Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Oracle Corp., long-term (investment) activity 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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a clear declining trend over the six-year period. Starting at 6.26 in 2020, the ratio steadily decreases each year to reach 1.32 by 2025. This significant reduction suggests that the efficiency in using net fixed assets to generate sales has weakened considerably.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When including operating lease right-of-use assets, the turnover ratio also decreases consistently from 4.74 in 2020 to 1.01 in 2025. This trend parallels the net fixed asset turnover without leases, reinforcing the observation of declining asset utilization efficiency over time.
- Total Asset Turnover
- The total asset turnover remains relatively stable throughout the period, fluctuating slightly between 0.31 and 0.39. The ratio dips from 0.34 in 2020 to 0.31 in 2021, then rises to a peak of 0.39 in 2022, and subsequently adjusts to around 0.34 by 2025. This stability suggests a consistent level of overall asset use in generating revenue.
- Equity Turnover
- The equity turnover ratio exhibits considerable volatility and irregularity. It rises sharply from 3.24 in 2020 to 7.73 in 2021, then data is missing for 2022. A notable spike appears in 2023 with a value of 46.56, followed by a steep decline to 6.08 in 2024 and further down to 2.81 in 2025. This erratic behavior may indicate fluctuations in the company's leverage, equity base, or revenue recognition affecting this ratio's reliability over time.
Net Fixed Asset Turnover
Oracle Corp., net fixed asset turnover 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) | |||||||
| Revenues | 57,399) | 52,961) | 49,954) | 42,440) | 40,479) | 39,068) | |
| Property, plant and equipment, net | 43,522) | 21,536) | 17,069) | 9,716) | 7,049) | 6,244) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 1.32 | 2.46 | 2.93 | 4.37 | 5.74 | 6.26 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Accenture PLC | — | 42.66 | 41.90 | 37.12 | 30.83 | 28.68 | |
| Adobe Inc. | — | 11.11 | 9.56 | 9.23 | 9.44 | 8.48 | |
| Cadence Design Systems Inc. | — | 10.13 | 10.14 | 9.59 | 9.77 | 8.62 | |
| CrowdStrike Holdings Inc. | 5.01 | 4.93 | 4.55 | 5.57 | 5.24 | 3.54 | |
| Fair Isaac Corp. | — | 44.65 | 138.02 | 78.34 | 47.17 | 27.89 | |
| International Business Machines Corp. | — | 10.95 | 11.25 | 11.35 | 10.07 | 7.33 | |
| Intuit Inc. | — | 16.14 | 14.83 | 14.33 | 12.35 | 10.46 | |
| Microsoft Corp. | — | 1.81 | 2.22 | 2.66 | 2.81 | 3.24 | |
| Palantir Technologies Inc. | — | 72.29 | 46.59 | 27.55 | 49.26 | 36.99 | |
| Palo Alto Networks Inc. | — | 22.23 | 19.44 | 15.38 | 13.37 | 9.79 | |
| Salesforce Inc. | 11.71 | 9.45 | 8.47 | 9.41 | 8.64 | 7.20 | |
| ServiceNow Inc. | — | 6.23 | 6.61 | 6.88 | 7.70 | 6.85 | |
| Synopsys Inc. | — | 10.88 | 10.48 | 10.51 | 8.90 | 7.62 | |
| Workday Inc. | 6.82 | 5.88 | 5.17 | 4.58 | 4.44 | 3.87 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Software & Services | — | 3.08 | 3.75 | 4.49 | 4.73 | 5.15 | |
| Net Fixed Asset Turnover, Industry | |||||||
| Information Technology | — | 3.47 | 3.78 | 4.44 | 4.74 | 4.57 | |
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
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= 57,399 ÷ 43,522 = 1.32
2 Click competitor name to see calculations.
- Revenues
- There is a consistent upward trend in revenues over the six-year period from 2020 to 2025. Revenues increased from approximately 39.1 billion USD in 2020 to nearly 57.4 billion USD in 2025. The growth appears steady, with an acceleration notable between 2022 and 2023, where the increase was about 7.5 billion USD. This indicates a positive sales performance and potentially expanding market presence or pricing power.
