Revenue Analysis
Reviewing the Total Revenue, Operating Revenue, and Gross Profit across various fiscal periods shows consistent growth in Total and Operating Revenue. From May 2023 to February 2024, Total Revenue grew from approximately $12.4 billion to over $13.2 billion. Gross Profit has similarly increased, highlighting improved revenue management and possibly better margin control, with the Gross Profit margin improving noticeably from around 72% to 71% in these periods.
Cost Management
The Cost of Revenue and Operating Expenses show a steady increment, suggesting heightened operational activities. For instance, the Cost of Revenue increased from about $2.8 billion in February 2023 to approximately $3.9 billion by February 2024. This suggests that while ORCL is generating more revenue, it is also incurring higher costs to deliver its services or products.
Profitability Analysis
EBITDA, Operating Income, Pretax Income, and Net Income are crucial indicators of ORCL’s financial health. EBITDA showed growth, peaking at $5.7 billion by February 2024 from $4.7 billion in February 2023. Correspondingly, Net Income improved from $1.9 billion to $2.4 billion in the same periods, illustrating effective cost management and operational efficiency.
Cash Flow Indicators
Reconciled Depreciation figures remain significant, indicating substantial capital expenditure and asset base, essential for sustaining growth. Interest Expenses have also risen slightly, reflecting possible new debt or financing activities.
Taxation
The Tax Provision and Tax Effect of Unusual Items suggest variability in tax obligations and impacts of non-recurring items on tax calculations. The Tax Rate fluctuates but remains within a reasonable range of about 14.5% to 21%, influencing the net earnings.
Shareholder Metrics
Diluted EPS and Basic EPS show an upward trend, beneficial for shareholders. From February 2023 to February 2024, Diluted EPS increased from $0.68 to $0.85, and Basic EPS from $0.70 to $0.87, signaling improved earnings per share over the period. The count of both Diluted and Basic Average Shares also slightly varies, influencing the earnings per share interpretations.
Conclusion
Overall, ORCL has shown commendable growth in revenue with an effective strategic approach to managing costs and improving profitability. Continued investment in operational capabilities and managing tax obligations efficiently are recommended to sustain this positive trajectory. Investors might be reassured by the consistent increase in EPS, a favorable indicator for potential investment growth.