Stock Analysis on Net
Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

Analysis of Profitability Ratios

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

Oracle Corp., profitability ratios

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Return on Sales
Gross profit margin 80.59% 79.68% 79.76% 79.71% 80.20% 79.81%
Operating profit margin 37.58% 35.57% 34.26% 34.34% 33.69% 34.02%
Net profit margin 33.96% 25.94% 28.05% 9.60% 24.74% 24.03%
Return on Investment
Return on equity (ROE) 262.43% 83.94% 50.87% 8.37% 17.33% 18.82%
Return on assets (ROA) 10.48% 8.78% 10.20% 2.79% 6.92% 7.93%

Based on: 10-K (filing date: 2021-06-21), 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Oracle Corp.’s gross profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Oracle Corp.’s operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Oracle Corp.’s net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Oracle Corp.’s ROE improved from 2019 to 2020 and from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. Oracle Corp.’s ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Gross Profit Margin

Oracle Corp., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Gross profit 32,624  31,130  31,511  31,750  30,259  29,568 
Revenues 40,479  39,068  39,506  39,831  37,728  37,047 
Profitability Ratio
Gross profit margin1 80.59% 79.68% 79.76% 79.71% 80.20% 79.81%
Benchmarks
Gross Profit Margin, Competitors2
Accenture PLC 32.38% 31.53% 30.81% 29.91% 30.00% 29.53%
Adobe Inc. 86.62% 85.03% 86.77% 86.16% 86.00%
Autodesk Inc. 91.11% 90.08% 88.87% 85.25% 83.17% 85.20%
Automatic Data Processing Inc. 42.42% 42.12% 42.95% 41.15% 41.28% 41.37%
Fidelity National Information Services Inc. 33.49% 36.03% 33.88% 32.25% 32.55%
Fiserv Inc. 47.40% 47.88% 47.30% 46.91% 46.25%
International Business Machines Corp. 48.32% 47.30% 46.41% 45.78% 47.92%
Intuit Inc. 82.53% 82.05% 82.80% 83.62% 84.37% 83.98%
Microsoft Corp. 68.93% 67.78% 65.90% 65.25% 61.91% 61.58%
PayPal Holdings Inc. 46.62% 44.94% 46.53% 48.87% 47.42%
salesforce.com inc. 74.41% 75.23% 74.02% 73.54% 73.38% 75.18%
ServiceNow Inc. 78.16% 76.98% 76.13% 74.15% 71.33%

Based on: 10-K (filing date: 2021-06-21), 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22).

1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 32,624 ÷ 40,479 = 80.59%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Oracle Corp.’s gross profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Operating Profit Margin

Oracle Corp., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Operating income 15,213  13,896  13,535  13,679  12,710  12,604 
Revenues 40,479  39,068  39,506  39,831  37,728  37,047 
Profitability Ratio
Operating profit margin1 37.58% 35.57% 34.26% 34.34% 33.69% 34.02%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 15.08% 14.69% 14.59% 14.04% 12.60% 13.82%
Adobe Inc. 32.93% 29.25% 31.45% 29.69% 25.51%
Autodesk Inc. 16.60% 10.48% -0.97% -24.75% -24.60% 0.05%
Automatic Data Processing Inc. 22.16% 21.53% 21.34% 18.85% 18.80% 18.77%
Fidelity National Information Services Inc. 4.40% 9.38% 17.31% 16.35% 14.05%
Fiserv Inc. 12.47% 15.79% 30.10% 26.90% 26.25%
International Business Machines Corp. 9.22% 13.67% 16.61% 14.91% 16.40%
Intuit Inc. 25.95% 28.34% 27.33% 25.10% 26.95% 26.46%
Mastercard Inc. 52.81% 57.24% 48.71% 52.99% 53.46%
Microsoft Corp. 41.59% 37.03% 34.14% 31.77% 24.82% 23.65%
PayPal Holdings Inc. 15.33% 15.30% 14.20% 16.24% 14.63%
salesforce.com inc. 2.14% 1.74% 4.03% 2.25% 0.77% 1.72%
ServiceNow Inc. 4.40% 1.22% -1.63% -5.25% -30.41%
Visa Inc. 64.46% 65.29% 62.86% 66.15% 52.27%
Operating Profit Margin, Sector
Software & Services 26.54% 26.97% 26.30% 23.78% 22.81%
Operating Profit Margin, Industry
Information Technology 25.78% 26.62% 27.30% 24.93% 23.63%

Based on: 10-K (filing date: 2021-06-21), 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22).

1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 15,213 ÷ 40,479 = 37.58%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Oracle Corp.’s operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Net Profit Margin

