AMARNATH SJP Project

`
(A research project report, submitted in partial fulfilment of the Masters in

Business Administration requirement at Pondicherry Central University)
A STUDY AND ANALYSIS OF THE PERFORMANCE OF

ORACLE CORPORATION”
SUBMITTED BY: AMARNATH M
Enrolment No: 5719370032

Course and Specialisation: MBA in Finance
Batch: 2019-21
Under the Guidance of

Dr. KANTHIMATHINATHAN SELVANAYAGAM
MBA TWINNING PROGRAMME

THE BANGALORE JESUIT EDUCATIONAL SOCIETY ®
PONDICHERRY UNIVERSITY
June 2021
`
(A research project report, submitted in partial fulfilment of the Masters in

Business Administration requirement at Pondicherry Central University)
A STUDY AND ANALYSIS OF THE PERFORMANCE OF

ORACLE CORPORATION”
SUBMITTED BY: AMARNATH M
Enrolment No: 5719370032

Course and Specialisation: MBA in Finance
Batch: 2019-21
Under the Guidance of

Dr. KANTHIMATHINATHAN SELVANAYAGAM
MBA TWINNING PROGRAMME

THE BANGALORE JESUIT EDUCATIONAL SOCIETY ®
June 2021
`
THE BANGALORE JESUIT EDUCATIONAL SOCIETY (R)

ST. JOSEPH’S MBA TWINNING PROGRAMME
With
(A Central University established by an Act of Parliament No. 53 of 1985)
COLLEGE CERTIFICATE
This is to certify that this project titled “A STUDY AND ANALYSIS OF

THE PERFORMANCE OF ORACLE CORPORATION” is based on an
original project study conducted by
Student Name: AMARNATH M

Enrolment Number: 5719370032
of IV semester MBA under the guidance of Dr. KANTHIMATHINATHAN

SELVANAYAGAM.
This research project report is original and not submitted earlier for the award of
any degree / diploma or associated to any other University/Institution.
Signature of the Candidate Signature of the Director
Signature of the Coordinator
Place: Bangalore
Date:
`
THE BANGALORE JESUIT EDUCATIONAL SOCIETY (R)

ST. JOSEPH’S MBA TWINNING PROGRAMME
With
(A Central University established by an Act of Parliament No. 53 of 1985)
CERTIFICATE OF THE GUIDE
This is to certify that the project work titled “A STUDY AND ANALYSIS OF THE
PERFORMANCE OF ORACLE CORPORATIONUSING RATIOS” is a
bonafide work of AMARNATH M. Enrolment No: 5719370032 carried out in
partial fulfillment for the award of degree of Master of Business Administration in
FINANCE in Pondicherry University under my guidance. This project work is
original and not submitted earlier for the award of any degree/diploma or
associateship of any other University/Institution.
Signature of the Candidate Signature of the Guide
Place: Bangalore
Date:
`
STUDENT’S DECLARATION
I AMARNATH M hereby declare that the project work titled “A STUDY AND
ANALYSIS OF THE PERFORMANCE OF ORACLE
CORPORATIONUSING RATIOS” is the original work done by me and
submitted as a part of MBA Twinning Pondicherry University in partial
fulfilment of requirements for the award of Masters in Business Administration
in Finance. It is an original work done by me under the guidance of Dr.
KANTHIMATHINATHAN SELVANAYAGAM.
Signature of the Student
Enrollment No:5719370032
`
Oracle India Pvt. Ltd. Oracle Technology Park, Ph: +91 80 4107 6000
India Development Center 3, Bannerghatta Road, Fax +91 80 2552 6124
Bengaluru – 560 029, India
TO WHOMSOEVER IT MAY CONCERN
This is to certify that AMARNATH M [Reg No. 5719370032], a student of MASTER OF

BUSINESS ADMINISTRATION Twinning Programme course of Pondicherry University from St.
Joseph’s, Bangalore has successfully completed project report titled as “A STUDY AND ANALYSIS OF
THE PERFORMANCE OF ORACLE CORPORATION” at our organization. The report was thoroughly
scrutinized and validated.
Swathi Gupta
(H R Functions)
AUTHORIZED SIGNATORY
`
ACKNOWLEDGEMENT
‘It is not completely possible to prepare a report without the assistance and
guidance of other people. On the very outset of this particular project, I would
like to extend my sincere and heartfelt obligation towards all the personages who
have helped me in this endeavour without the active guidance, encouragement, I
would not made headway in the project.
I am ineffably indebted to Dr. KANTHIMATHINATHAN

SELVANAYAGAM for conscientious and thorough guidance to accomplish this
particular project.
I express sincere thanks to ‘ORACLE CORPORATION’ for granting

permission to carry out this project study in their esteemed organization.
I also acknowledge with a sense of reverence, my gratitude towards my beloved

family, who has always supported me mortally as well as economically.
At last, but not least gratitude goes to all the individuals who directly or indirectly
helped me to complete this study report.
AMARNATH M
Date:
Place: Bangalore Reg. No: 5719370032
`
EXECUTIVE SUMMARY
Oracle Corporation Company is a multinational computer technology

corporation, headquartered in Redwood Shores, California. Found by Larry Ellison,
Bob Miner and Ed Oates in 1977, under the name Software Development Laboratories
(SDL). The company specializes primarily in developing and marketing database
software and technology, cloud engineered systems and enterprise software products—
particularly its own brands of database management systems.
Oracle Corp. is a 39-year-old-plus company builds and develops tools for

database development and systems of middle-tier software, enterprise resource
planning (ERP) software, customer relationship management (CRM) software
and supply chain management (SCM) software.
Oracle designs, manufactures and sells both software and hardware products, as
well as offering services that complement them (such as financing, training,
consulting, and hosting services). Many of the products have been added to
Oracles’ portfolio through acquisitions. The industry that Oracle falls under is
Enterprise software and Cloud computing.
In 2016 Oracle was the second largest software maker by revenue, after
Microsoft. It is a public company with $47.29 billion shares as per book value of
2018 with 4.31billion shareholders. Net sales in fiscal year 2018 were
approximately $241.2 million. Oracle Corp trades on the New York Stock
exchange under the symbol NYSE: ORCL.
`
CONTENTS
Sl. No Title Page No.
Chapter - 1 Introduction
Theoretical background 1-23
Financial Statement Analysis
Types of financial Analysis
Classifications of Financial ratios
Chapter - 2 Research Methodology
2.1 Introduction
2.2 Need for the study 24-27
2.3 Liquidity and Profitability
2.4 Scope of the study
2.5 Objectives of the study
2.6 Statement of the Problem
2.7 Research Methodology
2.8 Limitations
Chapter –3 Company Profile 28-54
Chapter –4 Analysis and Interpretation 55-77
Chapter –5 Findings, Recommendations and Conclusion 78-82
Bibliography 83
Annexure 83-88
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TABLES
Sl. No Table No Title of the tables Page No
1 4.1 Current Ratio 56
2 4.2 Quick Ratio/ Acid Test Ratio 57
3 4.3 Debt/Asset Ratio 58
4 4.4 Cash Ratio 59
5 4.5 Current Liabilities to Net worth 60
6 4.6 Debt/equity Ratio 62
7 4.7 Capitalisation Ratio 63
8 4.8 Average Age of Inventory Average 64
9 4.9 Inventory Turnover Ratio 65
10 4.10 Average Collection Period 67
11 4.11 Total Asset Turnover Ratio 68
12 4.12 Fixed Assets Turnover Ratio 69
13 4.13 Gross Profit Margin 71
14 4.14 Operating Profit Ratio 72
15 4.15 Net Profit Ratio 73
16 4.16 Earnings per Share 74
17 4.17 Price Earnings ratio 75
18 4.18 Average Age of Payables 77

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GRAPHS
Sl. No Table No Title of the tables Page No
1 4.1 Current Ratio 56
2 4.2 Quick Ratio/ Acid Test Ratio 57
3 4.3 Debt/Asset Ratio 58
4 4.4 Cash Ratio 59
5 4.5 Current Liabilities to Net worth 60
6 4.6 Debt/equity Ratio 62
7 4.7 Capitalisation Ratio 63
8 4.8 Average Age of Inventory Average 64
9 4.9 Inventory Turnover Ratio 65
10 4.10 Average Collection Period 67
11 4.11 Total Asset Turnover Ratio 68
12 4.12 Fixed Assets Turnover Ratio 69
13 4.13 Gross Profit Margin 71
14 4.14 Operating Profit Ratio 72
15 4.15 Net Profit Ratio 73
16 4.16 Earnings per Share 74

`
Financial Statement Analysis of ORACLE Corporation
CHAPTER - 1
INTRODUCTION
pg. 1
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INTRODUCTION
FINANCIAL STATEMENT ANALYSIS
Definition
According to Myers “Financial statement analysis is largely is a study of the
Relationship among the various financial factors in a business as disclose by a single set
of statement and a study of the trend of these factors as show in a series of statements.
Financial statement analysis is a process which examines past and current financial data
for the purpose of evaluating performance and estimating future risks and potential and
it means different things to different people depending on their individual interest.
Financial statement analysis is the process of analysing a company's financial statements for
decision-making purposes. External stakeholders use it to understand the overall health of an
organization as well as to evaluate financial performance and business value. Internal
constituents use it as a monitoring tool for managing the finances.
• A financial statement is a collection of collective data organized as per

logical & unchanging accounting procedure.
• Financial statements are the basis of decision making by company’s management.
• The end result of business transactions are financial statement.
• Its purpose is to convey an understanding of some financial aspects of

business firm.
• Financial statement generally refers to the two statements: Balance sheet and profit
& loss A/c.
pg. 2
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The importance of Financial Statement Analysis
• Identify changes or turning points in trends, amounts, and relationships.

