Oracle Corporation (ORCL)

Fixed asset turnover

May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023 Nov 30, 2022 Aug 31, 2022 May 31, 2022 Feb 28, 2022 Nov 30, 2021 Aug 31, 2021 May 31, 2021 Feb 28, 2021 Nov 30, 2020 Aug 31, 2020
Revenue (ttm) US$ in thousands 57,399,000 55,783,000 54,933,000 53,815,000 52,961,000 52,510,000 51,628,000 50,962,000 49,954,000 47,958,000 46,073,000 44,158,000 42,441,000 41,828,000 41,400,000 40,840,000 40,479,000 39,691,000 39,402,000 39,216,000
Property, plant and equipment US$ in thousands 18,009,000 17,644,000 17,069,000 16,345,000 14,351,000 12,280,000 9,716,000 8,609,000 8,029,000 7,610,000 7,049,000 6,816,000 6,627,000 6,401,000
Fixed asset turnover 2.87 2.89 2.93 2.93 3.21 3.60 4.37 4.86 5.16 5.37 5.74 5.82 5.95 6.13

May 31, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $57,399,000K ÷ $—K
= —

The fixed asset turnover ratio for Oracle Corporation demonstrates a consistent downward trend over the observed period from August 31, 2020, through November 30, 2023. Starting at 6.13 in August 2020, the ratio declines steadily to 2.87 by November 2023, indicating a diminishing efficiency in generating revenue from the company's fixed assets over this timeframe.

This reduction suggests several possible interpretations. A declining fixed asset turnover ratio might reflect that the company has accumulated a larger base of fixed assets relative to its revenue, which could be a result of significant capital expenditures or investments in infrastructure that have not yet translated into proportionate revenue growth. Alternatively, it could imply a change in the nature of Oracle's business operations, potentially shifting towards asset-intensive activities or longer-term investments in technology infrastructure.

The consistent decrease over multiple periods points toward a persistent pattern rather than an isolated fluctuation. This trend warrants further analysis to discern whether it stems from operational changes, strategic shifts, or industry-specific factors affecting asset utilization efficiency.

In sum, the decreasing fixed asset turnover ratio indicates that Oracle's ability to leverage its fixed assets to generate revenue has weakened over the observed period, which merits ongoing monitoring and analysis to assess its implications on overall operational performance and financial health.


See also:

Oracle Corporation Net Fixed Asset Turnover (Quarterly Data)