Oracle Corporation (ORCL)
Operating return on assets (Operating ROA)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 15,353,000 | 13,093,000 | 10,926,000 | 15,213,000 | 13,896,000 |
| Total assets | US$ in thousands | 140,976,000 | 134,384,000 | 109,297,000 | 131,107,000 | 115,438,000 |
| Operating ROA | 10.89% | 9.74% | 10.00% | 11.60% | 12.04% |
May 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $15,353,000K ÷ $140,976,000K
= 10.89%
Oracle Corporation's operating return on assets (ROA) is a key indicator of the company's efficiency in generating profits from its operational assets. The trend in Oracle's operating ROA over the past five years shows a slight decrease from 12.04% in 2020 to 10.89% in 2024. This indicates a dip in the company's ability to generate earnings from its assets over this period.
The operating ROA of 10.89% in 2024 implies that for every dollar of assets the company holds, it is generating approximately $0.109 in operating income. This metric is essential for evaluating Oracle's operational effectiveness and efficiency in utilizing its assets to generate profits.
Comparing Oracle's operating ROA to previous years, the company has generally maintained a consistent performance, with fluctuations within a relatively narrow range between 9.74% and 12.04%. However, the recent decline in the operating ROA from 2020 to 2024 may raise concerns about Oracle's asset utilization and profitability stemming from its operations.
Further analysis and comparison with industry peers or benchmarks would provide additional insights into Oracle's operational performance and whether the decrease in operating ROA is a result of internal factors or industry trends. It is important for stakeholders to monitor Oracle's operating ROA closely to assess the company's operational efficiency and profitability going forward.
Peer comparison
May 31, 2024