• Evaluation of past performance and assessment of current position.
• Yield valuable information about the quality of a company’s earnings, trends and
relationships, and the strengths and weaknesses of its financial position.
• Identification of future potential opportunities and related risk.
• Assist creditors and investors in understanding the level of information they require
for making decisions relating to their interests in a particular company (such as
risk, return, dividend or interest yield, safety, liquidity, growth, and others)
o Whether to continue or discontinue its main operation or part of its business;
o What to make or to purchase certain materials in the manufacture of its product;
o What to acquire or to rent/lease certain machineries and equipment in the

production of its goods;
o Making decision on whether to issue stocks or initiate & negotiate for a bank
loan to increase its working capital needs;
o Decisions regarding investing or lending money; other decisions that allow
organization’s management to make an informed selection on various
alternatives options in the conduct of its regular business.
pg. 3
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Financial Statements:
Financial statements are commonly prepared reports by a company’s management to present

the company’s financial performance and its position at a given point in time. A general
financial statement usually includes balance sheet, income statements, statement of owner’s
equity, and statement of cash flows (inflows and outflows). These statements are prepared to
give users outside of the company, like investors and creditors, more information about the
company’s financial performance.
Financial statements are the main source of financial information for most decision makers.
That is why financial accounting and reporting places such a high emphasis on the accuracy,
reliability and relevance of the information on these financial statements.
This particular summary report that shows how a firm has used the funds entrusted to it by its
shareholders (stockholders) and lenders, and what is its current financial position. The three
basic financial statements are:
(1) Balance sheet, also referred to as a statement of financial position, which shows firm’s
assets, liabilities, and net worth on a stated date.
(2) Income statement (also called profit & loss account), a statement of comprehensive income,
statement of revenue & expense, P&L or profit and loss report, which shows how the net
income of the firm is arrived at over a stated period of time.
(3) Cash flow statement which shows the inflows and outflows of cash caused by the firm’s
activities during a stated period. Also called business financials.
pg. 4
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Objectives of financial statements:
The main objective of financial statements is to provide detailed information about the financial
performance, position and any changes in financial position of an enterprise that is useful to a
wide range of individuals and corporations in making economic decisions. Financial statements
should be understandable, reliable, relevant and comparative. Assets, liabilities, equity, income
and expenses are directly related to an organization’s financial position.
Financial statements are intended to be understood by readers who have adequate knowledge
of business and economic activities and accounting and who are capable and willing to study
the information provided diligently.
Two significant factors of financial statements indicators

1. Profitability
2. Financial Soundness
Analysis and interpretation of financial statements therefore refers to such a treatment of

the information contained in the income statement and the balance sheet so as to afford full
diagnosis of the profitability and financial soundness of the business.
The term “analysis” means methodical classification of the data given in the financial
statements. The term “interpretation” means explaining the meaning and significance of the
data so simplified.
pg. 5
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Objectives of Financial Statement Analysis
• Using resources most efficiently & effectively.
• Debt servicing ability & fulfilment of long-term obligations.
• Financial risk.
• Business risk.
• Earnings.
• Profit retention policy.
• Dividend obligations.
• Predicting growth rates of income, revenue and Bankruptcy.
• Projecting trends for decision making.
• Evaluation of past performance.
pg. 6
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Types of financial Analysis
On the basis of material used
• External analysis – This analysis done by outsiders who do not have access to the internal
accounts of business firm. These include investors, financial institution, credit agencies,
Government agencies, creditors etc. These persons mainly depend upon, the published
financial statements. Their analysis serves only a limited purpose. The position of this analysis
has improved in recent times on account of increased governmental control over companies
and governmental regulations requiring more detailed disclosures of information by the
companies in their financial statements.
• Internal analysis- This analysis done by persons who have access to internal accounts of
business firm. These include executives, manager, supervisor etc. – by officers appointed by
Government or courts in legal litigations etc. under power vested in them. The analysis in
done depending upon the objective to be active depending upon the objective to be achieved
through this analysis.
pg. 7
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On the basis of modus operandi
• Horizontal analysis- It refers to comparison of financial data of a firm horizontally over a

number of columns for several years. This particular analysis statement usually contains figures
for two or more years and the changes are mainly shown regarding each available item from
the base year usually in the form of percentile such as analysis given the management
considerable insight into levels and areas of strength and weakness. Since this type of analysis
is based on the date from year to year rather than on one date, it is also termed as
‘Dynamic Analysis’.
• Vertical Analysis- Vertical analysis refer to the study of relationship of various item in the
financial statement of one accounting period be selecting a base figure from the same year
statement. Quantitative relationships among various items in statements on a particular date
and is compared with inter firm comparisons or inter department comparisons. Since this
analysis depends on the data for one period, is nor very conductive financial position. It is also
called ‘Static Analysis’ as it frequently used to ratios developed on one date or for one
accounting period.
Parties Interested/ Users of Financial Analysis

• Investors
• Management
• Trade Creditors
• Lenders
• Suppliers
• Stock Exchange
• Tax Authority
• Researcher
• Employees
• Government and their Agencies
pg. 8
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Investors:
The Investors are invested their money in the firms shares, are not concerned about the firms
earnings. They reside more confidence in those organizations that show commendable steady
growth in revenue earnings. As such, they concentrate on the analysis of the firm’s present and
future estimated profitability. They have also shown interest in the firm’s financial structure to
the extent it influences the firms earning ability and risk.
Management:
Management of the firm would focus in every aspect of the financial statement analysis. It is
their overall responsibility to see that the available resources of the firm are used effectively
and efficiently and that the firm’s condition is sound.
Trade Creditors:
The trade creditors are expected to be paid in a short-term solvency of the concern. The current
ratio and acid test ratio will enable the creditors to assets the short-term solvency position of
the concern.
Government:
The financial statements are used to assess tax liability of business enterprise by the
Government Authorities. These statements enable the authority to find out whether the
business is complying with various regulations laid down.
Others:
Trade associations, stock exchange and public at may also analyze the financial statements to
judge the financial position of different concerns.
pg. 9
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TOOLS AND TECHNIQUES OF FINANCIAL STATEMENT

ANALYSIS
• COMPARATIVE STATEMENT.
• COMMON SIZE STATEMENT.
• RATIO ANALYSIS
• TREND ANALYSIS.
• CASH FLOW ANALYSIS.
• FUNDS FLOW ANALYSIS.
• COST-VOLUME-PROFIT ANALYSIS.
pg. 10
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pg. 11
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COMPARATIVE FINANCIAL STATEMENT
• Comparative financial statements comparison between financial statement of a business at

different periods of time.
• Comparative financial statements show financial position of the firm at different

periods.
• Current year’s statement is compared with previous year’s statements.
• It enables identification of weakness & strength & applying corrective measures.
• Two financial statements i.e. balance sheet & Income statement are prepared in
comparative form for undertaking analysis.
Comparative statement procedure:
• Absolute figures (rupee amount) are recorded of both the year.
• Absolute data in terms percentage are calculated.
• Changes in absolute figures i.e. increase or decreases in absolute figs. are calculated.
• Increase or decrease in terms of percentage is calculated.
• Finally the interpretation is completed.
pg. 12
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Comparative balance sheet
A comparative balance sheet is a statement that shows the financial position of an