- Property, plant and equipment, net
- Net property, plant, and equipment (PP&E) values show an accelerating increase throughout the period. Starting at around 6.2 billion USD in 2020, the value nearly doubles by 2023 reaching approximately 17.1 billion USD, then rises sharply to 43.5 billion USD by 2025. This significant growth suggests substantial capital investments, possibly in infrastructure or technology assets, indicating an expansion of the company's operational capacity or modernization efforts.
- Net fixed asset turnover ratio
- The net fixed asset turnover ratio exhibits a declining trend over the years. Beginning at 6.26 in 2020, it steadily decreases to 1.32 by 2025. This decline implies that the efficiency with which the company is generating revenues from its fixed assets is decreasing. This could be due to the rapid increase in fixed assets outpacing revenue growth, possibly reflecting recent capital expenditures that have not yet translated into proportional revenue increases.
- Overall insights
- The company demonstrates strong revenue growth alongside significant capital expenditures leading to increased net fixed assets. However, the decreasing fixed asset turnover ratio highlights a potential lag in utilizing these assets efficiently or a shift in asset structure. It may indicate a strategic investment phase that could result in higher revenues in future periods once the new assets become fully operational.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Oracle Corp., net fixed asset turnover (including operating lease, right-of-use asset) 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) | |||||||
| Revenues | 57,399) | 52,961) | 49,954) | 42,440) | 40,479) | 39,068) | |
| Property, plant and equipment, net | 43,522) | 21,536) | 17,069) | 9,716) | 7,049) | 6,244) | |
| Operating lease ROU assets | 13,145) | 7,290) | 4,600) | 3,500) | 2,600) | 2,000) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 56,667) | 28,826) | 21,669) | 13,216) | 9,649) | 8,244) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.01 | 1.84 | 2.31 | 3.21 | 4.20 | 4.74 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Accenture PLC | — | 15.17 | 15.38 | 13.17 | 10.48 | 9.37 | |
| Adobe Inc. | — | 9.70 | 8.13 | 7.61 | 7.46 | 6.42 | |
| Cadence Design Systems Inc. | — | 7.68 | 7.38 | 6.57 | 6.85 | 6.04 | |
| CrowdStrike Holdings Inc. | 4.76 | 4.57 | 4.21 | 4.97 | 4.30 | 3.54 | |
| Fair Isaac Corp. | — | 25.24 | 41.28 | 25.38 | 17.51 | 12.44 | |
| International Business Machines Corp. | — | 7.03 | 7.09 | 7.37 | 6.43 | 5.00 | |
| Intuit Inc. | — | 11.47 | 9.99 | 8.86 | 8.30 | 8.00 | |
| Microsoft Corp. | — | 1.59 | 1.93 | 2.26 | 2.37 | 2.70 | |
| Palantir Technologies Inc. | — | 11.92 | 9.65 | 7.07 | 6.21 | 4.43 | |
| Palo Alto Networks Inc. | — | 10.75 | 11.16 | 9.17 | 7.32 | 5.62 | |
| Salesforce Inc. | 7.03 | 5.76 | 4.76 | 4.65 | 3.75 | 3.16 | |
| ServiceNow Inc. | — | 4.47 | 4.33 | 4.18 | 4.34 | 4.06 | |
| Synopsys Inc. | — | 5.43 | 5.19 | 4.87 | 4.35 | 3.88 | |
| Workday Inc. | 5.36 | 4.77 | 4.29 | 3.75 | 3.11 | 2.96 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Software & Services | — | 2.54 | 3.04 | 3.50 | 3.58 | 3.82 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Information Technology | — | 3.05 | 3.32 | 3.85 | 4.03 | 3.87 | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 57,399 ÷ 56,667 = 1.01
2 Click competitor name to see calculations.
The financial data demonstrates notable trends in revenues, property, plant and equipment, as well as asset utilization efficiency over the observed periods.
- Revenues
- There is a consistent upward trend in revenues. Starting at 39,068 million US dollars in 2020, revenues increased steadily each year, reaching 57,399 million US dollars in 2025. This represents a growth of approximately 47% over the six-year period, indicating strong top-line expansion.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment (including operating lease right-of-use assets) also exhibits substantial growth throughout the years. The value rose from 8,244 million US dollars in 2020 to 56,667 million US dollars in 2025. The most pronounced increase occurred from 2022 onward, with the asset base more than quadrupling between 2022 and 2025. This suggests significant investment or capitalizing of leased assets.
