Oracle Corp. (NYSE:ORCL)

The analysis of the financial ratios over the observed periods reveals distinct trends in asset and equity utilization efficiency.

Net Fixed Asset Turnover

The ratio exhibits a consistent downward trend from August 2020 through November 2025. Starting at 6.13, it gradually declines across each quarter, reaching a low of 0.90 by the end of the observed period. This continuous decrease suggests a diminishing efficiency in generating revenue from net fixed assets over time, indicating that either fixed assets are not being utilized to their full potential or revenue generation relative to these assets is weakening.

Total Asset Turnover

This ratio remains relatively stable with minor fluctuations. Beginning at 0.35 in August 2020, it fluctuates slightly around the 0.35 to 0.39 range across most quarters. A slight decrease is observed towards the final periods, falling to 0.30 by November 2025. The overall stability followed by a modest decline suggests that, while the firm maintains a stable efficiency in using its total assets to generate sales, there is a slight weakening in asset utilization towards the end of the timeline.

Equity Turnover

The equity turnover ratio shows marked volatility with incomplete data for several periods. Initially, it fluctuates in the range of approximately 4 to 7.7, then data is missing for several quarters. A notable spike occurs starting in mid-2023, reaching an exceptionally high value of 46.56, followed by a sharp and consistent descent down to 2.04 by November 2025. This pattern indicates an abnormal increase in sales relative to shareholders' equity during that spike period, possibly due to one-time factors or accounting adjustments, after which the ratio normalizes to more typical levels.

The financial data exhibits several observable trends regarding revenues, net property, plant and equipment (PP&E), and net fixed asset turnover ratios over the analyzed quarters.

Revenues

Revenues demonstrate a general upward trend throughout the entire period, increasing from 9,367 million US dollars in August 2020 to 16,058 million US dollars by November 2025. Despite some fluctuations, such as a dip in late 2021 and slight variability in 2023, the overall growth in revenues is consistent, indicating expanding business operations or improving market conditions.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment shows a marked and continuous increase over the same timeline. Starting at 6,401 million US dollars in August 2020, it rises substantially to 67,875 million US dollars by November 2025. This substantial increase suggests significant capital investments in fixed assets which could be related to expansion, modernization, or increased operational capacity.

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibits a pronounced declining trend. It falls from a high of 6.13 in August 2020 down to 0.90 by November 2025. This decline indicates that while the company’s revenues are growing, they are increasing at a much slower rate relative to the investments in net fixed assets. The decreasing ratio may imply reduced efficiency in using fixed assets to generate sales or could reflect the lag time between investing in assets and realizing corresponding revenue growth.

In summary, the company shows expanding revenues supported by substantial increases in fixed asset investments. However, the declining net fixed asset turnover ratio suggests a need to monitor asset utilization efficiency more closely, as the growth in revenues does not keep pace proportionally with the rising capital expenditure on fixed assets.

Revenue Trends

Revenue demonstrates a generally upward trajectory over the observed periods. Beginning at $9,367 million in August 2020, there is consistent growth with fluctuations aligned to quarterly variations. Notable increases occur towards the middle and later stages, reaching peak figures above $16,000 million by late 2025. Some quarters, such as May 2021 and November 2022, show marked spikes in revenue, indicating periods of accelerated sales or contract wins. The data reflects a resilient top-line expansion.

Total Assets Analysis

Total assets exhibit an overall increasing trend with occasional declines. Initially recorded at $113,546 million, assets decreased slightly in late 2020 and early 2021 but resumed growth subsequently. The development is steady, culminating in a significant rise by the end of the timeline, with assets surpassing $200,000 million by November 2025. Such growth indicates asset base expansion, potentially through acquisitions, investments, or retained earnings. Minor contractions within certain quarters suggest periodic asset rebalancing or disposals.

Total Asset Turnover Dynamics

The total asset turnover ratio, an indicator of revenue generated per unit of assets, starts at 0.35 and shows moderate fluctuations throughout the periods. There is a dip during early 2021, reaching as low as 0.31, followed by periods of improvement to approximately 0.39 in late 2021 and early 2022. Generally, the ratio hovers between 0.33 and 0.38, with a slight declining trend in the most recent quarters, ending near 0.30 by mid to late 2025. This suggests that while assets are growing, the efficiency of asset utilization to generate revenues may be decreasing slightly over time.

General Observations

The company shows substantial revenue growth accompanied by significant asset accumulation, reflecting expansion efforts. However, the subdued or slightly declining asset turnover ratio in later periods points to a potential reduction in how effectively the expanded asset base is leveraged for generating revenue. The firm may need to focus on improving operational efficiency or asset deployment to sustain or enhance financial performance going forward.

The analysis of the quarterly financial data reveals several noteworthy trends in the company's performance and financial position over the examined periods.

Revenues

The revenue figures demonstrate a generally upward trajectory across most quarters. There is a clear increase from approximately 9,367 million US dollars in August 2020, reaching a peak of around 16,058 million US dollars by November 2025. Periodic fluctuations are observable, such as slight declines or plateaus in some quarters (e.g., a dip from May 2021 to August 2021), but the long-term trend indicates consistent growth in revenue generation.

Total Stockholders’ Equity

This metric shows substantial volatility and significant shifts over the periods. Initially positive at 9,491 million US dollars in August 2020, the equity value drops substantially, turning negative from August 2021 through February 2023, with the lowest point around November 2021 at approximately -10,101 million US dollars. From May 2023 onward, there is a marked recovery, with equity steadily increasing and becoming strongly positive again, reaching nearly 29,951 million US dollars by November 2025. This pattern suggests a period of financial distress or restructuring followed by successful recovery and strengthening of the equity base.

Equity Turnover

Equity turnover ratios are only sporadically reported in the early periods but become available and show high variability later. The ratio was around 4.13 to 7.73 until May 2021, then is not reported for several quarters, and finally recorded very high values in the 2023-2025 timeframe starting from 46.56 in May 2023 and progressively declining to 2.04 by November 2025. The initial very high equity turnover followed by a decline suggests a phase of high efficiency in generating revenues relative to equity during the recovery period, which normalizes as equity grows and the firm stabilizes.

Overall, the financial data reflects a dynamic period with significant challenges impacting stockholders' equity mid-term, followed by a strong recovery phase. Revenue growth remains consistent and robust, indicating successful operational performance despite fluctuations in equity. The equity turnover ratios imply a fluctuating relationship between equity levels and revenue generation, consistent with the periods of equity decline and subsequent recovery.