Debt-to-Equity Ratio

A debt-to-equity ratio of 3.05x means that for every dollar of shareholder equity, Oracle has $3.05 in debt, indicating the company relies heavily on borrowed funds to finance its operations.

This is far above the technology sector median of 0.27x, placing Oracle in the 96th percentile among peers — meaning only 4% of comparable companies carry a higher debt load. The year-over-year change and quarter-over-quarter change are both not available, so there is no trend data to assess whether leverage is increasing or decreasing. A very high ratio with no observable trend signals elevated financial risk, as the company is more vulnerable to interest rate hikes or earnings shortfalls, but it does not indicate deterioration or improvement. This higher leverage could imply greater potential returns if investments funded by debt succeed, yet the lack of trend data leaves the outlook uncertain. The elevated debt-to-equity ratio contradicts a NEUTRAL view in that it highlights a substantial risk factor, but because no trend confirms worsening or improvement, it does not fully override the overall neutral assessment.

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