Oracle Corporation (ORCL)

Fixed asset turnover

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Revenue	US$ in thousands	52,961,000	49,954,000	42,440,000	40,479,000	36,904,000
Property, plant and equipment	US$ in thousands	21,536,000	17,069,000	9,716,000	7,049,000	6,244,000
Fixed asset turnover		2.46	2.93	4.37	5.74	5.91

May 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $52,961,000K ÷ $21,536,000K
= 2.46

Oracle Corporation's fixed asset turnover has shown a declining trend over the past five years, from 5.91 in 2020 to 2.46 in 2024. This indicates that the company is generating less revenue relative to its investment in fixed assets. A lower fixed asset turnover ratio could suggest inefficiencies in asset utilization or declining sales relative to the investment in fixed assets. It is important for Oracle to closely monitor and address any issues impacting their fixed asset turnover to ensure optimal utilization of assets and maximize profitability.