppLovin Corp. | — | — | — | 0.43 | 0.46 | 0.48 | 0.55 | 0.59 | 0.65 | 0.60 | 0.64 | 0.67 | 0.67 | 0.58 | 0.62 | 0.58 | 0.54 | 0.55 | 0.55 | 0.54 | 0.52 | |||||||
| Cadence Design Systems Inc. | — | — | — | 0.21 | 0.24 | 0.24 | 0.26 | 0.26 | 0.27 | 0.28 | 0.31 | 0.19 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.15 | 0.16 | 0.08 | 0.08 | |||||||
| Datadog Inc. | — | — | — | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.27 | 0.28 | 0.16 | 0.17 | 0.18 | 0.19 | 0.21 | 0.22 | 0.24 | 0.25 | 0.26 | 0.28 | 0.29 | |||||||
| International Business Machines Corp. | — | — | — | 0.41 | 0.42 | 0.40 | 0.43 | 0.43 | 0.43 | 0.40 | 0.42 | 0.42 | 0.43 | 0.42 | 0.43 | 0.43 | 0.44 | 0.40 | 0.40 | 0.39 | 0.41 | |||||||
| Intuit Inc. | — | 0.21 | 0.16 | 0.18 | 0.18 | 0.16 | 0.18 | 0.20 | 0.18 | 0.19 | 0.19 | 0.20 | 0.21 | 0.22 | 0.23 | 0.26 | 0.26 | 0.25 | 0.24 | 0.26 | 0.14 | |||||||
| Microsoft Corp. | — | 0.05 | 0.06 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.10 | 0.14 | 0.16 | 0.16 | 0.11 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.16 | 0.16 | |||||||
| Palantir Technologies Inc. | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Palo Alto Networks Inc. | — | 0.04 | 0.03 | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | 0.05 | 0.06 | 0.10 | 0.13 | 0.14 | 0.26 | 0.28 | 0.29 | 0.30 | 0.33 | 0.35 | 0.35 | |||||||
| Salesforce Inc. | 0.37 | 0.13 | 0.09 | 0.09 | 0.09 | 0.08 | 0.09 | 0.09 | 0.10 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.11 | 0.11 | 0.11 | 0.12 | 0.15 | 0.04 | |||||||
| ServiceNow Inc. | — | — | — | 0.24 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.13 | 0.14 | |||||||
| Synopsys Inc. | — | — | 0.21 | 0.21 | 0.21 | 0.28 | 0.30 | 0.42 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Workday Inc. | 0.19 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.18 | 0.21 | 0.22 | 0.22 | 0.22 | 0.24 | 0.31 | 0.32 | 0.18 | 0.20 | 0.20 | 0.22 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Debt to assets = Total debt ÷ Total assets
= 125,337 ÷ 303,259 = 0.41
2 Click competitor name to see calculations.
The overall solvency profile exhibits a significant improvement over the observed period, characterized by a transition from a high-leverage position to a more conservative capital structure. While total debt levels experienced a substantial increase in the later stages, the concurrent and more aggressive growth in total assets resulted in a marked decline in the debt-to-assets ratio.
- Initial Leverage and Volatility (August 2021 – May 2022)
- During the initial phase, the debt-to-assets ratio remained elevated, peaking at 0.73 in November 2021. This period was marked by fluctuations in both total debt and total assets, with the ratio consistently remaining above 0.67, indicating a high reliance on debt financing relative to the asset base.
- Gradual Deleveraging Trend (August 2022 – August 2024)
- A steady downward trend in the debt-to-assets ratio is observed starting in August 2022. The ratio declined from 0.70 to a low of 0.59 by August 2024. This improvement was driven by a combination of stable or slightly decreasing total debt levels and a consistent increase in total assets, suggesting a period of organic growth and balance sheet strengthening.
- Asset Acceleration and Solvency Shift (November 2024 – August 2026)
- The final period is characterized by a dramatic expansion of the balance sheet. Total assets increased from 148,483 million in November 2024 to 303,259 million by August 2026. Despite a corresponding surge in total debt, which peaked at 134,605 million in February 2026, the rate of asset accumulation far outpaced the growth of liabilities. Consequently, the debt-to-assets ratio dropped sharply from 0.60 in November 2024 to a period low of 0.41 by August 2026, representing a substantial increase in long-term solvency.
