Oracle Corporation (ORCL)
Return on total capital
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 15,441,000 | 12,796,000 | 15,836,000 | 15,653,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 20,969,000 | 8,704,000 | 1,556,000 | -5,768,000 | 5,952,000 |
| Return on total capital | 0.00% | 177.40% | 822.37% | — | 262.99% |
May 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $20,969,000K)
= 0.00%
The analysis of Oracle Corporation’s return on total capital over the specified periods reveals significant fluctuations, which merit detailed examination. On May 31, 2021, the return on total capital was reported at approximately 263.00%, indicating a highly effective utilization of the company's total capital base to generate profits during that fiscal year.
However, data for May 31, 2022, is unavailable, represented by a dash, which suggests either a lack of reported data or that the measure was not calculated or disclosed for that period.
By May 31, 2023, the return on total capital surged dramatically to approximately 822.37%. This substantial increase suggests an exceptional level of profitability relative to the company's total capital, possibly driven by exceptionally high earnings, significant operational leverage, or one-time gains that significantly elevated the return metric.
Subsequently, for May 31, 2024, the return decreased sharply to approximately 177.40%. Although still high, this decline indicates a normalization or reduction in profitability relative to total capital, possibly attributable to changes in operational performance, increased capital base, or adjustments in profit margins.
Finally, by May 31, 2025, the return on total capital is reported as 0.00%. This figure indicates either an absence of profit generation, a reset of the return metric, or potentially a data anomaly. The zero value implies no effective return on the company's total capital in that period, which could reflect operational challenges, extraordinary expenses, or other factors impacting profitability.
Overall, the data exhibits volatility in Oracle’s return on total capital over the five-year span, with periods of extraordinary performance followed by significant declines, culminating in a reported zero return in 2025. These fluctuations suggest periods of exceptional profitability possibly linked to unique circumstances, as well as periods of diminished or negligible returns, underscoring the importance of contextual financial analysis to assess the underlying drivers.
Peer comparison
May 31, 2025