Oracle Corporation (ORCL)

Fixed asset turnover

		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	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Revenue (ttm)	US$ in thousands	52,960,000	52,432,000	51,522,000	50,865,000	49,953,000	75,826,000	74,208,000	72,479,000	70,880,000	68,919,000	68,584,000	68,133,000	67,848,000	66,437,000	66,252,000	66,195,000	66,165,000	66,603,000	66,398,000	66,292,000
Property, plant and equipment	US$ in thousands	21,536,000	19,117,000	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	6,244,000	6,248,000	6,270,000	6,264,000
Fixed asset turnover		2.46	2.74	2.86	2.88	2.93	4.64	5.17	5.90	7.30	8.01	8.54	8.95	9.63	9.75	10.00	10.34	10.60	10.66	10.59	10.58

May 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $52,960,000K ÷ $21,536,000K
= 2.46

Oracle Corporation's fixed asset turnover has displayed fluctuations over the periods indicated in the table. The fixed asset turnover ratio measures the efficiency of a company in generating revenue from its investments in property, plant, and equipment.

The trend in fixed asset turnover for Oracle Corporation shows a generally increasing pattern from the period ending in August 2019 to the period ending in May 2023, indicating improved utilization of its fixed assets to generate revenue.

From the period ending in May 2023 to February 2024, the fixed asset turnover ratio saw a decline. However, it rebounded in the subsequent period ending in May 2024, reaching a ratio of 2.46. This suggests that Oracle Corporation has been able to generate $2.46 in revenue for every dollar invested in fixed assets as of May 31, 2024.

Overall, the trend in Oracle Corporation's fixed asset turnover indicates a relatively efficient utilization of fixed assets to generate revenue, with some fluctuations observed in the recent periods. Continued monitoring of this ratio will be important to assess the company's ongoing performance in managing its fixed asset investments.