Oracle Corporation (ORCL)

Financial leverage ratio

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Total assets	US$ in thousands	168,361,000	140,976,000	134,384,000	109,297,000	131,107,000
Total stockholders’ equity	US$ in thousands	20,969,000	8,704,000	1,556,000	-5,768,000	5,952,000
Financial leverage ratio		8.03	16.20	86.37	—	22.03

May 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $168,361,000K ÷ $20,969,000K
= 8.03

The financial leverage ratio of Oracle Corporation exhibits significant variability over the analyzed period. As of May 31, 2021, the ratio was recorded at 22.03, indicating a relatively high level of financial leverage, with the company employing substantial debt relative to its equity or assets. Notably, by May 31, 2022, data for the ratio is unavailable or not reported, which leaves a gap in the trend analysis for that year.

Subsequently, the ratio increases markedly to 86.37 as of May 31, 2023, suggesting a substantial escalation in the company's leverage. This rise could indicate an increased reliance on debt financing, potentially to fund expansion, acquisitions, or other strategic initiatives, or perhaps reflecting a change in accounting or reporting standards.

Following this peak, the ratio declines to 16.20 by May 31, 2024, representing a significant reduction in leverage relative to the previous year's high. This decrease may point to efforts to deleverage, possibly through debt repayment, equity issuance, or operational improvements.

Finally, by May 31, 2025, the ratio further decreases to 8.03, illustrating a continued trend toward lower financial leverage. Over this period, Oracle appears to have moderated its debt levels relative to its assets or equity, leading to a more conservative leverage stance.

Overall, the financial leverage ratio demonstrates periods of high leverage followed by substantial reductions, reflecting potential strategic shifts in capital structure management.