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Debt to Assets (including Operating Lease Liability)
Oracle Corp., debt to assets (including operating lease liability) calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Notes payable and other borrowings, current | 7,625) | 7,199) | 9,887) | 8,091) | 9,079) | 7,271) | 8,167) | 8,162) | 9,201) | 10,605) | 5,510) | 6,321) | 4,499) | 4,061) | 5,415) | 9,746) | 16,097) | 3,749) | 6,248) | 4,998) | 6,748) | |||||||
| Notes payable and other borrowings, non-current | 117,712) | 122,342) | 124,718) | 99,984) | 82,236) | 85,297) | 88,109) | 80,462) | 75,314) | 76,264) | 82,470) | 82,468) | 84,442) | 86,420) | 86,396) | 81,173) | 75,480) | 72,110) | 72,165) | 73,433) | 75,970) | |||||||
| Total debt | 125,337) | 129,541) | 134,605) | 108,075) | 91,315) | 92,568) | 96,276) | 88,624) | 84,515) | 86,869) | 87,980) | 88,789) | 88,941) | 90,481) | 91,811) | 90,919) | 91,577) | 75,859) | 78,413) | 78,431) | 82,718) | |||||||
| Operating lease liabilities, non-current | 30,594) | 26,648) | 18,512) | 16,311) | 14,094) | 11,536) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt (including operating lease liability) | 155,931) | 156,189) | 153,117) | 124,386) | 105,409) | 104,104) | 96,276) | 88,624) | 84,515) | 86,869) | 87,980) | 88,789) | 88,941) | 90,481) | 91,811) | 90,919) | 91,577) | 75,859) | 78,413) | 78,431) | 82,718) | |||||||
| Total assets | 303,259) | 261,759) | 245,240) | 204,984) | 180,449) | 168,361) | 161,378) | 148,483) | 144,214) | 140,976) | 137,082) | 134,324) | 136,662) | 134,384) | 131,620) | 128,469) | 130,309) | 109,297) | 108,644) | 106,897) | 122,924) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.51 | 0.60 | 0.62 | 0.61 | 0.58 | 0.62 | 0.60 | 0.60 | 0.59 | 0.62 | 0.64 | 0.66 | 0.65 | 0.67 | 0.70 | 0.71 | 0.70 | 0.69 | 0.72 | 0.73 | 0.67 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 0.12 | 0.12 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.07 | 0.08 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | |||||||
| Adobe Inc. | — | — | 0.23 | 0.24 | 0.22 | 0.23 | 0.23 | 0.23 | 0.22 | 0.20 | 0.20 | 0.20 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.17 | 0.17 | 0.18 | 0.18 | |||||||
| Datadog Inc. | — | — | — | 0.17 | 0.18 | 0.19 | 0.21 | 0.22 | 0.31 | 0.32 | 0.21 | 0.22 | 0.23 | 0.23 | 0.25 | 0.27 | 0.27 | 0.28 | 0.30 | 0.31 | 0.32 | |||||||
| International Business Machines Corp. | — | — | — | 0.43 | 0.45 | 0.43 | 0.45 | 0.46 | 0.46 | 0.43 | 0.45 | 0.45 | 0.46 | 0.44 | 0.45 | 0.46 | 0.46 | 0.42 | 0.43 | 0.42 | 0.43 | |||||||
| Intuit Inc. | — | 0.23 | 0.17 | 0.20 | 0.20 | 0.18 | 0.19 | 0.22 | 0.20 | 0.20 | 0.20 | 0.22 | 0.22 | 0.24 | 0.25 | 0.28 | 0.28 | 0.27 | 0.25 | 0.27 | 0.16 | |||||||
| Microsoft Corp. | — | 0.07 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.12 | 0.12 | 0.13 | 0.17 | 0.19 | 0.19 | 0.15 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.19 | 0.19 | |||||||
| Palantir Technologies Inc. | — | — | — | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.03 | 0.04 | 0.04 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | |||||||
| Palo Alto Networks Inc. | — | 0.05 | 0.04 | 0.01 | 0.01 | 0.01 | 0.03 | 0.04 | 0.05 | 0.07 | 0.09 | 0.12 | 0.15 | 0.16 | 0.28 | 0.30 | 0.32 | 0.32 | 0.36 | 0.38 | 0.38 | |||||||
| Salesforce Inc. | 0.39 | 0.15 | 0.12 | 0.12 | 0.12 | 0.11 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.19 | 0.09 | |||||||
| ServiceNow Inc. | — | — | — | 0.27 | 0.10 | 0.09 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.13 | 0.13 | 0.15 | 0.15 | 0.16 | 0.17 | 0.19 | 0.19 | 0.20 | |||||||
| Synopsys Inc. | — | — | 0.23 | 0.23 | 0.23 | 0.30 | 0.31 | 0.45 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | |||||||
| Workday Inc. | 0.24 | 0.21 | 0.21 | 0.21 | 0.20 | 0.19 | 0.20 | 0.21 | 0.21 | 0.20 | 0.24 | 0.24 | 0.25 | 0.24 | 0.26 | 0.33 | 0.34 | 0.20 | 0.23 | 0.24 | 0.25 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 155,931 ÷ 303,259 = 0.51
