Oracle Corporation (ORCL)
Return on total capital
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 15,256,000 | 14,660,000 | 14,045,000 | 13,437,000 | 12,633,000 | 12,897,000 | 13,278,000 | 9,461,000 | 10,404,000 | 10,929,000 | 11,283,000 | 15,672,000 | 15,495,000 | 14,917,000 | 14,588,000 | 14,291,000 | 14,058,000 | 14,174,000 | 14,239,000 | 14,257,000 |
| Long-term debt | US$ in thousands | 76,264,000 | 82,470,000 | 82,468,000 | 84,442,000 | 86,420,000 | 86,396,000 | 81,173,000 | 75,480,000 | 72,110,000 | 72,165,000 | 73,433,000 | 75,970,000 | 75,995,000 | 63,541,000 | 63,531,000 | 67,769,000 | 69,226,000 | 49,320,000 | 50,670,000 | 50,692,000 |
| Total stockholders’ equity | US$ in thousands | 8,704,000 | 5,623,000 | 3,866,000 | 2,370,000 | 1,073,000 | -2,421,000 | -4,246,000 | -5,875,000 | -6,220,000 | -8,696,000 | -10,101,000 | -1,541,000 | 5,238,000 | 8,900,000 | 7,917,000 | 9,491,000 | 12,074,000 | 14,235,000 | 15,563,000 | 18,433,000 |
| Return on total capital | 17.95% | 16.64% | 16.27% | 15.48% | 14.44% | 15.36% | 17.26% | 13.59% | 15.79% | 17.22% | 17.82% | 21.06% | 19.07% | 20.59% | 20.42% | 18.50% | 17.29% | 22.30% | 21.50% | 20.62% |
May 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $15,256,000K ÷ ($76,264,000K + $8,704,000K)
= 17.95%
The return on total capital for Oracle Corporation has shown fluctuation over the past 20 periods. The return on total capital ranged from a low of 13.59% in Aug 31, 2022, to a high of 22.30% in Feb 29, 2020. The average return on total capital over this period is approximately 17.60%.
The return on total capital indicates how effectively the company is generating profits from its capital investments. Oracle Corporation's return on total capital has generally been above average, with some periods showing stronger performance compared to others. This indicates that the company has been efficient in utilizing its capital to generate profits for its shareholders.
Overall, the return on total capital trend for Oracle Corporation suggests that the company has been able to generate satisfactory returns on its capital investments, reflecting positively on its operational efficiency and financial performance.
Peer comparison
May 31, 2024