Oracle Corporation (ORCL)
Pretax margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 14,160,000 | 11,741,000 | 9,126,000 | 7,649,000 | 12,999,000 |
| Revenue | US$ in thousands | 57,399,000 | 52,961,000 | 49,954,000 | 42,440,000 | 40,479,000 |
| Pretax margin | 24.67% | 22.17% | 18.27% | 18.02% | 32.11% |
May 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $14,160,000K ÷ $57,399,000K
= 24.67%
The analysis of Oracle Corporation's pretax margin over the specified period reveals notable fluctuations and trends. As of May 31, 2021, the pretax margin stood at 32.11%, indicating a strong profitability position relative to revenue before taxes. However, by May 31, 2022, the pretax margin experienced a significant decline to 18.02%, nearly halving from the previous year. This sharp decrease could suggest increased operational costs, higher expenses, or lower margins on sales during that period, impacting overall profitability at the pretax level.
Subsequently, the pretax margin showed a slight improvement to 18.27% by May 31, 2023, indicating a marginal recovery from the previous year's low point. Despite this uptick, profitability before taxes remained considerably below the peak observed in 2021. Moving forward, the pretax margin demonstrates a positive trajectory, reaching 22.17% by May 31, 2024. This increase suggests an improvement in Oracle's efficiency or a favorable shift in operational costs and pricing strategies, leading to better profit margins relative to pre-tax earnings.
Further, the data reflects continued improvement, with the pretax margin rising to 24.67% by May 31, 2025. This upward trend indicates ongoing enhancements in the company's operational performance or cost management, resulting in increased profitability margins before tax. Overall, while the pretax margin experienced a substantial decline after 2021, recent years have shown signs of recovery and improvement, highlighting a period of adjustment and potential stabilization in Oracle's profitability profile.
Peer comparison
May 31, 2025