organization over different periods for which comparison is made or required. ... In
preparing a comparative balance sheet, the items are placed in rows, and years and
amounts are shown in the columns.
• The comparative balance sheet is a statement that shows different assets and liabilities
of the firm on different time period to make comparison of balances from one period to
another.
• It has two columns for the data of original balance sheets. A third column is used to
show change in figures. The fourth column may be added for giving percentages of
change.
• While interpreting comparative balance sheet the interpreter is expected to study the
following aspects:
- Current financial and liquidity position
- Profitability of the concern
- Long term financial position
• For the study of current financial position or liquidity position of a concern, a person
should examine the net working capital in both the years. Working capital is the excess
of current assets over current liabilities.
• For studying the long-term financial position of the concern, one should examine the
changes un fixed assets, long term liabilities and capital
• The next aspect to be studied in a comparative balance sheet is the profitability of the
concern. The study of change in profit will help the interpreter to observe whether the
profitability has improved or not.
• After studying various assets and liabilities, an opinion should be formed about the
financial position of the concern.
pg. 13
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Comparative Income statement
• Analysis & Interpretation of income statement will involve the following:
• The change in sales should be compared with the change in cost of goods sold.
• To study the operating profits.
• The change in net profit is calculated that will give an idea about the overall profitability of
the concern.
Merits:
1) Indicate the Direction of Financial Position
2) Reveal Nature & Trend:
3) Identifying Trouble Spots:
Disadvantages:
1) Misleading picture, if consistency in accounting principle not followed.
2) Constant change in price level tender accounting statement useless for comparison.
3) Inter firm comparison is useless, unless all the firms are of the same age, size and follow
the same principles.
4) If there exists any abnormal period between 2 successive accounting periods then it
will prove to be a pointless analysis.
pg. 14
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Common size statements
A term applied to financial statements that use 100 percent of one category as the basis for
determining the proportion that other statement items represent. Net sales are used as the basis
figure for Income Statements, total assets for Balance Sheets. Since the total always sums to
100 percent, the statements prepared in this manner are referred to as “common-size.” This
form of comparative statement enables the analyst to see at a glance the Balance Sheet trends
and the proportionate changes taking place in the individual accounts form one statement period
to the next.
• The common size statements (balance sheet and income statement) are shown in analytical
percentages.
• The figures of these statements are shown as percentages of total assets, total liabilities and
total sales respectively. The total assets are taken as 100 and different assets are expressed as
a percentage of the total. Similarly, various liabilities are taken as a part of total liabilities.
• A statement where balance sheet items are expressed in the ratio of each asset to total assets
and the ratio of each liability is expressed in the ratio of total liabilities is called common size
balance sheet.
• Thus, the common size statement may be prepared in the following way.
o The total assets or liabilities are taken as 100
o The individual assets are expressed as a percentage of total assets i.e., 100 and different
liabilities are calculated in relation to total liabilities.
• Common size income statement
• The item in the income statements can be shown as a percentage of sales to show how the
relation of each item to sales.
pg. 15
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Advantages of Common Size Statement
1) It reveals Sources and Application of Funds in a nutshell which help in taking decision.
(2) If common size statements of 2 or more years are compared it indicate the changing
proportion of various components of Assets, Liabilities, Cost, Net Sale & Profit.
(3) When Inter Firm Comparison is made with the help of Common size statement it helps
in doing corporate evaluation and Ranking.
Disadvantages of Common Size Statement
(1) No Established Standard Proportion:
Common Size Statements are regarded as useless as there is no established standard proportion
of an asset to the total asset or an item of expense to the net sales.
(2) Consistency Required: -
If Financial Statement of a Particular business organization are not prepared year after year on
a consistent basis comparative study of common size statement will be misleading
pg. 16
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Trend Analysis
• It determines the direction upwards or downwards.
• Under this analysis the values of an item in different years is expressed in relation to the value
in one year called the base year.
• Taking the value of the item in the base year to be equal to 100
• The values of the item in different years are expressed as percentages to this value.
Advantages:
(1) Trend % indicates the increase or decrease with the magnitude of change in % which
is more effective than absolute data.
Ex: If we say profit increases by Rs. 50,000/- it will be meaningless unless we find by what %
the profit has increased.
(2) Facilitate efficient comparative study of financial performance.
Limitations:
(1) It will give a misleading picture if consistency in accounting principle is not followed.
(2) Constant change in price level renders accounting statement useless for comparison.
(3) During inflationary period the data over a period of time become incomparable, unless
the absolute rupee data is adjusted.
(4) There is always the danger of selecting the base year which may not be representative,
normal & typical.
(5) Trend % should be studied in relation with Absolute figure otherwise it gives
misleading picture. For ex. No. of student where 2, the next year they increased to 4. Now
trend % show 100% increase but absolutely we get clear picture than trend %.
pg. 17
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Ratio Analysis
A ratio is simple arithmetical expression of the relationship of one number to another. It may
be defined as the indicated quotient of two mathematical expressions.
• Ratio- A simple arithmetical relationship of one number to another.
• Wixom, Kell and Bedford- Ratios are an expression of the quantitative relationship between
two numbers.
• Kohler- A ratio is a relation of the amount A to another amount B, expressed as the ratio a-b;
a: b or simple fraction integer decimal fraction or percentage.
• Ratios are the pointer of financial strength, soundness, position or weakness of an enterprise.
• Ratio-Analysis- It is a technique of analysis and interpretation of financial statement. It is the

process of establishing and interpreting various ratios for helping in making certain decision.
Any Ratios have the features as below:
1. Provide a method of standardization
2. More important - provide a profile of firm’s economic characteristics and competitive

strategies.
• Although extremely valuable as analytical tools, financial ratios also have limitations. They
can serve as screening devices, indicate areas of potential strength or weakness, and reveal
matters that need further investigation.
• Should be used in combinations with other elements of financial analysis.
• There is no one definitive set of key ratios; there is no uniform definition for all ratios; and
there is no standard that should be met for each ratio.
• There are no "rules of thumb" that apply to the interpretation of financial ratios.
pg. 18
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Steps involved in Ratio Analysis.
• Selection of relevant data from the financial statement depending upon the objective of the
analysis.
• Calculation of the appropriate ratio of the data.
• Comparison of calculated ratio.
• Interpretation of ratios.
• Interpretation of ratio involves following
o Single absolute ratios.
o Group of ratios.
o Historical comparison.
o Projected ratio.
o Inter-firm comparison.
Classification of Ratios
• Traditional classification.
• Functional classification.
• Significant ratio.
• User based classification.
• Traditional classification
a) Balance sheet ratios- Current ratio, Liquid ratio, Absolute liquid ratio, Debt equity ratio,
proprietary ratio, Capital gearing ratio, Asset proprietary ratio, capital inventory to working
capital ratio. Ratio of current asset to fixed asset.
b) P & L A/c ratio- Gross profit ratio, operating ratio, Operating profit ratio, Net profit ratio,
Expenses ratio, Interest coverage ratio.
c) Composite/Mixed/Intra Statement ratio- Stock turnover ratio, Debtor turnover ratio, Fixed
Asset Turnover ratio, Return on equity. Return on shareholder fund, Return on capital
employed, capital turnover ratio, working capital turnover ratio. Return on total resources,
Total asset turnover ratio.
pg. 19
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• Functional Classification.
a) Liquidity ratios - firm's ability to meet cash needs as they arise;
b) Leverage ratio: the extent of a firm's financing with debt relative to equity and its ability to
cover fixed charges
c) Activity Ratio: the liquidity of specific assets and the efficiency of managing assets
d) Profitability Ratio: the overall performance of the firm and its efficiency in managing
investment (assets, equity, capital).
e) Market Ratio: The performance of the company in comparison with terms of the market
prices of the shares of the company influenced by demand and supply.
A. Liquidity ratios
Liquidity ratios are designed to measure the extent to which our short-term, or liquid, assets
exist to cover our short-term obligations. Liquidity refers to a firm’s ability to meet its
obligations in the short term, usually one year. These ratios are based on the relationship
between current assets and current liabilities. The important ratios are current ratio, acid test
ratio and cash ratio.
Current Ratio: Gauges how able a business is to pay current liabilities by using current
assets only. Also called as, the working capital ratio. A general rule of thumb for the current
ratio is 2 to 1 (or 2:1, or 2/1). However, an industry average may be a better standard than
this rule of thumb. The actual quality and management of assets must also be considered.
Current Ratio = Current assets / Current liabilities.
pg. 20
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Quick Ratio: This ratio recognizes that some current assets are more liquid than others. While the book defines
the quick ratio’s numerator as being the Current Assets less Inventories, the general definition used in practice
excludes other current assets that are not liquid in nature, such as prepaid expenses. The idea behind excluding
inventories is twofold:
first, inventories are generally illiquid and can only be converted into cash by selling at steep
discounts. Secondly, most companies sell inventories on credit, so they become an account
receivable which must then be collected. By excluding inventories, the quick ratio is
therefore recognizing the fact that they are one step further removed from becoming cash
than other current assets.
Focuses on immediate liquidity (i.e., cash, accounts receivable, etc.) but specifically ignores
inventory. Also called the acid test ratio, it indicates the extent to which you could pay
current liabilities without relying on the sale of inventory. Quick assets are highly liquid --
Those immediately convertible to cash. A rule of thumb states that, generally, your ratio
should be 1 to 1 (or 1:1, or 1/1).
Quick Ratio = Cash + Marketable securities + Receivable
Current liabilities
pg. 21
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Cash Ratio: The cash ratio is the ratio of a company’s total cash and cash equivalents to its
current liabilities. The metric calculates a company’s ability to repay its short term debt.
This information is useful to creditors when deciding how much debt, if any, they would be
willing to extend to the asking party. The cash ratio is generally a more conservative look
at a company’s ability to cover its liabilities than many other liquidity ratios because other
assets, including accounts receivable, are left out of the question.
Cash Ratio = Cash + Marketable securities
Current liabilities
pg. 22
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B. Leverage ratios
Companies rely on a mixture of owner’s equity and Debt to finance their operations. A
leverage ratio is any one of several financial measurements that look at how much capital
comes in the form of debt (loans) or assesses the ability of a company to meet its financial
obligations.
Debt/Asset Ratio: The Debt-to-Assets Ratio looks at how much of a company’s assets are
financed with debt; i.e., another people’s money. A variation on the Debt -to-Asset Ratio
that is more commonly used in practice is the Debt-to-Equity Ratio which simply expresses
the debt as a percentage of equity rather than total assets.
Debt/Asset Ratio = Total Debt/Total Asset
Debt Equity Ratio: The D/E ratio indicates how much debt a company is using to finance its
assets relative to the amount of value represented in shareholders’ equity.
Debt Equity Ratio=Total Debt/Total Shareholder’s Equity
Current Liabilities to Net worth: Net worth is also called as shareholders equity which is
calculated by deducting the total liabilities from the total assets of the company.
Current Liabilities to Net worth = Total Current Liabilities/Net worth
Capitalization Ratio: Capitalization Ratio measures the debt component of the company’s
capital structure, or capitalization. That is, the sum of long-term debt liabilities and
shareholders’ equity to support a company’s operations and growth. The relationship is
between the Long-term debt and shareholder’s equity.
Capitalization Ratio = Long Term Debt/Long Term Capital
pg. 23
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C. Asset Management (Utilization) Ratios/Activity Ratios
Evaluates how well the company manages its assets. Besides determining the value of the
company’s assets, you should also analyze how effectively the company employs its assets.
Inventory Turnover Ratio: Identifies the average length of time it takes the inventory to turn
over. As with inventory turnover, fewer days mean that inventory is being sold more quickly.
Inventory Turnover Ratio is a measure of how efficiently a company can control its
merchandise, so it is important to have a high turn. This shows the company can efficiently sell
the inventory it buys.
Inventory Turnover = Cost of Goods Sold/ Inventory
For inventory, average inventory is used instead of ending inventory because many companies’
merchandise fluctuates greatly throughout the year.
Average Age of Inventory Average: The average age of inventory is the average no of days
it takes for a company to sell off inventory.
The formula to calculate the Age of Inventory = Inventory/ (COGS/365).
Average Collection Period: The average collection period is the approximate amount of time
that it takes for a business to receive payments owed in terms of accounts receivable. Average
Period= Debtors + Bills Receivables/ Credit Sales per Day * 360 days
Credit Sales per day= Net Credit Sales of the year/365
Average Collection Period (Days’ Sales Outstanding) = Accounts Receivable/ (Sales/365)
Fixed Assets Turnover Ratio: The final major category of assets, particularly manufacturing
firms, is that of Property, Plant & Equipment, or Fixed Assets. The Fixed Asset Turnover ratio
looks at the amount of productive equipment that a firm has relative to the amount of sales that
it is generating. This ratio specifically measures how able a company is to generate net sales
from fixed-asset investments.
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Fixed Assets Turnover Ratio= Net Sales/ Net Fixed Assets