2 Click competitor name to see calculations.
The analysis of solvency metrics over the period from August 2021 to August 2026 reveals a complex interaction between increasing leverage and aggressive asset expansion. While total debt obligations rose significantly in absolute terms, the overall solvency position improved as asset growth outpaced the accumulation of liabilities.
- Total Debt Trends
- Total debt, including operating lease liabilities, remained relatively stable between 75,859 million USD and 91,811 million USD from August 2021 through August 2024. However, a period of rapid debt accumulation began in November 2024, with obligations climbing from 88,624 million USD to a peak of 156,189 million USD by May 2026. This represents a substantial increase in the company's total leverage toward the end of the analyzed period.
- Total Asset Growth
- Assets exhibited a consistent upward trajectory, growing from 122,924 million USD in August 2021 to 303,259 million USD by August 2026. A significant acceleration in asset acquisition is observed starting in November 2025, where assets grew from 204,984 million USD to over 300,000 million USD within nine months. This expansion provided a critical buffer against the simultaneous increase in total debt.
- Debt to Assets Ratio Performance
- The debt to assets ratio peaked early in the period at 0.73 in November 2021 before entering a general downward trend. Despite the surge in nominal debt throughout 2025, the ratio remained relatively stable between 0.58 and 0.62 because the growth in the asset base mirrored the increase in borrowing. A sharp improvement in solvency is noted in the final quarter, with the ratio falling to 0.51 in August 2026, the lowest point in the recorded history. This indicates that by the end of the period, assets covered liabilities more effectively than at any other point since 2021.
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Financial Leverage
Oracle Corp., financial leverage calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | 303,259) | 261,759) | 245,240) | 204,984) | 180,449) | 168,361) | 161,378) | 148,483) | 144,214) | 140,976) | 137,082) | 134,324) | 136,662) | 134,384) | 131,620) | 128,469) | 130,309) | 109,297) | 108,644) | 106,897) | 122,924) | |||||||
| Total Oracle Corporation stockholders’ equity (deficit) | 66,772) | 42,508) | 38,495) | 29,951) | 24,154) | 20,451) | 16,730) | 13,746) | 10,816) | 8,704) | 5,623) | 3,866) | 2,370) | 1,073) | (2,421) | (4,246) | (5,875) | (6,220) | (8,696) | (10,101) | (1,541) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | 4.54 | 6.16 | 6.37 | 6.84 | 7.47 | 8.23 | 9.65 | 10.80 | 13.33 | 16.20 | 24.38 | 34.74 | 57.66 | 125.24 | — | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 2.16 | 2.15 | 2.10 | 2.10 | 2.07 | 2.05 | 2.05 | 1.98 | 1.95 | 1.89 | 1.93 | 1.99 | 1.98 | 2.01 | 2.05 | 2.14 | 2.16 | 2.16 | 2.15 | |||||||
