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.