Here, Net Fixed Assets = Fixed Assets – Depreciation
Note: Net Fixed Assets does not include Intangibles
Total Asset Turnover Ratio: Asset turnover ratio is the ratio of the value of a
company’s sales or revenues generated relative to the value of its assets.
Total Asset Turnover = Sales/Average Total Asset
Average Age of Payables: Shows how many times in one accounting period the company
turns over (repays) its accounts payable to creditors. A higher number indicates either that the
business has decided to hold on to its money longer, or that it is having greater difficulty paying
creditors. Also known as accounts Payable turnover ratio is calculated by taking the total
purchases made from suppliers, or cost of sales, and dividing it by the average accounts payable
amount during the same period. It measures the no of days that a company takes to pay its
creditors.
Average Age of Payables = Accounts Payable/ (COGS/365)
D. Profitability Ratios
It measures the company’s ability to generate a return on its resources. Use the following four
ratios to help you answer the question, “Is my company as profitable as it should be?” An
increase in the ratios is viewed as a positive trend. Profitability Ratios are a class of financial
metrics that are used to assess a business’s ability to generate earnings compared to its expenses
and other relevant costs incurred during a specific period of time.
pg. 25
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Gross Profit Margin: Indicates how well the company can generate a return at the gross profit
level. It addresses three areas: inventory control, pricing, and production efficiency. It is the
profitability ratio that shows the relationship between gross profit and total net sales revenue.
It is a popular tool to evaluate the operational performance of the business
Gross Profit Ratio= Gross Profit / Net Sales * 100
Operating Profit Ratio: Operating Profit shows the profit derived from Operating Activities, these
are the main course of business and it estimates the amount generated from the main business.
Operating Profit Margin= Operating Income/Sales
Operating Income in this case is EBIT after Unusual Expense
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Net Profit Ratio: Shows how much net profit is derived from every dollar of total sales. It
indicates how well the business has managed its operating expenses. It also can indicate
whether the business is generating enough sales volume to cover minimum fixed costs and still
leave an acceptable profit. Measure of overall profitability after all items included (revenues,
expenses, tax, interest, etc.). The profit margin ratio is a measure of a firm's ability to control
the level of expenses relative to revenues generated.
Net Profit Margin= Net Income/Sales*100.
E. Market Ratios
The book-to-market ratio is a ratio used to find the value of a company by comparing the book
value of a firm to its market value. Book value is calculated by looking at the firm’s historical
cost, or accounting value. Market value is determined in the stock market through its market
capitalization
Earnings per Share: is the portion of a company’s profit allocated to each outstanding share
of common stock. Earnings per share, serves as an indicator of a company’s profitability.
Earnings per Share (Basic) = Net Income/ Total No. of Shares Outstanding.
Price Earnings ratio: Also known as PE Ratio is one of the most widely used tools for stock
selection. It is calculated by dividing the current market price of the stock by its earnings per
share (EPS). It shows the sum of money you are ready to pay for each dollar/rupee worth of
the earnings of the company.
Price/Earnings Ratio = Market Price per Share/ Earning per Share
• Significant Ratio.
a) Primary Ratio
b) Secondary Ratio.
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Based on who uses the ratios are listed as follows:
 User based classification
FOR SHORT TERM CREDITORS
(1) Current Ratio
(2) Quick / Liquid Ratio / Acid Test Ratio
(3) Super Quick Ratio
(4) Stock: Working Capital Ratio
(5) Stock Turnover Ratio
(6) Stock Holding Period
(7) Creditor Payment Period
(8) Creditor Turnover Ratio
FOR LONG TERM CREDITORS
1. Capital Gearing Ratio
2. Debit: Equity Ratio
3. Proprietary Ratio
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4. Long Term Borrowing: Total Asset Ratio
5. Fixed Asset: Net worth
6. Interest Coverage Ratio
7. Debt Service Coverage Ratio
FOR SHARE HOLDERS
1. Return on Investment (ROI) or Return on Capital Employed (ROCE)
2. Return on Proprietary / Shareholder fund
3. Return on Equity Shareholder fund
4. Earnings per share
5. Dividend per share
6. Dividend pay-out Ratio
7. Price Earnings Ratio
8. Preference Dividend Cover
9. Equity Dividend Cover
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FOR MANAGEMENT
1. Return on Investment (ROI) or Return on Capital Employed (ROCE)
2. Debtor Turnover Ratio
3. Debtor Collection Period
4. Creditor Payment period
5. Creditor Turnover Ratio
6. Stock Turnover Ratio
7. Stock Holding Period
8. Gross Profit Ratio
9. Net Profit Ratio
10. Operating Net Profit Ratio
11. Operating Ratio
12. Proprietary Ratio
13. Fixed Asset: Net Worth
14. Long Term Borrowing: Total Assets
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Advantages of Ratio Analysis:
1. It helps in analysis of the situation i.e. analysis on the financial situation and performance.
2. Inter-firm and Intra-firm comparison is both possible on the basis of accounting ratio
3. Accounting Ratio not only indicates the present position, but they also indicate the cause
leading up to the position of a large extent
4. It helps in obtaining best result when ratios for a number of years are put in tabular form so
that the figure for one year can be easily compared with those of other year
5. It indicates the trend of the change, which helps in preparation of estimates for the future.
6. They provide simplicity to the complex accounting information presented by the financial
statements
7. They are very helpful to outsiders as well as for internal management
8. It is very helpful to internal managements, discharge of the basic managerial functions.
9. It also helps in planning, policy making & controlling the activities.
10. They are helpful in establishing the standard casting system.
Limitation to Ratio Analysis
1. Ratio provides only guidelines to the management they are only the means. However, they
scratch surfaces and raise question. The limitation of the ratio may force the management to
have detailed investigation of the situation under question.
2. single accounting ratio is not useful at all unless it is studied with other accounting ratios
3. They are based only on the quantitative information. Hence, qualitative information puts limit
on the ratios
4. Ratios are subject to arithmetical accuracy of the financial statements. Moreover, financial
statement also includes estimated date like provision for depreciation, bad and doubtful debts
etc. hence, results revealed by ratios are subject to such estimates.
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5. Ratios are computed on the basis of financial statements which are historical in nature.
6. Knowledge of ratios only is meaningless unless it is also found how it is made up.
7. Lack of homogeneity of data, personal judgment lack of consistency etc. is the factors which
limit the conclusion to be derived on the basis of accounting ratios .
pg. 32
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CHAPTER - 2
RESEARCH
METHODOLOGY
pg. 33
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2.1. Introduction:
Financial Statement Analysis: Financial Statement Analysis is the process of examining

relationships among financial statement elements and making comparisons with relevant
information. It is a tool used by investors and creditors, financial analysts, and others in the
decision-making process related to stocks, bonds and other financial instruments. It is the great
understanding of the balance sheet & profit and loss account to understand the financial aspects
of the business.
Ratio Analysis: Ratio Analysis is a form of Financial Statement Analysis that is used to obtain
a quick indication of a firm's financial performance in several key areas. The ratios are
categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset Management
Ratios, Profitability Ratios, and Market Value Ratios.
Ratio Analysis as a tool possesses several important features. The data, which are provided
by financial statements, are readily available. The computation of ratios facilitates the
comparison of firms which differ in size. Ratios can be used to compare a firm's financial
performance with industry averages. In addition, ratios can be used in a form of tre nd
analysis to identify areas where performance has improved or deteriorated over time. Other
methods include Vertical, horizontal and other methods.
2.2 Statement of Problem:
The statement of the problem deals with the details of the project which is understanding how
the company performs in terms of finance, management of funds, inventory and providing the
investors, customers, creditors and all those interested parties a satisfactory return.
This study emphasis on the profitability, liquidity, solvency ratios of the company to know
the efficiency of usage of all available resources.
2.3. Need of the study:
The study has great significance and provides benefits to various parties whom directly or
indirectly interact with the company.
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It is beneficial to management of the company by providing crystal clear picture regarding

important aspects like liquidity, leverage, activity and profitability.
The study is also beneficial to employees and offers motivation by showing how actively they
are contributing for company’s growth.
The investors who are interested in investing in the company’s shares will also get benefited
by going through the study and can easily take a decision whether to invest or not to invest in
the company’s shares.
2.4 Liquidity and Profitability:
Liquidity and profitability are two important demanders in determining the soundness of a
company.
Liquidity means ability of a firm to meet its current obligations when they become due for
payment. It has two aspects – quantitative and qualitative. Qualitative aspect implies the
quantum of current assets a firm possesses irrespective of making any difference b/w various
types of current assets such as inventories, cash and so on. Qualitative aspect reforms the
quality of current in terms of their realization in to cash considering time dimension involved
in maturing different components of current assets.
Profitability is the capacity of earning profits and due most important measure of performance of
affirms. It is generally assumed that there is negative relationship b/w liquidity and profitability i.e.
higher liquidity results in lower profitability and vice-versa
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2.5 Objectives of the study:
• To study the various ratios of the company.

