Oracle Corporation (ORCL)

Financial leverage ratio

May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 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
Total assets US$ in thousands 168,361,000 161,378,000 148,483,000 144,214,000 140,976,000 137,082,000 134,324,000 136,662,000 134,384,000 131,620,000 128,469,000 130,309,000 109,297,000 108,644,000 106,897,000 122,924,000 131,107,000 118,109,000 110,014,000 113,546,000
Total stockholders’ equity US$ in thousands 20,969,000 16,730,000 13,746,000 10,816,000 8,704,000 5,623,000 4,378,000 2,841,000 1,556,000 -1,912,000 -3,776,000 -5,449,000 -5,768,000 -8,211,000 -9,658,000 -1,541,000 5,952,000 9,637,000 8,616,000 10,140,000
Financial leverage ratio 8.03 9.65 10.80 13.33 16.20 24.38 30.68 48.10 86.37 22.03 12.26 12.77 11.20

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 notable fluctuations over the observed period. In the fiscal year ending August 31, 2020, the ratio stood at 11.20, indicating the proportion of debt used to finance the company's assets. This ratio increased substantially by the fiscal year ending November 30, 2020, reaching 12.77, and saw a slight decrease to 12.26 by February 28, 2021. A pronounced rise occurred in the fiscal year ending May 31, 2021, with the ratio escalating to 22.03, reflecting increased reliance on debt financing.

From August 2021 through February 2023, the ratio data are unavailable. However, a significant change is observed starting May 31, 2023, when the ratio surged to 86.37, indicating a substantial increase in leverage—most likely attributable to strategic financing decisions or corporate restructuring. Subsequently, the ratio decreased to 48.10 by August 31, 2023; further declined to 30.68 by November 30, 2023; and continued a downward trend to 24.38 by February 29, 2024.

The ratio maintains a declining trajectory into the fiscal year ending May 31, 2025, reaching 8.03. This ongoing decrease suggests a reduction in reliance on debt relative to equity, implying either deleveraging efforts or increased equity financing. Overall, the data portray a pattern of significant leverage fluctuations over time, with periods of rapid escalation followed by sustained decreases, reflecting dynamic changes in the company's financial structure and risk profile.


See also:

Oracle Corporation Financial Leverage (Quarterly Data)