Debt-to-Equity Ratio

Oracle’s Debt-to-Equity Ratio of 4.21x means that for every dollar of shareholder equity, the company has $4.21 in debt — a measure of financial leverage that indicates how much a company relies on borrowed money to fund its operations.

Compared to the technology sector median of 0.35x, Oracle’s ratio is extremely high, placing it in the 100th percentile among sector peers — meaning it has more debt relative to equity than virtually all other companies in its industry. The metric has been stable over the past two years, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%, showing no movement in the last eight quarters. This combination of a very high level of debt and a flat trend suggests a persistent, elevated financial risk, as the company’s heavy leverage is neither improving nor worsening — offering no near‑term catalyst for either risk reduction or opportunity. The stable high debt load contradicts the overall NEUTRAL verdict because it introduces a structural vulnerability that a neutral rating typically does not emphasize enough for conservative investors.

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