Oracle Corp. (NYSE:ORCL)

Gross Profit Margin

The gross profit margin exhibits a decreasing trend over the six-year period. Starting at 79.68% in 2020, it peaked slightly at 80.59% in 2021 but then declined steadily to 70.51% by 2025. This indicates a gradual reduction in the proportion of revenue retained after accounting for the cost of goods sold.

Operating Profit Margin

The operating profit margin shows initial growth, rising from 35.57% in 2020 to a high of 37.58% in 2021. However, it experienced a significant drop to 25.74% in 2022, followed by a gradual recovery to 30.8% by 2025. Despite the recovery, the margin remains below the earlier peak, suggesting fluctuating operational efficiency or cost management issues.

Net Profit Margin

The net profit margin follows a similar pattern to the operating margin but with more pronounced volatility. It increased from 25.94% in 2020 to 33.96% in 2021 but sharply declined to 15.83% in 2022. Subsequently, it gradually recovered to 21.68% in 2025. This pattern may reflect variations in non-operating income, taxes, or extraordinary items impacting overall profitability.

Return on Equity (ROE)

Return on equity exhibits remarkable variability with exceptionally high values in certain years. It surged from 83.94% in 2020 to an extraordinary 262.43% in 2021, followed by missing data in 2022. An unprecedented spike to 792.45% occurred in 2023, then a sharp decline to 120.26% in 2024 and further to 60.84% in 2025. These fluctuations suggest significant changes in equity base, net income, or potential accounting anomalies affecting shareholder returns.

Return on Assets (ROA)

The return on assets shows moderate fluctuations, with a rise from 8.78% in 2020 to a peak of 10.48% in 2021, followed by a decline to 6.15% in 2022. Since then, there is a moderate upward trend reaching 7.39% in 2025. This suggests variations in asset utilization efficiency, though overall asset profitability remains relatively stable compared to other metrics.

Revenues

Revenues demonstrate a consistent upward trend over the analyzed periods, increasing from 39,068 million USD in 2020 to 57,399 million USD in 2025. This represents a substantial growth, reflecting an overall positive sales performance.

Gross Profit

Gross profit has also shown an increasing pattern, rising from 31,130 million USD in 2020 to 40,472 million USD in 2025. While the absolute value of gross profit is increasing, the pace of growth is somewhat moderate relative to the revenue increase over the same period.

Gross Profit Margin

The gross profit margin exhibits a declining trend, starting at 79.68% in 2020, peaking slightly at 80.59% in 2021, and then progressively decreasing each year to reach 70.51% in 2025. This indicates that although revenues and gross profit are growing, the company's cost of goods sold is increasing at a faster rate relative to revenues, leading to diminishing profitability at the gross profit level.

Overall Insights

The data portrays a scenario where revenue growth is robust and steady, supporting increasing gross profits in absolute terms. However, the decline in gross profit margin suggests rising costs or pricing pressures that are negatively impacting profitability efficiency. The company may need to investigate cost management or pricing strategies to address the margin compression observed in recent years.

Operating Income

The operating income demonstrates a fluctuating yet overall increasing trend over the analyzed periods. Beginning at 13,896 million US dollars in 2020, the figure rose to 15,213 million in 2021 before experiencing a notable decline to 10,926 million in 2022. Following this dip, operating income recovered to 13,093 million in 2023 and continued to increase significantly through 2024 and 2025, reaching 15,353 million and 17,678 million respectively. The data suggests a cyclical pattern with a strong rebound and growth phase after 2022.

Revenues

Revenue figures exhibit a consistent and robust growth trajectory throughout the entire period. Starting at 39,068 million US dollars in 2020, revenues steadily increased each year, reaching 40,479 million in 2021, 42,440 million in 2022, and then showing a more accelerated rise from 49,954 million in 2023 to 52,961 million in 2024, culminating at 57,399 million in 2025. This continuous upward trend indicates expanding business operations or market penetration over time.

Operating Profit Margin

The operating profit margin shows variability but generally improves after an initial decline. The margin was 35.57% in 2020, increasing to a peak of 37.58% in 2021. However, a sharp reduction occurred in 2022, where the margin dropped to 25.74%. Despite this decrease, the margin slightly recovered to 26.21% in 2023 and continued to rise to 28.99% in 2024 and 30.8% in 2025. This pattern reflects a period of reduced profitability efficiency possibly linked to the income dip in 2022, followed by gradual operational improvements enhancing profitability ratios.

The financial data reveals several notable trends over the observed periods.