• To find the profitability.
• To know the percentage of improvement of profit
• To provide insight to the investors to invest in the shares of the company.
• To find the current financial position of the company.
2.6 Scope of the Study:
• Since the decision regarding Ratio Analysis are of an continuous nature not one time
decision, the scope of the study is geared towards identifying important areas of control
and to establish model for better control of the various components of the study would
also attempt to identify the various sources available.
2.7 Summary of the Project:
This research project is undertaken to understand the various ratios of Oracle Corp. and to
understand the profitability, liquidity, solvency and market value. Its main objective is to
provide all its creditors, investors, customers, analysts with the right information which they
might depend on. The ratios of various types are provided in graphs and tables to understand
the company’s performance better.
2.8 Research Methodology:
• Primary Data Collection method:

Primary Data refers to direct or face to face interviews or though questionnaires.
Primary data will be collected through personal interview with the staffs of the
company.
• Secondary Data collection method:
Secondary data is collected with the help of various sources which includes data from
records, journals, annual report of the organization and with the help of internet.
pg. 36
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2.9 Limitations:
• Time Constraint: The research done is within a period of 2-3months so there might
not be extensive study of the company.
• The data used is only limited to the past 5 years and does not consider the previous
years of performance of the organization.
• The study is only based on Secondary data available, the financial reports and the
internet.
• The company policy of confidentiality has been a major constraint as thorough
research couldn’t be possible.
• The amount is rounded off to the nearest billions and the digits are rounded to
2decimal places, so the data may not be very precise.
pg. 37
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CHAPTER -
3
COMPANY
PROFILE
pg. 38
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Oracle Corporation is a multinational computer technology corporation, headquartered in

Redwood Shores, California. The company specializes primarily in developing and marketing
database software and technology, cloud engineered systems and enterprise software products
— particularly its own brands of database management systems. In 2016 Oracle was the
second-largest software maker by revenue, after Microsoft.
pg. 39
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The company also develops and builds tools for database development and systems of middle-
tier software, enterprise resource planning (ERP) software, customer relationship management
(CRM) software and supply chain management (SCM) software.
Larry Ellison
pg. 40
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Larry Ellison co-founded Oracle Corporation in 1977 with Bob Miner and Ed Oates under the
name Software Development Laboratories (SDL). Ellison took inspiration from the 1970 paper
written by Edgar F. Codd on relational database management systems (RDBMS) named "A
Relational Model of Data for Large Shared Data Banks." He heard about the IBM System R
database from an article in the IBM Research Journal provided by Oates. Also derived from
Codd's theories, Ellison wanted to make Oracle's product compatible with System R, but failed
to do so as IBM kept the error codes for their DBMS a secret. SDL changed its name to
Relational Software, Inc. (RSI) in 1979, then again to Oracle Systems Corporation in 1982, to
align itself more closely with its flagship product Oracle Database. At this stage Bob Miner
served as the company's senior programmer. In 1995, Oracle Systems Corporation changed its
name to Oracle Corporation, officially named Oracle, but sometimes referred to as Oracle
Corporation, the name of the holding company. Part of Oracle Corporation's early success arose
from using the C programming language to implement its products. This eased porting to
different operating systems (most of which support C).
The industry that Oracle falls under is Enterprise software and Cloud computing. Net sales in
fiscal year 2016 were approximately $37.05 billion. Oracle Corp trades on the New York Stock
exchange under the symbol NYSE: ORCL.
With more than 420,000 customers and deployments in more than 145 countries, Oracle offers
a comprehensive and fully integrated stack of cloud applications, platform services, and
engineered systems.
EMPOWERING AND ACCELERATING THE MODERN

BUSINESS.
The workforce is increasingly mobile. Customers are social and digital natives. Security
has never been more paramount. To meet these shifting market demands, businesses
must accelerate their digital transformation— simplify operations, speed innovation,
and hone their competitive edge.
Oracle offers an integrated array of applications, databases, servers, storage, and cloud
technologies to empower modern business. For most companies, flexibility is critical.
pg. 30
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Oracle provides a wide choice of software, systems, and cloud deployment models—
including public, on-premises, and hybrid clouds—to ensure that technology flexes to
the unique needs of a business. Oracle Cloud is a complete, integrated stack of platform,
infrastructure, and application services. With advanced scalability and security, Oracle
Cloud enables technical agility across the enterprise, connects people to information for
clearer insights, and fosters efficiency through simplified workflows. More than
420,000 customers across 145 countries have harnessed Oracle technology to accelerate
their digital transformation.
ORACLE CLOUD SOLUTIONS Modern cloud services help companies seize new
business opportunities and innovate faster. Oracle delivers the most comprehensive
portfolio of integrated cloud solutions for business, IT, and development needs,
including software as a service (SaaS), platform as a service (PaaS), infrastructure as a
service (IaaS), and data as a service (DaaS). Oracle Cloud helps businesses offload IT
management so that they can focus on their priorities. ORACLE DATABASE Designed
for cloud computing, the world’s #1 database enables the consolidation and
management of databases as cloud services. Companies can accelerate analytical
performance—while achieving new levels of efficiency and availability. Oracle
Database can be rapidly provisioned and ready to use in minutes.
pg. 31
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With just a few clicks, customers can set up new database instances in a complete development
environment. Best of all, there are no application changes when customers move their legacy
databases to Oracle’s secure and optimized cloud platform. MySQL is the world’s most popular
open-source database, enabling cost-effective delivery of reliable, high-performance, and
scalable web -based and embedded database applications. ORACLE MIDDLEWARE Oracle’s
integrated middleware platform for the enterprise and the cloud enables companies to create
and run agile, intelligent business applications while optimizing IT efficiency through full
utilization of modern hardware and software architectures.
ORACLE APPLICATIONS Companies of all sizes rely on Oracle’s complete, modern, and
secure portfolio of enterprise and industry applications to connect the entire organization and
provide data-driven intelligence. Oracle offers maximum personalization and choice, including
SaaS applications for customer experience, enterprise performance management, enterprise
resource planning, human capital management, supply chain management, and more. Oracle’s
enterprise solutions support all types of cloud scenarios, including public, private, and hybrid
clouds.
ORACLE CORPORATION • US$37 billion total GA AP revenue in FY 2016 • 420,000

customers • 310,000 Oracle Database customers • 120,000 Oracle Fusion Middleware
pg. 32
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customers • 110,000 Oracle Applications customers • 6,000 engineered systems customers •

More than 25,000 partners worldwide • More than 135,000 employees, including: - 40,000
developers and engineers - 16,000 support personnel - 18,000 consulting experts • More than
3.1 million students supported annually in 110 countries
ORACLE ENGINEERED SYSTEMS Oracle’s integrated systems combine Oracle hardware

and software, engineered and optimized to work together to cut complexity and cost. This
results in extreme performance, easier deployment and upgrades, and more efficient systems
management.
ORACLE SERVERS Oracle’s enterprise servers deliver advanced security, high performance,
simplified management, and high availability at a low cost of ownership. The systems and
Oracle software are co-engineered for performance and provide built-in redundancy for
maximum uptime and continuous service. ORACLE STORAGE Oracle’s application-
engineered storage is designed to accelerate application performance, increase efficiency, and
improve management. These advanced storage solutions let enterprises simplify IT
environments, so they can operate more cost-effectively and be more responsive to dynamic
business needs.
ORACLE SERVICES Oracle services help companies optimize their technology investments
and resources. » Oracle Advanced Customer Support Services and Oracle Premier Support
deliver tailored, mission-critical support for complex IT environments to help maximize
performance, achieve higher availability, and reduce risk. » Oracle Consulting provides deep
expertise to help customers succeed with architecture, planning, implementation, upgrade, and
migration across the Oracle stack. » Oracle Financing offers expertise and insight—along with
proven processes and streamlined execution—to help organizations with their IT investments.
» Oracle Managed Cloud Services enable organizations to extend their Oracle investments into
the cloud with greater value, choice, and confidence. » Oracle University provides a world class
educational experience, with the best instructors in the industry. ORACLE MIDSIZE AND
SMB SOLUTIONS Oracle provides modern, complete, and simple-to -deploy cloud solutions
to organizations and companies of all sizes. Designed for fast time to benefit, these solutions
are available as fixed-scope, fixed-price offerings from expert partners and Oracle Consulting,
providing midsize and small-to-medium businesses (SMBs) with a strong foundation for
innovation and growth.
pg. 33
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DEVELOPER AND OTHER COMMUNITIES For developers, as well as customers, partners,

and other users, Oracle offers a wide range of ways to try Oracle technologies, get involved,
and be heard. Oracle’s global communities include Oracle Technology Network, Oracle
Partner Network, Java.net, and Oracle user groups. Oracle communities can also be found
online on Facebook, LinkedIn, Twitter, and more. ACCELER ATING DIGITAL
TRANSFORMATION Enterprises focused on accelerating their digital transformation can
reap the benefits of an empowered modern business. Simplifying processes brings greater
efficiency. Connecting people to information leads to insights that improve customer
experience. And enabling technical agility creates room for innovation that sharpens the
competitive edge.
Committed to Good Citizenship
Fostering a Culture of Corporate Social Responsibility for Oracle, corporate citizenship means
being responsible not only to our shareholders, but also to our stakeholders—those affected by
and with an interest in our activities—including employees, customers, partners, society, and
the environment.
Because a Healthy Planet Matters Oracle is committed to sustainable business practices that
help protect the environment.
66% more energy efficient than the industry average: Oracle’s Utah Compute Facility.
35% reduction in energy use at Oracle headquarters between 2000 and 2013
90% of Oracle’s suppliers have certifications such as ISO 14001 and strong track records of
environmental sustainability.
Committed to Responsible Business