- Net Fixed Asset Turnover Ratio
- Conversely, the net fixed asset turnover ratio shows a declining trend over the same period. It decreased from 4.74 in 2020 to 1.01 in 2025. This ratio measures the efficiency of the company in generating revenues from its net fixed assets. The steady decline implies that although the asset base is increasing sharply, the corresponding revenue generation relative to these assets is not increasing at the same pace, indicating a reduction in asset utilization efficiency.
In summary, the data reveals robust revenue growth accompanied by aggressive expansion or capitalization of fixed assets which has led to a marked decrease in net fixed asset turnover. This pattern suggests a strategic focus on scaling asset investments, potentially to support future revenue growth, but also signals a need to monitor asset productivity closely.
Total Asset Turnover
Oracle Corp., total asset turnover 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) | |||||||
| Revenues | 57,399) | 52,961) | 49,954) | 42,440) | 40,479) | 39,068) | |
| Total assets | 168,361) | 140,976) | 134,384) | 109,297) | 131,107) | 115,438) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 0.34 | 0.38 | 0.37 | 0.39 | 0.31 | 0.34 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Accenture PLC | — | 1.16 | 1.25 | 1.30 | 1.17 | 1.20 | |
| Adobe Inc. | — | 0.71 | 0.65 | 0.65 | 0.58 | 0.53 | |
| Cadence Design Systems Inc. | — | 0.52 | 0.72 | 0.69 | 0.68 | 0.68 | |
| CrowdStrike Holdings Inc. | 0.45 | 0.46 | 0.45 | 0.40 | 0.32 | 0.34 | |
| Fair Isaac Corp. | — | 1.00 | 0.96 | 0.96 | 0.84 | 0.81 | |
| International Business Machines Corp. | — | 0.46 | 0.46 | 0.48 | 0.43 | 0.47 | |
| Intuit Inc. | — | 0.51 | 0.52 | 0.46 | 0.62 | 0.70 | |
| Microsoft Corp. | — | 0.48 | 0.51 | 0.54 | 0.50 | 0.47 | |
| Palantir Technologies Inc. | — | 0.45 | 0.49 | 0.55 | 0.47 | 0.41 | |
| Palo Alto Networks Inc. | — | 0.40 | 0.48 | 0.45 | 0.42 | 0.38 | |
| Salesforce Inc. | 0.37 | 0.35 | 0.32 | 0.28 | 0.32 | 0.31 | |
| ServiceNow Inc. | — | 0.54 | 0.52 | 0.54 | 0.55 | 0.52 | |
| Synopsys Inc. | — | 0.47 | 0.57 | 0.54 | 0.48 | 0.46 | |
| Workday Inc. | 0.47 | 0.44 | 0.46 | 0.49 | 0.50 | 0.53 | |
| Total Asset Turnover, Sector | |||||||
| Software & Services | — | 0.49 | 0.51 | 0.53 | 0.49 | 0.48 | |
| Total Asset Turnover, Industry | |||||||
| Information Technology | — | 0.58 | 0.61 | 0.65 | 0.62 | 0.58 | |
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
Total asset turnover = Revenues ÷ Total assets
= 57,399 ÷ 168,361 = 0.34
2 Click competitor name to see calculations.
- Revenues
- Revenues have demonstrated a consistent upward trend over the observed periods, increasing from 39,068 million USD in May 2020 to 57,399 million USD in May 2025. The growth is steady, with notable acceleration between May 2021 and May 2023, where revenues rose from 40,479 to 49,954 million USD. This overall increase suggests positive sales growth and expanding business operations.
- Total Assets
- Total assets exhibit some fluctuations but generally show an increasing pattern. The asset base declined from 131,107 million USD in May 2021 to 109,297 million USD in May 2022, indicating a possible asset divestiture or write-down during that period. Following this dip, assets rebounded significantly to reach 168,361 million USD by May 2025, the highest value in the series, reflecting investment or acquisition activities and growth in asset holdings.
