GURUFOCUS.COM » STOCK LIST » Technology » Software » Oracle Corp (NYSE:ORCL) » Definitions » ROE %

ORCL (Oracle) ROE % : 120.04% (As of Aug. 2024)


View and export this data going back to 1986. Start your Free Trial

What is Oracle ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Oracle's annualized net income for the quarter that ended in Aug. 2024 was $11,716 Mil. Oracle's average Total Stockholders Equity over the quarter that ended in Aug. 2024 was $9,760 Mil. Therefore, Oracle's annualized ROE % for the quarter that ended in Aug. 2024 was 120.04%.

The historical rank and industry rank for Oracle's ROE % or its related term are showing as below:

ORCL' s ROE % Range Over the Past 10 Years
Min: 7.16   Med: 46.2   Max: Negative Equity
Current: 174.91

During the past 13 years, Oracle's highest ROE % was Negative Equity%. The lowest was 7.16%. And the median was 46.20%.

ORCL's ROE % is ranked better than
98.48% of 2638 companies
in the Software industry
Industry Median: 4.28 vs ORCL: 174.91

Oracle ROE % Historical Data

The historical data trend for Oracle's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Oracle ROE % Chart

Oracle Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 59.87 158.80 Negative Equity Negative Equity 214.11

Oracle Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 562.30 321.10 202.42 175.56 120.04

Competitive Comparison of Oracle's ROE %

For the Software - Infrastructure subindustry, Oracle's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Oracle's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, Oracle's ROE % distribution charts can be found below:

* The bar in red indicates where Oracle's ROE % falls into.



Oracle ROE % Calculation

Oracle's annualized ROE % for the fiscal year that ended in May. 2024 is calculated as

ROE %=Net Income (A: May. 2024 )/( (Total Stockholders Equity (A: May. 2023 )+Total Stockholders Equity (A: May. 2024 ))/ count )
=10467/( (1073+8704)/ 2 )
=10467/4888.5
=214.11 %

Oracle's annualized ROE % for the quarter that ended in Aug. 2024 is calculated as

ROE %=Net Income (Q: Aug. 2024 )/( (Total Stockholders Equity (Q: May. 2024 )+Total Stockholders Equity (Q: Aug. 2024 ))/ count )
=11716/( (8704+10816)/ 2 )
=11716/9760
=120.04 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Aug. 2024) net income data. ROE % is displayed in the 30-year financial page.


Oracle  (NYSE:ORCL) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Aug. 2024 )
=Net Income/Total Stockholders Equity
=11716/9760
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(11716 / 53228)*(53228 / 142595)*(142595 / 9760)
=Net Margin %*Asset Turnover*Equity Multiplier
=22.01 %*0.3733*14.6101
=ROA %*Equity Multiplier
=8.22 %*14.6101
=120.04 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Aug. 2024 )
=Net Income/Total Stockholders Equity
=11716/9760
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (11716 / 12676) * (12676 / 16308) * (16308 / 53228) * (53228 / 142595) * (142595 / 9760)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9243 * 0.7773 * 30.64 % * 0.3733 * 14.6101
=120.04 %

Note: The net income data used here is four times the quarterly (Aug. 2024) net income data. The Revenue data used here is four times the quarterly (Aug. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Oracle ROE % Related Terms

Thank you for viewing the detailed overview of Oracle's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Oracle Business Description

Address
2300 Oracle Way, Austin, TX, USA, 78741
Oracle provides database technology and enterprise resource planning, or ERP, software to enterprises around the world. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system. Today, Oracle has 430,000 customers in 175 countries, supported by its base of 136,000 employees.
Executives
Maria Smith officer: EVP, Chief Accounting Officer C/O DELPHI ASSET MANAGEMENT CORP, 5525 KIETZKE LANE, SUITE 200, RENO NV 89511
Leon E Panetta director 3290 WEST BAYSHORE RD, PALO ALTO CA 94303
Lawrence Joseph Ellison director, 10 percent owner, officer: Chief Executive Officer C/O DELPHI ASSET MGMT CORPORATION, 5525 KIETZKE LANE, SUITE 200, RENO NV 89511
Edward Screven officer: Chief Corporate Architect C/O DELPHI ASSET MANAGEMENT CORP, 5525 KIETZKE LANE, SUITE 200, RENO NV 89511
Jeffrey Berg director C/O DELPHI ASSET MGMT. CORP, 5525 KIETZKE LANE, SUITE 200, RENO NV 89511
Michael J Boskin director C/O RIPPLEWOOD HOLDINGS LLC, ONE ROCKERFELLER PLAZA, NEW YORK NY 10020
George H Conrades director 500 TECHNOLOGY SQUARE, FIFTH FLOOR, CAMBRIDGE MA 02139
Safra Catz director, officer: President C/O DELPHI ASSET MGMT CORPORATION, 5525 KIETZKE LANE, SUITE 200, RENO NV 89511
Jeffrey Henley director, officer: Executive Vice Chairman C/O DELPHI ASSET MGMT. CORP, 5525 KIETZKE LANE, SUITE 200, RENO NV 89511
Naomi O Seligman director ONE DIAMOND HILL RD, MURRAY HILL NJ 07974
Rona Alison Fairhead director C/O INTERACTIVE DATA CORPORATION, 32 CROSBY DRIVE, BEDFORD MA 01730
Stuart Levey officer: EVP, Chief Legal Officer C/O DELPHI ASSET MANAGEMENT CORP, 5525 KIETZKE LANE, SUITE 200, RENO NV 89511
Renee Jo James director 2111 NE 25TH AVE, JF1-41, HILLSBORO OR 97124
Awo Ablo director C/O DELPHI ASSET MANAGEMENT, 5525 KIETZKE LANE, #200, RENO NV 89511
Charles W Moorman director DUKE ENERGY CORPORATION, 550 SOUTH TRYON STREET - DEC45A, CHARLOTTE NC 28202