Oracle Corporation (ORCL)
Return on assets (ROA)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 10,467,000 | 8,503,000 | 6,717,000 | 13,746,000 | 10,135,000 |
| Total assets | US$ in thousands | 140,976,000 | 134,384,000 | 109,297,000 | 131,107,000 | 115,438,000 |
| ROA | 7.42% | 6.33% | 6.15% | 10.48% | 8.78% |
May 31, 2024 calculation
ROA = Net income ÷ Total assets
= $10,467,000K ÷ $140,976,000K
= 7.42%
Oracle Corporation's return on assets (ROA) has shown fluctuations over the past five years. In 2024, the ROA stood at 7.42%, representing an increase from the previous year's 6.33%. This improvement indicates that Oracle generated $0.0742 in profit for every dollar of assets it holds during the year.
Compared to 2022 and 2023 where the ROA was 6.15% and 6.33% respectively, the recent ROA of 7.42% suggests that the company has been more efficient in generating profit from its assets in the most recent fiscal year.
However, when considering the trend over the past five years, the ROA has been somewhat volatile. Despite the recent increase in ROA, it is lower than the 10.48% recorded in 2021, indicating a potential efficiency decline in generating profit from assets since then.
Overall, Oracle Corporation's ROA performance should be further monitored to assess its ability to effectively utilize its assets to generate profits in the future.
Peer comparison
May 31, 2024