Financial statement analysis and common stock valuation

Analysis of Solvency Ratios

Examines Oracle Corp. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage
• Fixed Charge Coverage

Analysis of Profitability Ratios
Quarterly Data

Measures the income of Oracle Corp. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Oracle Corp..

Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of Oracle Corp., the result of its operating activities.

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Oracle Corp. assets. Operating performance ratios describe the relationship between the Oracle Corp. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Receivable Collection Period
• Average Payables Payment Period

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Analysis of Revenues

• Revenues as Reported

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Oracle Corp. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Reportable Segments

Oracle Corp. operates in 3 segments: Cloud and software business; Hardware business; and Services business.

• Segment Profit Margin
• Revenues
• Margin