| Adobe Inc. | — | — | 2.55 | 2.60 | 2.60 | 2.54 | 2.44 | 2.46 | 2.29 | 2.14 | 2.05 | 2.02 | 1.86 | 1.80 | 1.84 | 1.88 | 1.88 | 1.93 | 1.86 | 1.88 | 1.89 | |||||||
| AppLovin Corp. | — | — | — | 2.61 | 3.26 | 3.40 | 4.30 | 5.11 | 9.92 | 5.39 | 5.80 | 6.47 | 6.92 | 4.27 | 4.57 | 3.61 | 3.12 | 3.07 | 3.08 | 3.11 | 3.06 | |||||||
| Cadence Design Systems Inc. | — | — | — | 1.76 | 1.84 | 1.85 | 1.85 | 1.90 | 1.89 | 1.92 | 2.01 | 1.70 | 1.60 | 1.67 | 1.74 | 1.77 | 1.76 | 1.87 | 1.83 | 1.66 | 1.59 | |||||||
| Datadog Inc. | — | — | — | 1.73 | 1.74 | 1.78 | 1.76 | 1.82 | 2.06 | 2.13 | 1.76 | 1.83 | 1.88 | 1.94 | 1.96 | 2.01 | 2.08 | 2.13 | 2.17 | 2.18 | 2.26 | |||||||
| International Business Machines Corp. | — | — | — | 4.41 | 4.74 | 4.65 | 5.24 | 5.40 | 5.42 | 5.02 | 5.49 | 5.57 | 5.90 | 6.00 | 5.60 | 5.96 | 6.19 | 5.80 | 6.27 | 6.57 | 7.00 | |||||||
| Intuit Inc. | — | 1.94 | 1.91 | 1.80 | 1.72 | 1.88 | 1.82 | 1.77 | 1.83 | 1.74 | 1.68 | 1.76 | 1.68 | 1.61 | 1.64 | 1.72 | 1.69 | 1.69 | 1.68 | 1.69 | 1.53 | |||||||
| Microsoft Corp. | — | 1.71 | 1.68 | 1.70 | 1.75 | 1.80 | 1.75 | 1.76 | 1.82 | 1.91 | 1.91 | 1.97 | 2.02 | 2.00 | 1.95 | 1.99 | 2.07 | 2.19 | 2.12 | 2.13 | 2.21 | |||||||
| Palantir Technologies Inc. | — | — | — | 1.19 | 1.21 | 1.20 | 1.23 | 1.24 | 1.24 | 1.27 | 1.28 | 1.28 | 1.27 | 1.30 | 1.31 | 1.35 | 1.35 | 1.35 | 1.39 | 1.40 | 1.40 | |||||||
| Palo Alto Networks Inc. | — | 1.76 | 1.67 | 2.66 | 2.72 | 3.01 | 3.04 | 3.29 | 3.45 | 3.87 | 4.01 | 4.20 | 6.82 | 8.29 | 11.50 | 18.06 | 24.69 | 58.35 | 32.88 | 88.29 | 20.09 | |||||||
| Salesforce Inc. | 3.12 | 1.90 | 1.59 | 1.59 | 1.63 | 1.68 | 1.56 | 1.60 | 1.61 | 1.67 | 1.57 | 1.59 | 1.63 | 1.69 | 1.55 | 1.57 | 1.58 | 1.64 | 1.53 | 1.60 | 1.52 | |||||||
| ServiceNow Inc. | — | — | — | 2.53 | 2.08 | 2.01 | 1.93 | 2.02 | 2.07 | 2.12 | 1.98 | 2.10 | 2.16 | 2.28 | 2.10 | 2.15 | 2.43 | 2.64 | 2.46 | 2.65 | 2.75 | |||||||
| Synopsys Inc. | — | — | 1.53 | 1.54 | 1.55 | 1.70 | 1.75 | 2.40 | 1.40 | 1.45 | 1.51 | 1.54 | 1.58 | 1.68 | 1.67 | 1.68 | 1.70 | 1.71 | 1.66 | 1.66 | 1.65 | |||||||
| Workday Inc. | 2.41 | 2.32 | 2.00 | 1.96 | 1.93 | 1.99 | 1.90 | 1.95 | 1.95 | 2.04 | 2.10 | 2.19 | 2.23 | 2.41 | 2.29 | 2.58 | 2.68 | 2.31 | 2.24 | 2.36 | 2.53 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Financial leverage = Total assets ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 303,259 ÷ 66,772 = 4.54
2 Click competitor name to see calculations.
The financial position of the organization has undergone a significant transformation between August 2021 and August 2026, characterized by an expansion of the asset base and a fundamental shift in the capital structure from a deficit position to positive equity.