- Total Asset Turnover
- The total asset turnover ratio varies between 0.31 and 0.39 across the years. Initially, it decreases from 0.34 in May 2020 to 0.31 in May 2021, before rising to 0.39 in May 2022, indicating improved efficiency in asset utilization for that year. Subsequently, the ratio exhibits a modest decline and stabilization around 0.34-0.38, ending at 0.34 in May 2025. This suggests that despite increasing asset levels, revenue generation relative to assets has not consistently improved, pointing to moderate efficiency in the use of assets to drive sales.
Equity Turnover
Oracle Corp., equity turnover 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) | |||||||
| Revenues | 57,399) | 52,961) | 49,954) | 42,440) | 40,479) | 39,068) | |
| Total Oracle Corporation stockholders’ equity (deficit) | 20,451) | 8,704) | 1,073) | (6,220) | 5,238) | 12,074) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 2.81 | 6.08 | 46.56 | — | 7.73 | 3.24 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Accenture PLC | — | 2.29 | 2.50 | 2.79 | 2.59 | 2.61 | |
| Adobe Inc. | — | 1.52 | 1.18 | 1.25 | 1.07 | 0.97 | |
| Cadence Design Systems Inc. | — | 0.99 | 1.20 | 1.30 | 1.09 | 1.08 | |
| CrowdStrike Holdings Inc. | 1.21 | 1.33 | 1.53 | 1.42 | 1.00 | 0.65 | |
| Fair Isaac Corp. | — | — | — | — | — | 3.91 | |
| International Business Machines Corp. | — | 2.30 | 2.75 | 2.76 | 3.03 | 3.57 | |
| Intuit Inc. | — | 0.88 | 0.83 | 0.77 | 0.98 | 1.50 | |
| Microsoft Corp. | — | 0.91 | 1.03 | 1.19 | 1.18 | 1.21 | |
| Palantir Technologies Inc. | — | 0.57 | 0.64 | 0.74 | 0.67 | 0.72 | |
| Palo Alto Networks Inc. | — | 1.55 | 3.94 | 26.20 | 6.71 | 3.09 | |
| Salesforce Inc. | 0.62 | 0.58 | 0.54 | 0.46 | 0.51 | 0.50 | |
| ServiceNow Inc. | — | 1.14 | 1.18 | 1.44 | 1.60 | 1.59 | |
| Synopsys Inc. | — | 0.68 | 0.95 | 0.92 | 0.79 | 0.75 | |
| Workday Inc. | 0.93 | 0.90 | 1.11 | 1.13 | 1.32 | 1.46 | |
| Equity Turnover, Sector | |||||||
| Software & Services | — | 1.16 | 1.30 | 1.44 | 1.44 | 1.51 | |
| Equity Turnover, Industry | |||||||
| Information Technology | — | 1.42 | 1.57 | 1.74 | 1.80 | 1.82 | |
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
Equity turnover = Revenues ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 57,399 ÷ 20,451 = 2.81
2 Click competitor name to see calculations.
- Revenues
- The revenue figures demonstrate a consistent upward trend across the periods analyzed. Starting at $39,068 million in 2020, revenues increased steadily each year, reaching $57,399 million by 2025. This indicates sustained growth in the company's operations and market performance over the six-year span.
- Total Oracle Corporation Stockholders’ Equity (Deficit)
- The stockholders' equity shows significant volatility during the period. It started at $12,074 million in 2020 and sharply declined to $5,238 million in 2021. The equity turned negative in 2022, with a deficit of $6,220 million, suggesting challenges in retaining or generating net assets during that year. However, from 2023 onwards, there was a recovery trend, with equity increasing to $1,073 million in 2023, $8,704 million in 2024, and further to $20,451 million in 2025. This recovery and subsequent growth suggest improved financial stability and asset accumulation after the negative equity period.
- Equity Turnover Ratio
- The equity turnover ratio reflects substantial fluctuations. It started at 3.24 in 2020 and more than doubled to 7.73 in 2021. There is a missing value for 2022, possibly due to the negative equity figure that year, which could make the ratio calculation unreliable or not meaningful. The ratio exhibits an unusually high spike to 46.56 in 2023, which coincides with positive but still relatively low equity that year, indicating extremely high revenue generation relative to equity. In the subsequent years, the ratio declines to 6.08 in 2024 and further to 2.81 in 2025, reflecting a normalization as equity levels grow significantly and revenues also increase.