Oracle Corp., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Net income 13,746  10,135  11,083  3,825  9,335  8,901 
Revenues 40,479  39,068  39,506  39,831  37,728  37,047 
Profitability Ratio
Net profit margin1 33.96% 25.94% 28.05% 9.60% 24.74% 24.03%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 11.69% 11.52% 11.06% 9.76% 9.37% 11.82%
Adobe Inc. 40.88% 26.42% 28.69% 23.20% 19.96%
Autodesk Inc. 31.88% 6.55% -3.14% -27.56% -28.66% -13.20%
Automatic Data Processing Inc. 17.32% 16.91% 16.17% 12.16% 14.00% 12.79%
Fidelity National Information Services Inc. 1.26% 2.88% 10.04% 14.46% 6.15%
Fiserv Inc. 6.45% 8.77% 20.38% 21.88% 16.89%
International Business Machines Corp. 7.59% 12.22% 10.97% 7.27% 14.86%
Intuit Inc. 21.41% 23.78% 22.95% 20.31% 18.76% 20.86%
Mastercard Inc. 41.90% 48.08% 39.19% 31.33% 37.67%
Microsoft Corp. 36.45% 30.96% 31.18% 15.02% 23.57% 19.69%
PayPal Holdings Inc. 19.59% 13.84% 13.31% 13.71% 12.92%
salesforce.com inc. 19.16% 0.74% 8.36% 1.22% 2.14% -0.71%
ServiceNow Inc. 2.62% 18.11% -1.02% -7.71% -32.49%
Visa Inc. 49.74% 52.57% 49.98% 36.49% 39.72%
Net Profit Margin, Sector
Software & Services 21.91% 23.32% 15.36% 17.24% 17.88%
Net Profit Margin, Industry
Information Technology 21.95% 22.94% 19.47% 18.48% 18.28%

Based on: 10-K (filing date: 2021-06-21), 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22).

1 2021 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 13,746 ÷ 40,479 = 33.96%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Oracle Corp.’s net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Return on Equity (ROE)

Oracle Corp., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Net income 13,746  10,135  11,083  3,825  9,335  8,901 
Total Oracle Corporation stockholders’ equity 5,238  12,074  21,785  45,726  53,860  47,289 
Profitability Ratio
ROE1 262.43% 83.94% 50.87% 8.37% 17.33% 18.82%
Benchmarks
ROE, Competitors2
Accenture PLC 30.25% 30.05% 33.17% 39.17% 38.50% 54.42%
Adobe Inc. 39.66% 28.03% 27.67% 20.02% 15.74%
Autodesk Inc. 125.14% -79.35% -20.41%
Automatic Data Processing Inc. 45.83% 42.88% 42.46% 46.85% 43.59% 33.30%
Fidelity National Information Services Inc. 0.32% 0.60% 8.28% 12.17% 5.83%
Fiserv Inc. 2.96% 2.71% 51.77% 45.62% 36.60%
International Business Machines Corp. 27.14% 45.25% 51.96% 32.70% 65.07%
Intuit Inc. 20.89% 35.76% 41.53% 51.44% 71.71% 84.32%
Mastercard Inc. 100.31% 137.76% 108.60% 71.60% 71.76%
Microsoft Corp. 43.15% 37.43% 38.35% 20.03% 29.29% 23.33%
PayPal Holdings Inc. 20.99% 14.56% 13.37% 11.22% 9.52%
salesforce.com inc. 9.81% 0.37% 7.11% 1.36% 2.40% -0.95%
ServiceNow Inc. 4.18% 29.45% -2.40% -25.53% -116.76%
Visa Inc. 30.01% 34.83% 30.29% 20.45% 18.20%
ROE, Sector
Software & Services 26.20% 28.78% 23.51% 24.08% 24.90%
ROE, Industry
Information Technology 32.11% 33.34% 31.07% 23.72% 23.14%

Based on: 10-K (filing date: 2021-06-21), 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22).

1 2021 Calculation
ROE = 100 × Net income ÷ Total Oracle Corporation stockholders’ equity
= 100 × 13,746 ÷ 5,238 = 262.43%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Oracle Corp.’s ROE improved from 2019 to 2020 and from 2020 to 2021.

Return on Assets (ROA)

Oracle Corp., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Net income 13,746  10,135  11,083  3,825  9,335  8,901 
Total assets 131,107  115,438  108,709  137,264  134,991  112,180 
Profitability Ratio
ROA1 10.48% 8.78% 10.20% 2.79% 6.92% 7.93%
Benchmarks
ROA, Competitors2
Accenture PLC 13.68% 13.78% 16.04% 16.61% 15.18% 19.95%
Adobe Inc. 21.66% 14.22% 13.80% 11.65% 9.20%
Autodesk Inc. 16.60% 3.47% -1.71% -13.78% -12.13% -5.99%
Automatic Data Processing Inc. 5.33% 6.30% 5.47% 4.37% 4.66% 3.42%
Fidelity National Information Services Inc. 0.19% 0.36% 3.56% 5.38% 2.18%
Fiserv Inc. 1.28% 1.15% 10.54% 12.11% 9.55%
International Business Machines Corp. 3.58% 6.20% 7.07% 4.59% 10.11%
Intuit Inc. 13.29% 16.70% 24.78% 23.39% 23.87% 23.04%
Mastercard Inc. 19.09% 27.77% 23.57% 18.36% 21.73%
Microsoft Corp. 18.36% 14.70% 13.69% 6.40% 8.80% 8.67%
PayPal Holdings Inc. 5.97% 4.79% 4.75% 4.40% 4.23%
salesforce.com inc. 6.14% 0.23% 3.61% 0.61% 1.02% -0.37%
ServiceNow Inc. 1.36% 10.41% -0.69% -4.39% -22.22%
Visa Inc. 13.43% 16.65% 14.88% 9.85% 9.36%
ROA, Sector
Software & Services 8.90% 9.66% 7.24% 7.60% 8.49%
ROA, Industry
Information Technology 11.21% 11.86% 10.97% 9.02% 9.47%

Based on: 10-K (filing date: 2021-06-21), 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22).

1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 13,746 ÷ 131,107 = 10.48%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Oracle Corp.’s ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.