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.