Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Oracle Corp., balance sheet: goodwill and intangible assets

US$ in millions

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Developed technology	4,235)	4,300)	3,966)	4,237)	4,471)	5,406)
Cloud services and license support agreements and related relationships	8,460)	9,456)	5,260)	5,497)	5,589)	5,693)
Cloud license and on-premise license agreements and related relationships	2,563)	2,688)	356)	—)	—)	—)
Other	3,533)	3,582)	865)	1,269)	1,341)	1,589)
Intangible assets, gross	18,791)	20,026)	10,447)	11,003)	11,401)	12,688)
Accumulated amortization	(11,901)	(10,189)	(9,007)	(8,573)	(7,663)	(7,409)
Intangible assets, net	6,890)	9,837)	1,440)	2,430)	3,738)	5,279)
Goodwill	62,230)	62,261)	43,811)	43,935)	43,769)	43,779)
Intangible assets and goodwill	69,120)	72,098)	45,251)	46,365)	47,507)	49,058)

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

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Item	Description	The company
Intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Oracle Corp. intangible assets, net increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Oracle Corp. goodwill increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Oracle Corp. intangible assets and goodwill increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Oracle Corp., adjustments to financial statements

US$ in millions

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Adjustment to Total Assets
Total assets (as reported)	140,976)	134,384)	109,297)	131,107)	115,438)	108,709)
Less: Goodwill	62,230)	62,261)	43,811)	43,935)	43,769)	43,779)
Total assets (adjusted)	78,746)	72,123)	65,486)	87,172)	71,669)	64,930)
Adjustment to Total Oracle Corporation Stockholders’ Equity (deficit)
Total Oracle Corporation stockholders’ equity (deficit) (as reported)	8,704)	1,073)	(6,220)	5,238)	12,074)	21,785)
Less: Goodwill	62,230)	62,261)	43,811)	43,935)	43,769)	43,779)
Total Oracle Corporation stockholders’ equity (deficit) (adjusted)	(53,526)	(61,188)	(50,031)	(38,697)	(31,695)	(21,994)

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

Oracle Corp., Financial Data: Reported vs. Adjusted

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Oracle Corp., adjusted financial ratios

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Total Asset Turnover
Reported total asset turnover	0.38	0.37	0.39	0.31	0.34	0.36
Adjusted total asset turnover	0.67	0.69	0.65	0.46	0.55	0.61
Financial Leverage
Reported financial leverage	16.20	125.24	—	25.03	9.56	4.99
Adjusted financial leverage	—	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	120.26%	792.45%	—	262.43%	83.94%	50.87%
Adjusted ROE	—	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	7.42%	6.33%	6.15%	10.48%	8.78%	10.20%
Adjusted ROA	13.29%	11.79%	10.26%	15.77%	14.14%	17.07%

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Oracle Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Oracle Corp. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Oracle Corp., Financial Ratios: Reported vs. Adjusted

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	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues	52,961)	49,954)	42,440)	40,479)	39,068)	39,506)
Total assets	140,976)	134,384)	109,297)	131,107)	115,438)	108,709)
Activity Ratio
Total asset turnover¹	0.38	0.37	0.39	0.31	0.34	0.36
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	52,961)	49,954)	42,440)	40,479)	39,068)	39,506)
Adjusted total assets	78,746)	72,123)	65,486)	87,172)	71,669)	64,930)
Activity Ratio
Adjusted total asset turnover²	0.67	0.69	0.65	0.46	0.55	0.61

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

2024 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 52,961 ÷ 140,976 = 0.38

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 52,961 ÷ 78,746 = 0.67

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Oracle Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	140,976)	134,384)	109,297)	131,107)	115,438)	108,709)
Total Oracle Corporation stockholders’ equity (deficit)	8,704)	1,073)	(6,220)	5,238)	12,074)	21,785)
Solvency Ratio
Financial leverage¹	16.20	125.24	—	25.03	9.56	4.99
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	78,746)	72,123)	65,486)	87,172)	71,669)	64,930)
Adjusted total Oracle Corporation stockholders’ equity (deficit)	(53,526)	(61,188)	(50,031)	(38,697)	(31,695)	(21,994)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—	—

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 140,976 ÷ 8,704 = 16.20

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Oracle Corporation stockholders’ equity (deficit)
= 78,746 ÷ -53,526 = —

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	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	10,467)	8,503)	6,717)	13,746)	10,135)	11,083)
Total Oracle Corporation stockholders’ equity (deficit)	8,704)	1,073)	(6,220)	5,238)	12,074)	21,785)
Profitability Ratio
ROE¹	120.26%	792.45%	—	262.43%	83.94%	50.87%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	10,467)	8,503)	6,717)	13,746)	10,135)	11,083)
Adjusted total Oracle Corporation stockholders’ equity (deficit)	(53,526)	(61,188)	(50,031)	(38,697)	(31,695)	(21,994)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—	—

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

2024 Calculations

¹ ROE = 100 × Net income ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 100 × 10,467 ÷ 8,704 = 120.26%

² Adjusted ROE = 100 × Net income ÷ Adjusted total Oracle Corporation stockholders’ equity (deficit)
= 100 × 10,467 ÷ -53,526 = —

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	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	10,467)	8,503)	6,717)	13,746)	10,135)	11,083)
Total assets	140,976)	134,384)	109,297)	131,107)	115,438)	108,709)
Profitability Ratio
ROA¹	7.42%	6.33%	6.15%	10.48%	8.78%	10.20%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	10,467)	8,503)	6,717)	13,746)	10,135)	11,083)
Adjusted total assets	78,746)	72,123)	65,486)	87,172)	71,669)	64,930)
Profitability Ratio
Adjusted ROA²	13.29%	11.79%	10.26%	15.77%	14.14%	17.07%

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 10,467 ÷ 140,976 = 7.42%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 10,467 ÷ 78,746 = 13.29%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Oracle Corp. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Oracle Corp. (NYSE:ORCL)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Oracle Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Oracle Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)