Oracle Corporation (ORCL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 8,704,000 | 1,073,000 | -6,220,000 | 5,238,000 | 12,074,000 |
| ROE | 120.26% | 792.45% | — | 262.43% | 83.94% |
May 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $10,467,000K ÷ $8,704,000K
= 120.26%
Oracle Corporation's return on equity (ROE) has exhibited substantial fluctuations over the past five years. In 2024, the ROE stands at an impressive 120.26%, indicating that the company generated $1.2026 in net income for every $1 of shareholders' equity. This signifies a strong profitability and efficient utilization of equity investment.
The ROE for 2023 was notably higher at 792.45%, reflecting an exceptional performance in generating profits relative to shareholders' investment. Conversely, the data for 2022 is missing, which makes it challenging to assess the trend in ROE for that year.
In 2021, Oracle achieved an ROE of 262.43%, demonstrating a solid return on equity investment. This was a significant increase from the previous year's ROE of 83.94% in 2020, indicating an improved profitability performance.
Overall, the fluctuating ROE values suggest varying levels of profitability and efficiency in utilizing shareholders' equity over the past five years, with notable peaks and dips in performance. It is essential for investors and stakeholders to monitor these fluctuations carefully to assess the company's financial health and performance.
Peer comparison
May 31, 2024