Oracle Corporation (ORCL)
Pretax margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 11,741,000 | 9,126,000 | 7,649,000 | 12,999,000 | 12,063,000 |
| Revenue | US$ in thousands | 52,961,000 | 49,954,000 | 42,440,000 | 40,479,000 | 36,904,000 |
| Pretax margin | 22.17% | 18.27% | 18.02% | 32.11% | 32.69% |
May 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $11,741,000K ÷ $52,961,000K
= 22.17%
To analyze Oracle Corporation's pretax margin over the past five years, we calculate the pretax margin by dividing the company's pre-tax income by its total revenues and expressing the result as a percentage.
1. In May 31, 2024, Oracle Corporation had a pretax margin of 22.17%. This indicates that for every dollar of revenue generated, the company retained approximately $0.2217 before accounting for taxes.
2. In the previous year, May 31, 2023, the pretax margin was slightly lower at 18.27%. This suggests a decrease in profitability compared to the current year.
3. The pretax margin for May 31, 2022 stood at 18.02%, showing stability in profitability compared to the previous year.
4. In May 31, 2021, the pretax margin experienced a significant increase to 32.11%, indicating a notable improvement in profitability compared to the two preceding years.
5. The highest pretax margin over the five-year period was in May 31, 2020, at 32.69%, demonstrating strong profitability for Oracle Corporation that year.
Overall, Oracle Corporation's pretax margin has fluctuated over the past five years, with notable improvements in certain years. It is essential for investors and stakeholders to closely monitor this metric to assess the company's operational efficiency and profitability.
Peer comparison
May 31, 2024