Oracle Corporation (ORCL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 77.82% | 69.79% | 69.92% | 69.93% | 70.01% | 71.53% | 71.88% | 72.26% | 72.85% | 74.50% | 76.11% | 77.78% | 79.09% | 79.43% | 79.95% | 80.22% | 80.59% | 80.59% | 80.33% | 79.95% |
| Operating profit margin | 30.80% | 31.28% | 30.66% | 30.18% | 29.63% | 28.77% | 28.50% | 28.11% | 27.37% | 28.94% | 31.19% | 34.08% | 37.07% | 37.93% | 38.56% | 38.53% | 38.67% | 38.76% | 38.14% | 37.16% |
| Pretax margin | 24.67% | 24.82% | 24.14% | 23.40% | 22.28% | 21.08% | 20.19% | 19.32% | 18.27% | 20.11% | 22.28% | 15.00% | 18.02% | 19.56% | 20.81% | 32.04% | 32.11% | 31.59% | 31.32% | 31.05% |
| Net profit margin | 21.68% | 21.80% | 21.16% | 20.40% | 19.77% | 20.27% | 19.64% | 18.40% | 17.02% | 17.46% | 19.09% | 13.16% | 15.83% | 18.08% | 24.79% | 34.17% | 33.96% | 32.32% | 26.34% | 26.13% |
The analysis of Oracle Corporation’s profitability ratios over the specified periods reveals a nuanced picture of its financial performance.
Gross Profit Margin: The gross profit margin has demonstrated a declining trend from August 2020 through May 2025, declining from approximately 79.95% to 69.79%. Notably, the margin experienced some stabilization around the 71-72% range during late 2023 and early 2024 before a slight upward movement in early 2025, culminating at 77.82% in May 2025. This overall downward trend suggests increasing costs of goods sold or other operational factors reducing gross profitability over time.
Operating Profit Margin: The operating profit margin has shown a more consistent decline from August 2020 (37.16%) to February 2023 (approximately 28.94%), with a brief fluctuation around 30% in late 2024. After reaching a low near 27% in May 2023, it slightly recovered to approximately 30.80% by May 2025. This indicates that while operating efficiency has dipped, recent periods have seen some improvement, potentially due to cost management or revenue growth.
Pre-Tax Margin: The pre-tax margin reflects significant variability, particularly a notable drop in November 2021 to approximately 20.81% from previous levels above 31%. Post this decline, the margin gradually increased from around 18% in 2022 to approximately 24.82% in May 2025. The fluctuations may be influenced by non-operational factors such as tax policies or other one-time items impacting pre-tax earnings.
Net Profit Margin: The net profit margin has exhibited considerable volatility, with a high of approximately 34.17% in August 2021 and a low of about 13.16% in August 2022. Over the longer term, margins have tended to stabilize and slightly improve, reaching around 21.68% in May 2025. The initial sharp decline followed by partial recovery indicates periods of increased profitability interspersed with challenging intervals, possibly due to fluctuating operational costs, tax expenses, or extraordinary items.
Overall Summary: Oracle’s profitability ratios over the examined periods reveal a downward trend in gross and operating margins, signaling rising costs or margin compression in core operations. Despite this, trends in pre-tax and net profit margins demonstrate periods of recovery, reflecting potential improvements in operational efficiency or favorable non-operational factors. The recent data suggests a modest stabilization and slight improvement in profitability metrics as of early 2025, but overall margins remain below historical peaks observed in 2020 and 2021.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 7.39% | 7.54% | 7.83% | 7.61% | 7.43% | 7.76% | 7.55% | 6.86% | 6.33% | 6.36% | 6.85% | 4.46% | 6.15% | 6.96% | 9.60% | 11.35% | 10.49% | 10.86% | 9.44% | 9.03% |
| Return on total capital | 61.08% | 104.74% | 122.70% | 149.88% | 177.40% | 263.81% | 324.55% | 478.74% | 822.49% | — | — | — | — | — | — | — | 263.37% | 155.28% | 169.65% | 141.25% |
| Return on equity (ROE) | 59.34% | 72.68% | 84.57% | 101.49% | 120.27% | 189.28% | 231.57% | 330.02% | 546.53% | — | — | — | — | — | — | — | 230.96% | 133.13% | 120.47% | 101.07% |
The profitability ratios of Oracle Corporation, as reflected over the indicated periods, demonstrate a nuanced picture of the company's operational efficiency and financial performance.
Operating Return on Assets (Operating ROA):
This ratio exhibits a relatively stable trend with minor fluctuations. Starting at 12.83% on August 31, 2020, it shows some upward movements, peaking at 14.93% in November 2021. Following this peak, a declining trend is observed, reaching a low of 10.17% in May 2023. Subsequently, there is a modest recovery, with the ratio increasing to 11.34% as of November 2024, and stabilizing around 11.13% to 11.26% in the subsequent periods. This indicates a generally consistent ability to generate operating income relative to assets, though with some decline in recent years, possibly reflecting market or operational challenges.
Return on Assets (ROA):
This measure presents a downward trend from a high of 11.35% in August 2021 to about 4.46% in August 2022, then stabilizes around 6-8% in the subsequent periods. The recent data suggests a contraction in the efficiency of asset utilization in generating net income, but with some recovery evident after the 2022 lows, indicating partial stabilization.
Return on Total Capital:
This ratio demonstrates significant variability, with notable peaks such as 263.37% in May 2021. Post-2021, the ratio becomes less consistent, with a remarkable spike of 822.49% in May 2023, followed by declines but remaining relatively high compared to earlier periods. The recent figures show a downward trend, declining to around 61.08% by May 2025. These fluctuations suggest periods of highly leveraged return on capital, potentially driven by strategic financial structuring or extraordinary gains.
Return on Equity (ROE):
ROE ratios are notably high throughout the observed periods. Starting at 101.07% in August 2020, the ratio experiences a significant increase, peaking at 546.53% in May 2023. Other high points include 330.02% in August 2023 and 231.57% in November 2023. After these peaks, a declining trend emerges, with the latest figures around 59.34% in May 2025. The elevated levels across periods reflect substantial leverage and efficient profit generation relative to shareholders’ equity, although the downward adjustments in recent periods suggest normalization or dilution effects.
Overall Observation:
Oracle’s profitability ratios reveal a pattern characterized by high leverage and efficiency in generating returns during certain periods, especially around 2023, with substantial fluctuations indicating strategic financial maneuvers or market variations. The recent trend shows a moderation in these ratios, possibly reflecting market normalization, increased competition, or operational adjustments. The stability and level of these ratios suggest effective profit generation, albeit with recent signs of diminishing margins and leverage, which warrants ongoing monitoring to assess sustained profitability.