Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

$24.99

Return on Capital (ROC)

Microsoft Excel

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Return on Invested Capital (ROIC)

Oracle Corp., ROIC calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Invested capital2
Performance Ratio
ROIC3
Benchmarks
ROIC, Competitors4
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.

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 NOPAT. See details »

2 Invested capital. See details »

3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Oracle Corp. ROIC improved from 2022 to 2023 and from 2023 to 2024.

Decomposition of ROIC

Oracle Corp., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
May 31, 2024 = × ×
May 31, 2023 = × ×
May 31, 2022 = × ×
May 31, 2021 = × ×
May 31, 2020 = × ×
May 31, 2019 = × ×

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 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2024 year is the increase in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Oracle Corp., OPM calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
 
Revenues
Add: Increase (decrease) in deferred revenues
Adjusted revenues
Profitability Ratio
OPM3
Benchmarks
OPM, Competitors4
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues
= 100 × ÷ =

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Oracle Corp. OPM improved from 2022 to 2023 and from 2023 to 2024.

Turnover of Capital (TO)

Oracle Corp., TO calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data (US$ in millions)
Revenues
Add: Increase (decrease) in deferred revenues
Adjusted revenues
 
Invested capital1
Efficiency Ratio
TO2
Benchmarks
TO, Competitors3
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.

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 Invested capital. See details »

2 2024 Calculation
TO = Adjusted revenues ÷ Invested capital
= ÷ =

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Oracle Corp. TO deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Effective Cash Tax Rate (CTR)

Oracle Corp., CTR calculation, comparison to benchmarks

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
Tax Rate
CTR3
Benchmarks
CTR, Competitors4
Accenture PLC
Adobe Inc.
Autodesk Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Oracle Corp. CTR decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.