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.
Peer comparison
May 31, 2025
See also:
Oracle Corporation Net Fixed Asset Turnover (Quarterly Data)