Oracle Corporation (ORCL)
Return on total capital
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 15,255,000 | 12,631,000 | 10,404,000 | 15,495,000 | 14,058,000 |
| Long-term debt | US$ in thousands | 76,264,000 | 86,420,000 | 72,110,000 | 75,995,000 | 69,226,000 |
| Total stockholders’ equity | US$ in thousands | 8,704,000 | 1,073,000 | -6,220,000 | 5,238,000 | 12,074,000 |
| Return on total capital | 17.95% | 14.44% | 15.79% | 19.07% | 17.29% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $15,255,000K ÷ ($76,264,000K + $8,704,000K)
= 17.95%
The return on total capital for Oracle Corporation has shown a positive trend over the past five years, ranging from 14.44% in May 31, 2023, to 19.07% in May 31, 2021. The company's return on total capital for the most recent fiscal year, ending May 31, 2024, was 17.95%, indicating a strong ability to generate earnings relative to the total capital employed in the business. This suggests that Oracle is effectively utilizing its capital resources to generate profits for its shareholders. The consistent improvement in return on total capital underscores Oracle's efficiency in deploying its capital to generate returns for investors.
Peer comparison
May 31, 2024