- Asset Growth Trends
- Total assets exhibited a general upward trajectory, increasing from 122,924 million USD in August 2021 to 303,259 million USD by August 2026. While there was a period of contraction and stagnation between November 2021 and May 2022, assets grew aggressively in the latter half of the period, with particularly sharp increases observed between November 2025 and August 2026.
- Equity Evolution
- A critical shift occurred in the stockholders' equity, which remained in a deficit from August 2021 through February 2023. The transition to positive equity was achieved in May 2023, with a value of 1,073 million USD. This positive trend accelerated consistently over the subsequent years, culminating in 66,772 million USD by August 2026, indicating a substantial improvement in the organization's net worth and solvency.
- Financial Leverage Reduction
- Financial leverage ratios were only calculable once equity became positive in May 2023. At that inflection point, leverage was extremely high at 125.24. A consistent and steep downward trend followed, with the ratio falling to 10.80 by November 2023 and continuing to decline to 4.54 by August 2026. This precipitous decline reflects a strategic deleveraging of the balance sheet and a reduction in the reliance on debt to finance assets.
The correlation between the expanding equity base and the falling leverage ratio suggests a systematic strengthening of the financial foundation. The move from a negative equity position to a leverage ratio of 4.54 indicates a transition from a high-risk solvency profile to a significantly more stable and conservative financial structure.
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Interest Coverage
Oracle Corp., interest coverage calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income (loss) | 4,760) | 4,304) | 3,721) | 6,135) | 2,927) | 3,427) | 2,936) | 3,151) | 2,929) | 3,143) | 2,401) | 2,503) | 2,420) | 3,318) | 1,896) | 1,741) | 1,548) | 3,188) | 2,319) | (1,247) | 2,457) | |||||||
| Add: Income tax expense | 847) | 1,065) | 695) | 207) | 500) | 726) | 512) | 239) | 240) | 638) | 464) | 217) | (45) | (210) | 322) | 403) | 108) | 436) | 521) | (249) | 224) | |||||||
| Add: Interest expense | 1,428) | 1,439) | 1,180) | 1,057) | 923) | 978) | 892) | 866) | 842) | 878) | 876) | 888) | 872) | 954) | 908) | 856) | 787) | 704) | 667) | 679) | 705) | |||||||
| Earnings before interest and tax (EBIT) | 7,035) | 6,808) | 5,596) | 7,399) | 4,350) | 5,131) | 4,340) | 4,256) | 4,011) | 4,659) | 3,741) | 3,608) | 3,247) | 4,062) | 3,126) | 3,000) | 2,443) | 4,328) | 3,507) | (817) | 3,386) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | 5.26 | 5.25 | 5.43 | 5.51 | 4.94 | 4.96 | 4.96 | 4.81 | 4.60 | 4.34 | 4.08 | 3.88 | 3.74 | 3.60 | 3.96 | 4.41 | 3.33 | 3.78 | 3.98 | 4.23 | 6.06 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | — | — | 41.06 | 40.77 | 39.97 | 45.94 | 57.86 | 80.38 | 135.71 | 165.48 | 175.20 | 175.18 | 168.23 | 193.31 | 220.23 | 212.89 | 217.31 | 195.34 | 188.01 | 133.08 | 133.32 | |||||||
| Adobe Inc. | — | — | 36.70 | 35.91 | 34.99 | 34.21 | 35.26 | 37.00 | 40.93 | 42.01 | 46.90 | 53.43 | 58.12 | 61.17 | 58.59 | 55.57 | 53.27 | 54.64 | 54.21 | 54.34 | 53.39 | |||||||
| AppLovin Corp. | — | — | — | 26.42 | 23.36 | 20.09 | 13.86 | 10.72 | 8.08 | 5.95 | 5.19 | 3.95 | 3.37 | 2.38 | 1.52 | 1.12 | 0.76 | -0.19 | 0.25 | 0.19 | 0.02 | |||||||
