Oracle Corporation (ORCL)
Debt-to-equity 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-equity ratio | 8.76 | 14.67 | 21.33 | 35.63 | 80.54 | — | — | — | — | — | — | — | 14.51 | 7.14 | 8.02 | 7.14 | 5.73 | 3.46 | 3.26 | 2.75 |
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 of Oracle Corporation has fluctuated over the past few years, indicating variations in the company's leverage and financial risk. As of May 31, 2024, the debt-to-equity ratio stands at 8.76, suggesting that Oracle has a higher level of debt relative to equity. This ratio has decreased compared to the previous period, which may indicate a reduction in debt levels or an increase in equity.
Looking back over the historical trend, the debt-to-equity ratio has shown significant volatility, reaching a high of 80.54 on May 31, 2023, signaling a substantial reliance on debt financing at that time. The ratio has since declined, reflecting potential efforts to improve the balance between debt and equity.
It is essential to note that a high debt-to-equity ratio can imply a higher financial risk for the company, as it indicates a greater dependence on debt to finance operations. Conversely, a lower ratio suggests a more conservative capital structure with less reliance on debt.
Overall, monitoring the debt-to-equity ratio of Oracle Corporation is crucial for assessing its financial health and evaluating its capital structure decisions in managing risk and leveraging opportunities for growth.
Peer comparison
May 31, 2024