ORCLNEUTRAL

Return on Equity (ROE)

53.4%

Higher than 91% of Technology sector peers

Updated 8h ago

Sector Performance

91th percentile

ORCL

53.4%

Sector Median

8.2%

Sector Avg

2.4%

📊

Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from shareholders’ money; a 53.4% ROE means ORCL earns $0.534 for every dollar of equity.

This is far above the sector median of 8.2%, placing ORCL in the 91st percentile among its Technology peers. The trend data is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, with no historical trend for the last eight quarters. The very high ROE alone suggests strong profitability, but without any trend direction, it is impossible to assess whether this performance is improving, stable, or declining. The missing trend introduces uncertainty: a high level could still hide a recent deterioration, making it a potential risk for investors seeking consistency. Given that the overall verdict is NEUTRAL, this metric does not clearly support or contradict it—the outstanding relative level is a positive signal, but the lack of trend data prevents drawing a decisive conclusion.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ORCL?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ORCL's Return on Equity (ROE) compare to its sector?

ORCL's Return on Equity (ROE) of 53.4% compares to a Technology sector median of 8.2%, placing it in the 91th percentile.

Who are ORCL's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), U (-20.1%), UCTT (-22.5%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.