ORCLOracle Corporation
Is the business good?
The checks split: earnings fully cash-backed (2.3×) and margins widening, but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 41% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ORCL?
Oracle Corporation earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.8 points above what the capital costs: growth creates value
- Operating margin
- 32%
Operating margin · Software - Infrastructure median 7.5% · 12 months to Q1 2027
- Cash conversion
- 2.34×
Cash conversion · 1.39× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +3.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | 38% |
| FY2022 | 26% |
| FY2023 | 26% |
| FY2024 | 29% |
| FY2025 | 31% |
| FY2026 | 31% |
Details›
- Operating margin12 months to Q1 2027
- 32%
- Net margin12 months to Q1 2027
- 26%
- Free cash flow margin
- −40%
- R&D as % of revenue
- 14%
- Revenue, trailing twelve months
- $71.8B
- Free cash flow, trailing twelve months
- −$28.7B
- Net income, trailing twelve months
- $18.9B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
The closest names by size in the same industry