ORCL Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Oracle Corp - Alpha Spread

Oracle Corp
NYSE:ORCL

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Oracle Corp
NYSE:ORCL
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Price: 141.81 USD -0.56% Market Closed
Market Cap: 390.8B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Oracle Corp

Revenue
53B USD
Cost of Revenue
-15.1B USD
Gross Profit
37.8B USD
Operating Expenses
-21.7B USD
Operating Income
16.1B USD
Other Expenses
-5.6B USD
Net Income
10.5B USD

Margins Comparison
Oracle Corp Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Oracle Corp
NYSE:ORCL
390.7B USD
71%
30%
20%
US
Microsoft Corp
NASDAQ:MSFT
3T USD
70%
45%
36%
US
ServiceNow Inc
NYSE:NOW
169.8B USD
79%
11%
12%
US
Palo Alto Networks Inc
NASDAQ:PANW
108.7B USD
74%
9%
32%
US
VMware Inc
XETRA:BZF1
58B EUR
81%
14%
10%
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
60.4B USD
75%
2%
5%
US
Fortinet Inc
NASDAQ:FTNT
57.4B USD
78%
26%
24%
US
Xperi Holding Corp
LSE:0M2A
54.6B USD
0%
33%
13%
US
Zscaler Inc
NASDAQ:ZS
23.5B USD
78%
-7%
-4%
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
21.3B USD
88%
35%
34%
US
Gen Digital Inc
NASDAQ:GEN
15.6B USD
81%
32%
16%
Country US
Market Cap 390.7B USD
Gross Margin
71%
Operating Margin
30%
Net Margin
20%
Country US
Market Cap 3T USD
Gross Margin
70%
Operating Margin
45%
Net Margin
36%
Country US
Market Cap 169.8B USD
Gross Margin
79%
Operating Margin
11%
Net Margin
12%
Country US
Market Cap 108.7B USD
Gross Margin
74%
Operating Margin
9%
Net Margin
32%
Country US
Market Cap 58B EUR
Gross Margin
81%
Operating Margin
14%
Net Margin
10%
Country US
Market Cap 60.4B USD
Gross Margin
75%
Operating Margin
2%
Net Margin
5%
Country US
Market Cap 57.4B USD
Gross Margin
78%
Operating Margin
26%
Net Margin
24%
Country US
Market Cap 54.6B USD
Gross Margin
0%
Operating Margin
33%
Net Margin
13%
Country US
Market Cap 23.5B USD
Gross Margin
78%
Operating Margin
-7%
Net Margin
-4%
Country IL
Market Cap 21.3B USD
Gross Margin
88%
Operating Margin
35%
Net Margin
34%
Country US
Market Cap 15.6B USD
Gross Margin
81%
Operating Margin
32%
Net Margin
16%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Oracle Corp Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Oracle Corp
NYSE:ORCL
390.7B USD
214%
8%
15%
11%
US
Microsoft Corp
NASDAQ:MSFT
3T USD
37%
19%
32%
26%
US
ServiceNow Inc
NYSE:NOW
169.8B USD
15%
7%
11%
8%
US
Palo Alto Networks Inc
NASDAQ:PANW
108.7B USD
75%
15%
7%
12%
US
VMware Inc
XETRA:BZF1
58B EUR
106%
5%
10%
6%
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
60.4B USD
7%
3%
1%
2%
US
Fortinet Inc
NASDAQ:FTNT
57.4B USD
431%
17%
35%
29%
US
Xperi Holding Corp
LSE:0M2A
54.6B USD
14%
4%
12%
10%
US
Zscaler Inc
NASDAQ:ZS
23.5B USD
-9%
-2%
-6%
-13%
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
21.3B USD
30%
15%
23%
22%
US
Gen Digital Inc
NASDAQ:GEN
15.6B USD
29%
4%
10%
9%
Country US
Market Cap 390.7B USD
ROE
214%
ROA
8%
ROCE
15%
ROIC
11%
Country US
Market Cap 3T USD
ROE
37%
ROA
19%
ROCE
32%
ROIC
26%
Country US
Market Cap 169.8B USD
ROE
15%
ROA
7%
ROCE
11%
ROIC
8%
Country US
Market Cap 108.7B USD
ROE
75%
ROA
15%
ROCE
7%
ROIC
12%
Country US
Market Cap 58B EUR
ROE
106%
ROA
5%
ROCE
10%
ROIC
6%
Country US
Market Cap 60.4B USD
ROE
7%
ROA
3%
ROCE
1%
ROIC
2%
Country US
Market Cap 57.4B USD
ROE
431%
ROA
17%
ROCE
35%
ROIC
29%
Country US
Market Cap 54.6B USD
ROE
14%
ROA
4%
ROCE
12%
ROIC
10%
Country US
Market Cap 23.5B USD
ROE
-9%
ROA
-2%
ROCE
-6%
ROIC
-13%
Country IL
Market Cap 21.3B USD
ROE
30%
ROA
15%
ROCE
23%
ROIC
22%
Country US
Market Cap 15.6B USD
ROE
29%
ROA
4%
ROCE
10%
ROIC
9%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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