Oracle Corporation (ORCL)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	20,969,000	8,704,000	1,556,000	-5,768,000	5,952,000
ROE		59.34%	120.26%	546.47%	—	230.95%

May 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $12,443,000K ÷ $20,969,000K
= 59.34%

The analysis of Oracle Corporation's return on equity (ROE) over the specified period reveals significant fluctuations. As of May 31, 2021, the ROE stood at approximately 230.95%, indicating a highly efficient utilization of shareholders’ equity to generate profits. Data for May 31, 2022, is unavailable or not reported, which limits the ability to assess year-over-year progress during that interval.

By May 31, 2023, the ROE markedly increased to approximately 546.47%, representing a substantial improvement in the company's ability to convert equity into earnings. Such a high ROE could imply operational efficiencies, favorable profit margins, or strategic financial leverage, though it warrants scrutiny for potential risks such as over-leverage or accounting anomalies.

In the subsequent year, May 31, 2024, the ROE experienced a considerable decline to roughly 120.26%. While still indicating robust profitability relative to equity, this decrease suggests a reduction in operational efficiency or profitability margins, or changes in the company's financial structure.

By May 31, 2025, the ROE further declined to approximately 59.34%. Although this figure shows a downward trend from the previous year, it remains substantially above typical benchmarks for many industries, reflecting maintained profitability but also indicating that Oracle’s return efficiency has moderated from its peak in 2023.

Overall, the data illustrates a period of extraordinary ROE performance in 2023, followed by a notable decline in subsequent years, which may reflect changing business conditions, strategic adjustments, or shifts in financial leverage. The absence of data for 2022 limits a complete understanding of the transitional dynamics between 2021 and 2023.