Oracle Corporation (ORCL)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 17,678,000 | 17,448,000 | 16,840,000 | 16,242,000 | 15,692,000 | 15,109,000 | 14,714,000 | 14,324,000 | 13,672,000 | 13,879,000 | 14,372,000 | 15,051,000 | 15,732,000 | 15,866,000 | 15,965,000 | 15,734,000 | 15,652,000 | 15,384,000 | 15,029,000 | 14,573,000 |
| Total assets | US$ in thousands | 168,361,000 | 161,378,000 | 148,483,000 | 144,214,000 | 140,976,000 | 137,082,000 | 134,324,000 | 136,662,000 | 134,384,000 | 131,620,000 | 128,469,000 | 130,309,000 | 109,297,000 | 108,644,000 | 106,897,000 | 122,924,000 | 131,107,000 | 118,109,000 | 110,014,000 | 113,546,000 |
| Operating ROA | 10.50% | 10.81% | 11.34% | 11.26% | 11.13% | 11.02% | 10.95% | 10.48% | 10.17% | 10.54% | 11.19% | 11.55% | 14.39% | 14.60% | 14.93% | 12.80% | 11.94% | 13.03% | 13.66% | 12.83% |
May 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $17,678,000K ÷ $168,361,000K
= 10.50%
The analysis of Oracle Corporation’s operating return on assets (operating ROA) over the specified period reveals several trends and noteworthy details. Initially, the ROA demonstrated some fluctuations within the period from August 2020 through May 2021, with values oscillating between approximately 11.94% and 13.66%. Notably, there was a peak at November 2020 (13.66%) and again at November 2021 (14.93%), indicating periods of relative efficiency in generating operating income from assets.
From June 2021 onward, the operating ROA continued to exhibit variability. After reaching a high of 14.93% in late 2021, the metric experienced a gradual decline, with notable dips below 12% in mid-2022. For instance, by August 2022, the ROA had decreased to approximately 11.55%, and it further declined to around 10.54% by February 2023. This downward trend suggests a period of reduced efficiency in asset utilization or operating performance during these years.
However, starting in late 2023, the operating ROA experienced a modest recovery. From a low point of approximately 10.17% in May 2023, it increased to 10.48% in August 2023 and further to about 10.95% in November 2023. Moving into early 2024, there is evidence of a slight upward trend, with the ROA reaching approximately 11.02% in February 2024 and continuing to rise through May and August 2024 to approximately 11.13% and 11.26%, respectively. The upward trajectory persists into the end of 2024, culminating in an ROA of 11.34% as of November 2024.
Looking ahead into 2025, the data indicate a slight decrease, with the figure at approximately 10.81% in February and 10.50% in May. Nonetheless, the overall trend from late 2023 onward suggests an incremental improvement in operating efficiency, although the ROA remains within a relatively narrow range, reflecting relatively stable asset productivity with some fluctuations.
In summary, Oracle's operating ROA experienced periods of decline and recovery over the observed timeframe. The data imply that the company's operational efficiency in converting assets into earnings experienced challenges around 2022 but began to improve toward the end of 2023 and into 2024. The fluctuations may correlate to changes in operating performance, investment strategies, or external market factors impacting asset utilization. Overall, the recent trend indicates a stabilization and slight improvement in operating return efficiency.
Peer comparison
May 31, 2025