Oracle Corporation (ORCL)
Debt-to-capital ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.90 | 0.99 | 1.09 | 0.94 | 0.85 |
May 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $76,264,000K ÷ ($76,264,000K + $8,704,000K)
= 0.90
The debt-to-capital ratio of Oracle Corporation has shown fluctuations over the last five years, ranging from 0.85 to 1.09. This ratio signifies the proportion of the company's capital structure that is financed by debt. A higher ratio indicates a greater reliance on debt financing, which can increase financial risk due to interest payments and repayment obligations.
In the latest fiscal year ending May 31, 2024, Oracle's debt-to-capital ratio stands at 0.90, indicating a decrease from the previous year. This may suggest that Oracle has reduced its debt relative to its total capital, which could lead to lower interest expenses and improved financial stability. However, it is essential to monitor this ratio over time to assess the company's ongoing debt management strategies and overall financial health.
Peer comparison
May 31, 2024