Oracle Corporation (ORCL)

Operating return on assets (Operating ROA)

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Operating income	US$ in thousands	17,678,000	15,353,000	13,670,000	15,836,000	15,653,000
Total assets	US$ in thousands	168,361,000	140,976,000	134,384,000	109,297,000	131,107,000
Operating ROA		10.50%	10.89%	10.17%	14.49%	11.94%

May 31, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $17,678,000K ÷ $168,361,000K
= 10.50%

The analysis of Oracle Corporation’s operating return on assets (ROA) over the period from May 31, 2021, to May 31, 2025, indicates fluctuating efficiency in generating operating income relative to its total assets.

During the fiscal year ending May 31, 2021, the operating ROA was 11.94%, signifying that the company was able to generate approximately 11.94 cents of operating income for each dollar of assets employed. This ratio increased noticeably in the subsequent year, reaching 14.49% as of May 31, 2022, reflecting an improvement in operational efficiency and possibly better utilization of assets.

However, in the following two years, there was a decline in the operating ROA. As of May 31, 2023, the ratio dropped to 10.17%, indicating a reduction in the company’s ability to generate operating income from its assets. The slight recovery occurred in the year ending May 31, 2024, when the ratio increased to 10.89%. By the fiscal year ending May 31, 2025, the operating ROA was recorded at 10.50%, reflecting a modest decrease from the previous year but remaining above the lowest level observed in 2023.

Overall, the trend suggests that Oracle experienced a peak in operating efficiency during 2022, followed by a decline and partial recovery in the subsequent years. These fluctuations could be attributable to changes in operational performance, asset base management, or external factors impacting profitability. Despite the volatility, the ratios remain within a range that indicates a generally consistent ability to generate operating income from the company's assets over the analyzed period.