| Cadence Design Systems Inc. | — | — | — | 15.57 | 14.39 | 14.06 | 13.53 | 13.50 | 15.95 | 19.37 | 24.99 | 33.48 | 36.67 | 36.43 | 32.16 | 34.13 | 38.63 | 46.58 | 57.84 | 58.34 | 52.92 | |||||||
| Datadog Inc. | — | — | — | 18.53 | 14.75 | 12.49 | 12.47 | 15.42 | 22.90 | 29.85 | 37.27 | 33.23 | 24.08 | 10.56 | -1.85 | -5.72 | -4.15 | -1.30 | 0.81 | 1.72 | 1.24 | |||||||
| International Business Machines Corp. | — | — | — | 6.41 | 6.41 | 6.34 | 6.05 | 4.44 | 4.39 | 4.39 | 4.69 | 6.33 | 6.21 | 6.41 | 6.44 | 2.34 | 2.25 | 1.95 | 1.59 | 6.01 | 5.40 | |||||||
| Intuit Inc. | — | 24.50 | 24.85 | 23.55 | 22.15 | 20.57 | 18.45 | 16.48 | 15.76 | 15.67 | 15.74 | 14.07 | 13.20 | 13.05 | 14.66 | 16.17 | 19.99 | 32.38 | 55.36 | 62.71 | 93.29 | |||||||
| Palantir Technologies Inc. | — | — | — | — | — | — | — | — | — | — | 3,786.90 | 499.52 | 149.97 | 69.33 | 34.43 | -5.32 | -49.82 | -87.97 | -176.15 | -201.09 | -194.27 | |||||||
| Palo Alto Networks Inc. | — | — | 6,985.00 | 2,071.33 | 911.61 | 532.90 | 427.74 | 269.85 | 163.77 | 120.07 | 72.96 | 46.08 | 35.96 | 21.82 | 10.40 | 4.05 | -1.99 | -6.56 | -4.28 | -3.42 | -2.65 | |||||||
| Salesforce Inc. | 33.39 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Synopsys Inc. | — | — | 3.08 | 2.26 | 2.97 | 4.12 | 5.50 | 11.64 | 31.24 | 44.06 | 78.90 | 174.76 | 852.56 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q1 2027 Calculation
Interest coverage
= (EBITQ1 2027
+ EBITQ4 2026
+ EBITQ3 2026
+ EBITQ2 2026)
÷ (Interest expenseQ1 2027
+ Interest expenseQ4 2026
+ Interest expenseQ3 2026
+ Interest expenseQ2 2026)
= (7,035 + 6,808 + 5,596 + 7,399)
÷ (1,428 + 1,439 + 1,180 + 1,057)
= 5.26
2 Click competitor name to see calculations.
The solvency profile exhibits a period of volatility followed by a sustained recovery in the ability to service debt. While there was a notable contraction in the interest coverage ratio during the initial phase of the observed period, a strong upward trajectory in operating earnings eventually outpaced the rise in financing costs, resulting in a strengthened solvency position by the end of the timeline.
- Earnings Before Interest and Tax (EBIT)
- Operating profitability experienced significant volatility in late 2021, marked by a sharp decline to negative 817 million in November 2021. Following this dip, EBIT stabilized between 3 billion and 4.6 billion from 2022 through mid-2024. A substantial growth phase is observed starting in 2025, with earnings peaking at 7.399 billion in November 2025 and maintaining a elevated range above 5.5 billion through August 2026.
- Interest Expense
- Interest costs remained relatively contained between 667 million and 954 million from February 2022 through August 2024. However, a period of escalation began in May 2025, with expenses rising steadily to peak at 1.439 billion in May 2026. This trend indicates an increase in the company's debt load or a shift toward higher borrowing rates during the latter part of the period.
- Interest Coverage Ratio
- The interest coverage ratio declined from an initial 6.06 in August 2021 to a low of 3.33 in August 2022, reflecting the impact of the earnings contraction and rising interest costs. A recovery trend is evident starting in early 2024, with the ratio climbing consistently to reach 5.51 by November 2025. The period concludes with a ratio of 5.26, indicating that despite higher absolute interest expenses, the significant expansion in EBIT has improved the overall margin of safety for debt servicing.
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