Oracle Corporation (ORCL)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.90 | 0.94 | 0.96 | 0.97 | 0.99 | 1.03 | 1.06 | 1.08 | 1.09 | 1.14 | 1.16 | 1.02 | 0.94 | 0.88 | 0.89 | 0.88 | 0.85 | 0.78 | 0.77 | 0.73 |
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 for Oracle Corporation has shown a fluctuating trend over the past few quarters. As of May 31, 2024, the ratio stands at 0.90, indicating that the company's debt accounts for 90% of its total capital. This suggests that Oracle relies more on equity financing compared to debt financing.
Although the ratio has been decreasing from its recent peak of 1.16 in November 2021, it has been above 1 during some periods, indicating a higher proportion of debt in the company's capital structure. It's worth noting that a high debt-to-capital ratio can signal financial risk and a heavier reliance on borrowing to fund operations or expansion.
Overall, a decreasing trend in the debt-to-capital ratio could suggest that Oracle is gradually reducing its debt levels relative to its total capital. However, further monitoring of this ratio is advisable to assess the company's ongoing debt management strategies and financial health.
Peer comparison
May 31, 2024