Oracle Corporation (ORCL)
Return on total capital
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 12,807,000 | 17,523,000 | 16,866,000 | 16,211,000 | 15,441,000 | 14,834,000 | 14,209,000 | 13,601,000 | 12,798,000 | 13,071,000 | 13,453,000 | 9,596,000 | 10,548,000 | 11,073,000 | 11,431,000 | 15,862,000 | 15,676,000 | 14,964,000 | 14,617,000 | 14,323,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 20,969,000 | 16,730,000 | 13,746,000 | 10,816,000 | 8,704,000 | 5,623,000 | 4,378,000 | 2,841,000 | 1,556,000 | -1,912,000 | -3,776,000 | -5,449,000 | -5,768,000 | -8,211,000 | -9,658,000 | -1,541,000 | 5,952,000 | 9,637,000 | 8,616,000 | 10,140,000 |
| Return on total capital | 61.08% | 104.74% | 122.70% | 149.88% | 177.40% | 263.81% | 324.55% | 478.74% | 822.49% | — | — | — | — | — | — | — | 263.37% | 155.28% | 169.65% | 141.25% |
May 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $12,807,000K ÷ ($—K + $20,969,000K)
= 61.08%
The analysis of Oracle Corporation's return on total capital (ROTC) over the specified periods reveals significant fluctuations, indicating variability in the company's efficiency in generating profits from its capital base.
From the fiscal periods ending August 31, 2020, through May 31, 2021, the ROTC exhibited upward movement, peaking notably at 263.37% on May 31, 2021. During this interval, the company demonstrated strong capital utilization and profitability relative to its total capital employed, suggesting effective management and possibly favorable market conditions or operational efficiencies during that phase.
Data for the subsequent periods until early 2022 are unavailable, marked by placeholders, implying either data omissions or transitional reporting periods, which limits the continuity of the analysis during this time.
Remarkably, on May 31, 2023, the ROTC surged to an exceptional high of 822.49%, marking an extraordinary increase compared to prior periods. This indicates an extraordinary level of profitability and capital efficiency at that time, possibly driven by exceptional operational performance, strategic initiatives, or accounting adjustments.
Following this peak, the ROTC experienced a decline, registering at 478.74% on August 31, 2023, then decreasing further to 324.55% by November 30, 2023. Continued diminishment is observed through subsequent periods, with figures dropping to 263.81% in February 2024 and trending downward thereafter.
Looking forward, projections indicate a steady decline, with the ROTC reaching approximately 61.08% by May 31, 2025. This downward trend suggests a gradual reduction in the company's capital efficiency or profitability relative to total capital, which could be attributable to market saturation, increased competition, operational challenges, or a normalization of prior extraordinary gains.
Overall, the data depict a pattern of pronounced volatility in Oracle's return on total capital, characterized by remarkable peaks and subsequent declines. The recent trend implies a normalization or stabilization phase, although the levels remain significantly higher than typical industry benchmarks, highlighting periods of exceptional performance followed by a gradual decrease toward more sustainable profitability levels.
Peer comparison
May 31, 2025