An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

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)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	2,158)
Total assets (adjusted)	140,976)	134,384)	109,297)	131,107)	115,438)	110,867)
Adjustment to Total Debt
Total debt (as reported)	86,869)	90,481)	75,859)	84,245)	71,597)	56,167)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	—)	—)	2,158)
Add: Current lease liabilities for operating leases	1,313)	865)	727)	664)	575)	—)
Add: Non-current lease liabilities for operating leases	6,232)	3,984)	2,931)	2,118)	1,523)	—)
Total debt (adjusted)	94,414)	95,330)	79,517)	87,027)	73,695)	58,325)

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).

^{1, 2} Equal to total present value of future operating lease payments.

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 Turnover¹
Reported total asset turnover	0.38	0.37	0.39	0.31	0.34	0.36
Adjusted total asset turnover	0.38	0.37	0.39	0.31	0.34	0.36
Debt to Equity²
Reported debt to equity	9.98	84.33	—	16.08	5.93	2.58
Adjusted debt to equity	10.85	88.84	—	16.61	6.10	2.68
Return on Assets³ (ROA)
Reported ROA	7.42%	6.33%	6.15%	10.48%	8.78%	10.20%
Adjusted ROA	7.42%	6.33%	6.15%	10.48%	8.78%	10.00%

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).

¹ See details »

² See details »

³ See details »

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 deteriorated from 2022 to 2023 but then slightly improved 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 Operating Leases
Selected Financial Data (US$ in millions)
Revenues	52,961)	49,954)	42,440)	40,479)	39,068)	39,506)
Adjusted total assets	140,976)	134,384)	109,297)	131,107)	115,438)	110,867)
Activity Ratio
Adjusted total asset turnover²	0.38	0.37	0.39	0.31	0.34	0.36

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 ÷ 140,976 = 0.38

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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 deteriorated from 2022 to 2023 but then slightly improved 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 debt	86,869)	90,481)	75,859)	84,245)	71,597)	56,167)
Total Oracle Corporation stockholders’ equity (deficit)	8,704)	1,073)	(6,220)	5,238)	12,074)	21,785)
Solvency Ratio
Debt to equity¹	9.98	84.33	—	16.08	5.93	2.58
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	94,414)	95,330)	79,517)	87,027)	73,695)	58,325)
Total Oracle Corporation stockholders’ equity (deficit)	8,704)	1,073)	(6,220)	5,238)	12,074)	21,785)
Solvency Ratio
Adjusted debt to equity²	10.85	88.84	—	16.61	6.10	2.68

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 Debt to equity = Total debt ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 86,869 ÷ 8,704 = 9.98

² Adjusted debt to equity = Adjusted total debt ÷ Total Oracle Corporation stockholders’ equity (deficit)
= 94,414 ÷ 8,704 = 10.85

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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 Operating Leases
Selected Financial Data (US$ in millions)
Net income	10,467)	8,503)	6,717)	13,746)	10,135)	11,083)
Adjusted total assets	140,976)	134,384)	109,297)	131,107)	115,438)	110,867)
Profitability Ratio
Adjusted ROA²	7.42%	6.33%	6.15%	10.48%	8.78%	10.00%

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 ÷ 140,976 = 7.42%

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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 Operating Leases

Adjustments to Financial Statements for Operating Leases

Oracle Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Oracle Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)