Upholding High Standards The following core values comprise the foundation of our company
and are essential to Oracle ‘s business. • Integrity: Oracle employees will demonstrate honesty
and sound ethical behaviour in all business transactions, and personal integrity in all dealings
with others. • Mutual Respect: Oracle employees will consistently treat individuals with respect
and dignity. • Teamwork: Oracle employees work together as a team for the collective interests
of Oracle. • Communication: Oracle employees will share information effectively with each
other. We balance the need to share information alongside the need for confidentiality
regarding certain information. • Innovation: Oracle employees will seek innovative and
pg. 34
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creative approaches to problem-solving. • Customer Satisfaction: Oracle employees will
consistently treat customer satisfaction as a top priority. • Quality: Oracle employees will make
excellence and quality, a part of day-to-day work processes and seek continuous improvement
in all that they do. • Fairness: Oracle employees will commit to dealing fairly with customers,
suppliers, partners, and each other. • Compliance: Oracle employees will comply with all laws,
regulations, and Oracle policies that govern Oracle’s business and employees’ actions on behalf
of the company. • Ethics: Oracle employees will observe the standards that have been
established by Oracle and act ethically in their approach to business decisions. Code of Ethics
and Business Conduct Oracle’s Code of Ethics and Business Conduct articulates the behaviour
required of all employees globally. It addresses the following. • Compliance with Laws and
Regulations Oracle employees are expected to operate within the bounds of all laws,
regulations, and internal policies applicable to Oracle’s business, wherever we conduct it.
Where local laws are less restrictive than Oracle’s code, employees are obliged to comply with
the code, even if their conduct would be otherwise legal. However, if local laws are more
restrictive than Oracle’s code, employees must always, at a minimum, comply with those laws.
• Compliance and Ethics Program Oracle’s Compliance and Ethics Program, with the support
of Oracle’s executive management and Board of Directors, aims to ensure that all employees,
business partners, and suppliers adhere to high ethical business standards. With general
oversight from the General Counsel, the Compliance and Ethics Program is led globally by the
Chief Compliance and Ethics Officer.
• Integrity Helpline Oracle’s Integrity Helpline is available to employees, contractors, business

partners, and other stakeholders. It can be used to raise concerns or seek guidance on ethical
business practices relating to conflicts of interest, antitrust, auditing and accounting, insider
trading, political contributions, use of confidential information, export controls, immigration,
general commercial or government contracting, discrimination or harassment, workplace
violence, and a variety of other topics. • Business Conduct Oracle employees are obliged to
conduct internal and external business fairly and ethically. • Relationships Oracle employees
are expected to interact respectfully with each other, our customers, partners, suppliers, and
host communities. We expect our partners and suppliers to adhere to the standards of the Oracle
Partner Code of Conduct and Business Ethics and the Oracle Supplier Code of Ethics and
Business Conduct, respectively. Further, we require our partners and suppliers to comply with
all applicable laws and regulations and to ensure that all goods and services provided by them
pg. 35
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conform to all applicable legal standards. To learn more about corporate governance at Oracle,
please visit our Investor Relations website.
Compliance, Ethics, and Business Conduct Curriculum
To help employees understand and uphold the code, Oracle offers online courses, including the
following.
Anticorruption and Foreign Corrupt Practices Act: Trains employees to conduct business
ethically and in accordance with Oracle policy and the law.
Ethics and Business Conduct: Trains employees to apply the code in their daily work.
Sexual Harassment Awareness: Teaches employees to recognize and report actions that may
constitute sexual harassment Information Protection Awareness Teaches employees how to
protect information at Oracle and how to apply Oracle’s security and privacy policies and
practices to their jobs
Oracle Software Security Assurance: Explains to employees the processes to be followed
during product development and describes how to handle security vulnerability.
Insider Trading: Trains employees to fully comply with the applicable insider trading and
securities laws governing transactions in the securities of Oracle and other companies.
Employee Health and Safety Awareness: Trains employees to identify and understand
workplace hazards and to comply with all applicable health and safety laws, regulations, and
other requirements.
Promoting Data Privacy and Security
Safeguarding Information in a Connected World Oracle is committed to promoting data privacy

and security for our customers, partners, and employees around the world. Oracle enforces
corporate policies and practices designed to protect the personal information in its possession.
We provide data privacy and information protection awareness training to employees, which
defines how customer and employee information should be managed. We also work to raise
general public awareness by sponsoring a global Data Privacy Day and participating in privacy-
related seminars and events. Oracle is a licensee of the TRUST e Privacy Program, a leading
internet privacy certification seal, and we have self-certified our privacy practices in
accordance with the United States/ European Union Safe Harbour program.
pg. 36
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Oracle employer of choice

Oracle’s Global Workforce As a global market leader that delivers world -class products and
services, Oracle is an employer of choice in the technology industry. The company fosters a
culture of innovation, excellence, and respect throughout its workforce of more than 122,000
employees. Learn about Oracle Careers. Oracle’s performance-oriented culture makes it an
attractive place to work, especially for people seeking to develop or support state-of-the-art
technology. Employment with Oracle offers a great deal, including • Competitive
compensation and benefits packages • Extensive professional development opportunities • The
opportunity to work for a company that conducts business in more than 145 countries •
Meaningful and pioneering projects that enable knowledge workers to innovate • A supportive
environment that fosters diversity, inclusion, and employee wellness • The opportunity to
telecommute and work flexible schedules, as appropriate • The opportunity to participate in
Oracle-supported volunteer projects and other community outreach initiatives
An Attractive Place to Work Oracle’s global workforce predominantly consists of full-time

employees who work more than 30 hours per week. Benefits packages for full-time employees
encompass a variety of options, including paid time off, access to healthcare, savings plans,
and an Employee Assistance Program (EAP). Employees who work part also receive benefits.
Oracle delivers its benefit programs at the country level, which means that they vary with local
market practices and requirements. For employees who are beginning to transition into
retirement, Oracle’s EAP offers counselling services. Depending on circumstances, Oracle also
often provides outplacement services that help employees find future employment in the event
that their positions are eliminated due to redundancies created by an acquisition or other
change.
Oracle’s Diamond Members

• Accenture
• Deloitte
• Fujitsu
• Hewlett-Packard Enterprise
• IBM
• Infosys
• PricewaterhouseCoopers (PwC)
• TCS (Tata Consulting Services)
• Wipro Limited
pg. 37
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Accenture
With 20+ years of experience and more than 52,000 skilled Oracle consultants worldwide,
Accenture is uniquely qualified to provide strategy, implementation, upgrade, and outsourcing
solutions across the entire Oracle stack. Together, Accenture and Oracle bring the best
combination of products and services to help businesses and governments cost-effectively
accelerate delivery of their digital transformations.
Deloitte
pg. 38
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In February 2016, Deloitte became the first SI to earn Global Cloud Elite Status in Oracle’s
new cloud program.
Deloitte also earned top honours in the 2016 Oracle Excellence Awards for Cloud
Transformation Global Partner of the Year. The award recognizes innovation through cloud
technology, acknowledging Deloitte’s impact in the market and the importance of global
partner relationships. Additionally, Deloitte is a Diamond-level member of Oracle Partner
Network and has worked with Oracle for more than two decades. Deloitte member firms
throughout the world provide access to 17,300 professionals who collectively possess deep
industry and functional knowledge across Oracle’s full line of applications and technology.
Reflecting its commitment to client satisfaction, Deloitte has been consistently recognized by
analysts as a leader in Oracle implementation-related services.
pg. 39
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FUJITSU
Fujitsu, the world’s fourth-largest IT services provider, is recognized for its extensive expertise
in Oracle solutions across the entire stack—hardware, software and services. Oracle has global
strategic relationships with Fujitsu extending more than 30 years and across primary regions
including Japan, Asia Pacific, Europe, the UK, Middle East, Africa, North America, and India.
pg. 40
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HEWLETT-PACKARD ENTERPRISE
For over thirty years, Hewlett-Packard Enterprise and Oracle have been providing
complementary expertise to help address the business challenges of our joint customers. Today,
we continue to enhance our joint offerings and bring tangible benefits, while keeping our eyes
on the new IT reality—where all resources work together to deliver new levels of efficiency
that help you save time, energy, money and effort.
pg. 41
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IBM
For more than 25 years, IBM and Oracle have worked together to solve complex business
problems for our clients. Today, we're helping more than 140,000 organizations of all sizes
change the way they do business. Our joint clients benefit from the strength and stability of the
Oracle and IBM alliance, which offers more than 14,000 IBM consultants. IBM provides
Oracle solutions that mitigate risk, boost efficiency and lower total cost of ownership for its
clients.
pg. 413
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INFOSYS
Infosys is a global leader in consulting, technology, outsourcing and next-generation services.