Net Income

Net income demonstrates a fluctuating pattern with an initial increase from 10,135 million USD in 2020 to a peak of 13,746 million USD in 2021. This is followed by a significant decrease to 6,717 million USD in 2022. Subsequently, net income recovers steadily, reaching 12,443 million USD by 2025.

Revenues

Revenues show a consistent upward trend throughout the entire period. Starting at 39,068 million USD in 2020, revenues increase steadily each year, reaching 57,399 million USD in 2025. This indicates sustained growth in the top line despite fluctuations in profitability.

Net Profit Margin

The net profit margin reflects a variable trend, beginning at 25.94% in 2020 and rising sharply to 33.96% in 2021. However, it drops nearly by half to 15.83% in 2022, aligning with the decline in net income noted previously. Afterwards, the margin improves gradually, reaching 21.68% in 2025 but remaining below the 2021 peak.

Overall, the data indicates initial strong profitability which was challenged in 2022, possibly due to increased costs or external factors affecting net income disproportionately to revenues. However, both net income and profit margin show recovery in subsequent years, supported by steady revenue growth. This suggests improving operational efficiency or market conditions favoring profitability restoration.

Net income

The net income demonstrates a fluctuating trend over the reported periods. It increased significantly from 10,135 million USD in May 2020 to a peak of 13,746 million USD in May 2021. However, in the following year, net income dropped sharply to 6,717 million USD, reflecting a substantial decline. Subsequently, net income rebounded, rising to 8,503 million USD in May 2023, and continued to increase to 10,467 million USD in May 2024, reaching 12,443 million USD in May 2025. Overall, despite volatility, the recent trend indicates a recovery and growth phase.

Total stockholders’ equity (deficit)

The total stockholders' equity shows high volatility and notable fluctuations, including negative values. It started at 12,074 million USD in May 2020 but then declined drastically to 5,238 million USD in May 2021. The following year, the equity turned negative, reaching -6,220 million USD by May 2022, signaling a deficit. Thereafter, it recovered to a positive 1,073 million USD in May 2023 and continued a strong upward trajectory, growing to 8,704 million USD in May 2024 and further to 20,451 million USD in May 2025. This indicates improved equity position after a period of financial stress.

Return on Equity (ROE, %)

The ROE figure exhibits extreme volatility and unusually high values in some years, reflecting the significant fluctuations in equity levels. It was very high at 83.94% in May 2020 and then surged to an exceptionally elevated 262.43% in May 2021. Due to the negative or near-zero equity in the following periods, ROE data is missing for May 2022 but spikes dramatically to 792.45% in May 2023. Subsequently, ROE decreases notably to 120.26% in May 2024 and further to 60.84% in May 2025. The extreme values are largely attributable to the low or negative equity base during these periods, which magnifies the ROE ratio. The recent declining trend in ROE suggests a normalization as equity recovers.

Net Income Trend

Net income experienced significant fluctuations over the assessed periods. It increased noticeably from $10,135 million in 2020 to a peak of $13,746 million in 2021. This was followed by a marked decline in 2022, dropping to $6,717 million. Subsequently, net income showed a recovery trajectory, rising steadily to $8,503 million in 2023, $10,467 million in 2024, and reaching $12,443 million in 2025, indicating improvement and approaching levels close to those in the early part of the period.

Total Assets

The total asset base displayed an overall upward trend despite some volatility. Starting at $115,438 million in 2020, total assets grew to $131,107 million in 2021 but then decreased to $109,297 million in 2022. From 2023 onwards, there was a consistent increase, with assets reaching $134,384 million in 2023, $140,976 million in 2024, and a significant jump to $168,361 million in 2025. This suggests a strong asset growth phase in the latter years.

Return on Assets (ROA)

ROA mirrored the fluctuations seen in net income with corresponding declines and recoveries. The ratio increased initially from 8.78% in 2020 to 10.48% in 2021, indicating improved profitability relative to assets. However, it dropped to 6.15% in 2022 and only modestly improved to 6.33% in 2023. Further enhancement was seen in 2024 with ROA rising to 7.42%, maintaining a similar level at 7.39% in 2025. Despite recovery, the ROA in later years did not reach the peak levels observed in 2021, implying slightly reduced efficiency in asset utilization compared to the earlier peak.

Overall Assessment

The data indicates that the company underwent a challenging phase around 2022 with declines in both net income and total assets, accompanied by a drop in ROA. Following this period, there has been a steady recovery and growth in key financial metrics leading up to 2025. The increase in total assets in the most recent year suggests potential investments or asset acquisitions, supporting future operational capacity. However, the ROA, while improved from the low, remains below its historical high, signaling room for enhanced operational efficiency to translate asset growth into proportional profitability gains.