Oracle Corporation (ORCL)
Debt-to-equity 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-equity ratio | 8.76 | 80.54 | — | 14.51 | 5.73 |
May 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $76,264,000K ÷ $8,704,000K
= 8.76
The debt-to-equity ratio for Oracle Corporation has exhibited significant fluctuations over the past five years. In particular, there was a notable increase in the ratio from 5.73 in May 2020 to 80.54 in May 2023, indicating a substantial rise in debt relative to equity during that period. However, this was followed by a significant decrease in the ratio to 8.76 in May 2024, suggesting a substantial reduction in debt relative to equity in the most recent year.
It is important to note that the debt-to-equity ratio for May 31, 2022, is not available in the table. The variation in the ratio over the years may imply changes in the company's capital structure and financial strategies. A high debt-to-equity ratio can indicate a higher level of financial risk, as the company relies more on debt financing. Conversely, a lower ratio may reflect a more conservative approach with less financial leverage.
Overall, the trend in Oracle Corporation's debt-to-equity ratio highlights the importance of closely monitoring the company's capital structure and financial health to assess its ability to meet financial obligations and support future growth.
Peer comparison
May 31, 2024