We provide enterprises with strategic insights on what lies ahead. We help enterprises
transform and thrive in a changing world through strategic consulting, operational leadership,
and the co-creation of breakthrough solutions. As a proven partner focused on building
tomorrow's enterprise, Infosys enables clients in more than 50 countries to outperform the
competition and stay ahead of the innovation curve. Infosys and Oracle have forged a strong
alliance with a vision to help customers maximize benefits and achieve high performance
through business transformation.
pg. 44
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PricewaterhouseCoopers (PwC), Ltd.
PwC provides industry-focused assurance, tax, and advisory services that deliver value for our
clients. PwC has more than 184,000 people in 157 countries and is a Diamond-level partner
with more than 3,600 Oracle-dedicated professionals. PwC provides business advisory services
to some of the world’s largest organizations.
pg. 45
`
TCS (Tata Consulting Services)
Tata Consultancy Services is a leading IT services and consulting firm that first deployed
Oracle solutions in 1987. Today, TCS is an Oracle Diamond-level partner that designs,
implements, and maintains Oracle-enabled solutions for the world’s leading companies,
bringing speed, agility, and mobility to the modern enterprise.
pg. 46
`
Wipro Limited
Wipro is a global information technology, consulting, and outsourcing company with 150,000+
employees serving clients in 175+ cities across 6 continents. Wipro is focused on delivering
integrated, end-to-end Oracle solutions leveraging Oracle's applications and engineered
systems platforms, coupled with Wipro’s data centre capabilities across key industry verticals
including Banking, Communications, Utilities, Retail, Manufacturing, Healthcare, Engineering
and Construction. Wipro is committed to engineering a complete Oracle solution with a
strategic focus on Cloud HCM, Customer Experience, Oracle Engineered Systems and Industry
Solutions to enable its clients to do business better.
pg. 47
`
Hardware
• The Sun hardware range acquired by Oracle Corporation's purchase of Sun

Microsystems
• New Oracle SPARC T-series servers and M-series mainframes developed and released
after Sun acquisition
• Engineered systems: pre-engineered and pre-assembled hardware/software bundles for
enterprise use
• Exadata Database Machine – hardware/software integrated storage
• Exalogic Elastic Cloud – hardware/software integrated application server
• Exolytic In-Memory Machine – hardware/software integrated in-memory analytics

server
• Oracle Database Appliance
• Big Data Appliance – integrated map-reduce/big data solution
• SPARC Super Cluster T4-4 – a general purpose engineered system
pg. 48
`
Why Oracle
Speed Innovation Simplify IT

From data center operations to cloud applications, Oracle is eliminating the complexity that
stifles business innovation, engineering in speed, reliability, security, and manageability.
Oracle enables its customers—more than 420,000 of them across a wide variety of industries
in more than 145 countries—to dedicate more of their time and resources to adding value for
their users and customers.
Slogans
• "Information driven"
• For the Oracle Database: "Can't break it, can't break in" and "Unbreakable"
• Enabling the Information Age
• Enabling the Information Age Through Network Computing"
• As of 2008: "The Information Company"
• As of 2010: "Software. Hardware. Complete."
• As of late 2010: "Hardware and Software, Engineered to Work Together"
• As of mid-2016: "Integrated Cloud Applications and Platform Services"
pg. 49
`
Board of Directors
• Lawrence J. Ellison
Executive Chairman of the Board and Chief Technology Officer
• Safran A. Catz
Chief Executive Officer
pg. 50
`
• Jeffrey O. Henley
Vice Chairman of the Board
• Mark Hurd
Chief Executive Officer
• Jeffrey S. Berg
Chairman of Northsides Services, LLC
• Dr. Michael J. Buskin
Professor of Economics and Hoover Institution Senior Fellow at Stanford University
• Bruce R. Chizen
Senior Adviser to Permira Advisers and Independent Consultant
• George H. Comrade’s
Chairman of Akamai Technologies, Inc.
• Hector Garcia-Molina
Professor of Computer Science/Electrical Engineering at Stanford University
• Renée J. James
pg. 51
`
Operating Executive at The Carlyle Group
• Leon Panetta
Former Director of the Central Intelligence Agency and Former US Secretary of Defense
• Naomi O. Seligman
Senior Partner at Striker von Simson
pg. 52
`
Oracle Diversity and Inclusion
Oracle employees represent a variety of cultures, span four generations, practice many
religions, and live in large cities and small towns. This diversity allows us to examine our
business from a range of perspectives.
Oracle is an industry innovator because our employees know how to think outside the box.
Therefore, it makes no sense to limit ourselves or them by putting any of our employees,
applicants, partners, or even suppliers into a box based on their race, color, ethnicity, gender
identity, sexual orientation, socio-economic status, age, culture, religious and political beliefs,
physical challenges, or varying viewpoints and approaches.
That's why we accept, respect, and fully embrace the many dimensions of diversity —
diversity and inclusion is part of who we are. Oracle's business spans the globe, with
operations in 145 countries and 115,000 employees worldwide. The diversity of our U.S.
workforce reflects our customers, partners, suppliers, and the communities in which we live
and work.
Diversity and Inclusion at Oracle

The combination of diversity and inclusion is an Oracle business strategy that optimizes our
employees' performance, engagement, and productivity, which in turn increase our competitive
advantage. The multiple perspectives and experiences that our talented employees bring to their
work every day drive creativity, innovation, and effective decision - making. This enables us
to better anticipate and exceed our customers' changing requirements in a fast-paced global
economy and deliver more value to our stockholders.
Fostering an inclusive work environment makes us a stronger company and a better place to
work. Our focus is on recruiting, hiring, developing, retaining, and advancing the best and the
brightest talent around the world.
Oracle's Workforce
• Minority Employees: 37%
• Female Employees: 29%
• Minority Managers: 34%
• Female Managers: 25%

This data is specific to U.S.
pg. 53
`
Diversity Recruiting
Ideas and talent are universal, and so is our workforce. It’s how our differences come together
that make Oracle a world-class organization and innovator.
Oracle has offices in 145 countries, and we identify and recruit top local talent. For example,
Oracle works with more than 30 colleges and universities across the US to recruit the best new
talent.
Oracle Corporate Citizenship

The technology industry is critical to global progress and prosperity, and Oracle consistently
leverages our technology leadership to benefit society. We adhere to a focused strategy as we
manage our business, help customers to better run their own organizations, and contribute to
the betterment of our communities.
We continually refine business practices and employ state-of-the art technology to increase
efficiency, reduce excess, and create opportunity.
Please refer to the Oracle Corporate Citizenship Report for details about our work in
volunteering, giving, the environment, and more.
Media
Oracle Corporation produces and distributes the "Oracle Clear View" series of videos as part
of its marketing mix.
pg. 54
`
Events
Acquisition of Sun Microsystems
Main article: Sun acquisition by Oracle
On January 27, 2010, Oracle announced it had completed its acquisition of Sun
Microsystems— valued at more than $7 billion—a move that transformed Oracle from solely
a software company to a manufacturer of both software and hardware. The acquisition was
delayed for several months by the EU Commission because of concerns about MySQL but was
unconditionally approved in the end. This acquisition was important to some in the open source
community and to some other companies, as they feared Oracle might end Sun's traditional
support of opensource projects. Since the acquisition, Oracle has discontinued Open Solaris
and Star Office, and sued Google over their newly acquired Java patents from Sun. In
September 2011, U.S. State Department Embassy cables were leaked to Wikileaks. One cable
revealed that the U.S. pressured the E.U. to allow Oracle to acquire Sun.
pg. 55
`
Mark Hurd as President
On September 6, 2010, Oracle announced that former Hewlett-Packard CEO Mark Hurd was
to replace Charles Phillips as Oracle Co-President. Apparently, Phillips had wanted to leave
Oracle since December 2009. "Oracle is clearly capitalizing on this opportunity to get someone
strong from a top hardware company," said Forrester analyst James Staten. "In terms of how
this helps Oracle against IBM, there is reason to be optimistic."
Mark Hurd resigned from HP "after an investigation of his relationship with a female contractor
found he violated the company's business standards." HP said Hurd "didn't violate the
company's policy regarding sexual-harassment."
On September 7, 2010, HP announced a civil lawsuit against Mark Hurd "to protect HP's trade
secrets." On September 20, Oracle and HP published a joint press release announcing the
resolution of the lawsuit on confidential terms and reaffirming commitment to long-term
strategic partnership between the companies.
Offices
Oracle Corporation has its Overall headquarters on the San Francisco Peninsula in the Redwood
Shores area of Redwood City, adjacent to Belmont and near San Carlos Airport (IATA airport
code: SQL).
Oracle HQ stands on the former site of Marine World Africa USA, which moved from
Redwood Shores to Vallejo in 1986. Oracle Corporation originally leased two buildings on the
site, moving its finance and administration departments from the corporation's former
headquarters on Davis Drive, Belmont, California. Eventually, Oracle purchased the complex
and constructed a further four main buildings.
The distinctive Oracle Parkway buildings, nicknamed the Emerald City, served as sets for the
futuristic headquarters of the fictional company "North Am Robotics" in the Robin
pg. 56
`
Williams film Bicentennial Man (1999). The campus represented the headquarters of Cyberdyne
Systems in the movie Terminator Genisys (2016).
300 Oracle Parkway at Oracle Corporation headquarters in Redwood Shores, California
Oracle Aoyama Center Building, with Lexus International Gallery Aoyama pg. 53
`
Oracle HQ, with Oracle Plaza building in left foreground
The Oracle Conference Center at Oracle Corporation headquarters in

