Analysis of Reportable Segments
Oracle Corp. operates in 3 segments: Cloud and license business; Hardware business; and Services business.
Segment Profit Margin
Oracle Corp., profit margin by reportable segment
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | |
|---|---|---|---|---|---|---|
| Cloud and license business | 63.59% | 66.80% | 67.94% | 66.29% | 66.25% | 67.17% |
| Hardware business | 59.01% | 59.00% | 60.32% | 55.27% | 50.13% | 45.25% |
| Services business | 19.74% | 20.78% | 20.79% | 14.49% | 16.57% | 19.30% |
Based on: 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), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Cloud and license business | Cloud and license business segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Hardware business | Hardware business segment profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. | |
| Services business | Services business segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Cloud and license business
Oracle Corp.; Cloud and license business; segment profit margin calculation
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Margin | 26,126) | 24,083) | 23,169) | 21,561) | 21,587) | 21,825) |
| Revenues | 41,086) | 36,052) | 34,101) | 32,523) | 32,582) | 32,491) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 63.59% | 66.80% | 67.94% | 66.29% | 66.25% | 67.17% |
Based on: 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), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Segment profit margin = 100 × Margin ÷ Revenues
= 100 × 26,126 ÷ 41,086 = 63.59%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Cloud and license business | Cloud and license business segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Hardware business
Oracle Corp.; Hardware business; segment profit margin calculation
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Margin | 1,932) | 1,878) | 2,026) | 1,903) | 1,857) | 1,807) |
| Revenues | 3,274) | 3,183) | 3,359) | 3,443) | 3,704) | 3,993) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 59.01% | 59.00% | 60.32% | 55.27% | 50.13% | 45.25% |
Based on: 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), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Segment profit margin = 100 × Margin ÷ Revenues
= 100 × 1,932 ÷ 3,274 = 59.01%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Hardware business | Hardware business segment profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Segment Profit Margin: Services business
Oracle Corp.; Services business; segment profit margin calculation
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Margin | 1,104) | 666) | 628) | 450) | 537) | 655) |
| Revenues | 5,594) | 3,205) | 3,021) | 3,106) | 3,240) | 3,394) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 19.74% | 20.78% | 20.79% | 14.49% | 16.57% | 19.30% |
Based on: 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), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Segment profit margin = 100 × Margin ÷ Revenues
= 100 × 1,104 ÷ 5,594 = 19.74%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Services business | Services business segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Revenues
Oracle Corp., revenues by reportable segment
US$ in millions
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | |
|---|---|---|---|---|---|---|
| Cloud and license business | 41,086) | 36,052) | 34,101) | 32,523) | 32,582) | 32,491) |
| Hardware business | 3,274) | 3,183) | 3,359) | 3,443) | 3,704) | 3,993) |
| Services business | 5,594) | 3,205) | 3,021) | 3,106) | 3,240) | 3,394) |
| Total | 49,954) | 42,440) | 40,481) | 39,072) | 39,526) | 39,878) |
Based on: 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), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
Margin
Oracle Corp., margin by reportable segment
US$ in millions
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | |
|---|---|---|---|---|---|---|
| Cloud and license business | 26,126) | 24,083) | 23,169) | 21,561) | 21,587) | 21,825) |
| Hardware business | 1,932) | 1,878) | 2,026) | 1,903) | 1,857) | 1,807) |
| Services business | 1,104) | 666) | 628) | 450) | 537) | 655) |
| Total | 29,162) | 26,627) | 25,823) | 23,914) | 23,981) | 24,287) |
Based on: 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), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).