Oracle Corporation (ORCL)

Total asset turnover

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Revenue	US$ in thousands	57,399,000	52,961,000	49,954,000	42,440,000	40,479,000
Total assets	US$ in thousands	168,361,000	140,976,000	134,384,000	109,297,000	131,107,000
Total asset turnover		0.34	0.38	0.37	0.39	0.31

May 31, 2025 calculation

Total asset turnover = Revenue ÷ Total assets
= $57,399,000K ÷ $168,361,000K
= 0.34

The analysis of Oracle Corporation's total asset turnover ratio over the specified period indicates a generally stable yet modest level of asset utilization in generating revenue. At the close of May 31, 2021, the total asset turnover was 0.31, suggesting that for every dollar of assets, approximately 31 cents of revenue were generated. This ratio experienced an upward trend over the subsequent year, increasing to 0.39 by May 31, 2022, reflecting an improvement in asset efficiency.

From May 31, 2022, to May 31, 2023, the ratio slightly decreased to 0.37, indicating a modest decline in asset utilization efficiency, yet still maintaining a relatively higher level compared to 2021. The ratio showed a slight increase again to 0.38 by May 31, 2024, suggesting a marginal improvement or stabilization in asset utilization. However, by May 31, 2025, the ratio declined to 0.34, reverting closer to the levels observed in 2021.

Overall, the ratio fluctuates within a relatively narrow range, suggesting that Oracle's asset efficiency has not experienced significant volatility over these years. The upward trend from 2021 to 2022 implies periods of improved revenue generation relative to assets, while the subsequent slight declines point to periods of stabilization or minor efficiency reductions. The overall trend indicates that Oracle maintains a moderate and relatively stable asset turnover ratio, characteristic of a company with a balanced approach to asset utilization and revenue generation.