Oracle Corporation (ORCL)

Return on assets (ROA)

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Net income	US$ in thousands	12,443,000	10,467,000	8,503,000	6,717,000	13,746,000
Total assets	US$ in thousands	168,361,000	140,976,000	134,384,000	109,297,000	131,107,000
ROA		7.39%	7.42%	6.33%	6.15%	10.48%

May 31, 2025 calculation

ROA = Net income ÷ Total assets
= $12,443,000K ÷ $168,361,000K
= 7.39%

The analysis of Oracle Corporation's return on assets (ROA) over the specified period reveals notable fluctuations and trends. As of May 31, 2021, the ROA stood at 10.48%, indicating a relatively strong ability to generate profit from the company's assets during that fiscal year. This figure declined sharply in the subsequent year, reaching 6.15% on May 31, 2022, which suggests a significant reduction in asset efficiency or profitability relative to assets employed.

Following this decline, the ROA showed a marginal improvement in May 2023, rising slightly to 6.33%. This modest increase indicates a slight recovery in the company's efficiency in utilizing its assets to generate earnings. The upward trend continued into May 2024, with the ROA reaching 7.42%, signifying a notable improvement over the previous year and suggesting a period of enhanced operational performance or a strategic change that positively impacted asset productivity.

By May 2025, the ROA was marginally adjusted downward to 7.39%. This slight decrease may reflect stabilization at a level somewhat above the 2023 figures but below the peak observed in 2024. Overall, the ROA trend from 2021 to 2025 depicts an initial decline followed by a recovery phase, indicating variability in asset utilization efficiency and potentially reflecting ongoing strategic adjustments, market conditions, or operational factors influencing profitability metrics.

In summary, Oracle's ROA experienced a significant dip post-2021, with a subsequent recovery that plateaued slightly in 2025, highlighting periods of challenge and improvement in the company's ability to convert its assets into earnings over this period.