Redwood Shores, California
Fountain in the Oracle Lake, Redwood Shores pg.54

`
Oracle Corporation has a major business campus at Thames Valley Park in Reading in England
Oracle in Markham, Ontario
pg. 55
`
CHAPTER - 4
DATA ANALYIS
AND
INTERPRETATION
pg. 56
`
Liquidity Ratios:
Liquidity refers to a firm’s ability to meet its obligations in the short term, usually one
year. These ratios are based on the relationship between current assets and current
liabilities. The important ratios are current ratio, acid test ratio and cash ratio.
1. Current Ratio: The current ratio is a liquidity ratio that measures a company's
ability to pay short-term and long-term obligations.
Current Ratio= Current Assets/Current Liabilities

TABLE 4.1
All values are in terms of USD billions
YEAR May 31, May 31, May 31, May 31, May 31, May 31,
2020 2019 2018 2017 2016 2015
Current
ratio 3.03 2.49 3.96 3.08 3.74 4.13
Quick
ratio 2.83 2.31 3.78 2.95 3.57 3.92
Cash
ratio 2.50 2.03 3.50 2.73 3.26 3.56
(Source: Annual Report)

Graphical Representation of Current Ratio
Graph No. 4.1
pg. 57
`
INTERPRETATION:
The above table and diagram shows the current ratio of five year (2016-2020). The current
ratio of Oracle Corp. varies from 2.4 to 3.8 with an average of 3.2. The solvency position of
Oracle Corp, in terms of current ratio was above the standard norm volume for the entire
period. The current ratio in the year of 2016 is 3.7 which went up to 2.4 in the year 2018. That
shows the effective utilization of funds in the company .
2. Acid Test Ratio:

The Acid-test or quick ratio or liquidity ratio measures the ability of a company to use
its near cash or quick assets to extinguish or retire its current liabilities immediately.
Quick assets include those current assets that presumably can be quickly converted to
cash at close to their book values.
Quick (Acid Test) Ratio = Monetary Current Assets/ Total Current Liabilities
TABLE 4.2

Monetary
Year Current Liabilities Quick Ratio
Current Assets
2016 62.3 17.2 3.622
2017 72.1 24.1 2.992
2018 73.3 19.9 3.683
2019 43.8 18.6 2.355
2020 49.4 17.2 2.872
pg. 58
`
Graphical Representation of Acid

Test Ratio Graph No. 4.2
80
72.1 73.3
70
62.3
60
49.4
50 43.8
40
30 24.1
20 17.2 19.9 18.6 17.2
10
0
2016 2017 2018 2019 2020
Monetary Current Assets Current Liabilities
INTERPRETATION:
The above table and diagram show the quick ratio of five years (2016-2020). The Liquid
Ratio shows the actual liquidity of a firm. As a convention the Liquid Ratio of 1:1 is
considered satisfactory. The company has been efficient in maintaining its Liquid Assets
over its Current liability.
Over the period of analysis, the company maintained its quick assets more than its liabilities
on the year of 2016 the company showed an increase in quick ratio each year which means
there was sufficient cash to pay to the creditors. The company’s quick assets it’s gradually
decreasing year by year. The liquid ratio of the company is good, but needs to be improved
on the Acid ratio.
pg. 59
`
3. Cash Ratio: The ratio of the liquid assets of a company to its current liabilities. The
ratio of cash to deposits in a bank.
Cash ratio= Cash + Marketable Securities/Current Liabilities
TABLE 4.3
Cash +
Current
Year Marketable Quick Ratio
Liabilities
Securities
2016 56.1 17.2 3.262
2017 66.01 24.1 2.739
2018 67.2 19.9 3.377
2019 37.8 18.6 2.032
2020 43.1 17.2 2.506
Graphical Representation of Cash Ratio

Graph No. 4.3
pg. 60
`
160
140 134.99 137.26

112.8 115.44
120 108.71
100
80 70.73
56.13
60
40.11 48.11 51.67
40
20
0
2016 2017 2018 2019 2020
Total debt Total Asset
INTERPRETATION:
The above table and diagram show Cash Ratio indicates that the capacity of the company to
realize current liabilities with its liquidity position. The above table shows the cash ratio
position of five years (2016- 2020). The cash ratio of Oracle Corp. has shown a good balance
maintaining at a healthy rate through the 5 years.
pg. 61
`
Leverage (Solvency) Ratios

Companies rely on a mixture of owner’s equity and Debt to finance their operations. A
leverage ratio is any one of several financial measurements that look at how much capital
comes in the form of debt (loans) or assesses the ability of a company to meet its financial
obligations.
1. Debt/Asset Ratio: A variation on the Debt-to-Asset Ratio that is more commonly

used in practice is the Debt-to-Equity Ratio which simply expresses the debt as a
percentage of equity rather than total assets.
Debt/Asset Ratio = Total Debt/Total Asset
TABLE 4.4
Debt/Asset
Year Total debt Total Asset
Ratio
2016 40.11 112.8 0.36
2017 48.11 134.99 0.36
2018 56.13 137.26 0.41
2019 51.67 108.71 0.48
2020 70.73 115.44 0.61
Graphical Representation of Debt/Asset Ratio

Graph No. 4.4
pg. 62
`
Debt/Asset Ratio
160
140 134.99 137.26

112.8 115.44
120 108.71
100
80 70.73
56.13 51.67
60
40.11 48.11
40
20
0
2016 2017 2018 2019 2020
Total debt Total Asset
INTERPRETATION:
The above table shows the Debt Asset Ratio of five years that is from 2016-2020 of Oracle
Corp. In the year 2016, there was 0.36 that is the assets that is financed by the creditors and
debt thereafter it increased year by year and increased to 0.61 for the finance and it is more
Leverage and more risk.
pg. 63
`
2. Debt Equity Ratio: The D/E ratio indicates how much debt a company is using
to finance its assets relative to the amount of value represented in shareholders’
equity.
Debt Equity Ratio=Total Debt/Total Shareholder’s Equity
TABLE 4.5
Total Shareholder’s Debt Equity

Year Total debt
Equity Ratio
2016 40.11 45.21 0.90
2017 48.11 47.29 1.02
2018 56.13 53.86 1.04
2019 51.67 45.73 1.13
2020 70.73 21.79 3.25
Graphical Representation of Debt/Equity Ratio

Graph No. 4.5
Debt/Equity Ratio
120 109.99
95.49 97.4
100 92.52
84.76
80 70.73
60 56.13
48.11 51.67
40.11
40
20
0
2016 2017 2018 2019 2020
Long Term Debt Long Term Capital
pg. 64
`
INTERPRETATION:
The above table and diagram show the Debt Equity Ratio of 5 years (2016-2020). This Ratio
is calculated to assess the ability of the firm to meet its long-term liabilities. Generally, debt
equity ratio of is considered safe. The standard norm for the ratio is 2:1. The actual debt-
equity ratio in the above table shows, the first year 2016 is the standard ratio after that ratio
has increased from 0.90 in the year 2016 to 3.25 in the year of 2020. This indicates from the
study that the firm is treading with more risk as the debt dominates the shareholder’s equity
by more than 3 times.
3. Current Liabilities to Net worth: Net worth is also called as shareholders equity
which is calculated by deducting the total liabilities from the total assets of the
company.
Current Liabilities to Net worth = Total Current Liabilities/Net worth
TABLE 4.6
Debt to
Year Total debt Total Networth
Networth
2016 40.11 72.69 0.55
2017 48.11 86.88 0.55
2018 56.13 81.13 0.69
2019 51.67 57.04 0.91
2020 70.73 44.71 1.58
pg. 65
`
Graphical Representation of Current Liabilities to Net Worth

Graph No. 4.6
Debt to Networth ratio

120 109.99
95.49 97.4
100 92.52
84.76
80 70.73
56.13
60 51.67
48.11
40.11
40
20
0
2016 2017 2018 2019 2020
INTERPRETATION:
The above table and diagram show the Total current Liabilities to Net Worth for 5 years
(2016-2020). This Ratio is calculated to assess the true value of the company and the ability
to pay its short-term liabilities from its current assets. In the year 2016, the ratio was 0.55 &
it got increased to 1.58 in the year 2020 which shows that the solvency ratio of the company
is decreasing over a period of time which is not a good sign for a growing company as we
say, the lower the solvency rate, the better for the company.
pg. 66
`
Capitalization Ratio: Capitalization Ratio measures the debt component of

the company’s capital structure, or capitalization. That is, the sum of long-term
debt divided by long term debt plus shareholder’s equity.
Capitalization Ratio = Long Term Debt/Long Term Capital

TABLE 4.7
Long Term Capitalization

Year Long Term Capital
Debt Ratio
2016 40.11 84.76 0.47
2017 48.11 95.49 0.50
2018 56.13 109.99 0.51
2019 51.67 97.4 0.53
2020 70.73 92.52 0.76
Graphical Representation of Capitalization Ratio

Graph No. 4.7
Capitalization Ratio
120 109.99
95.49 97.4
100 92.52
84.76
80 70.73
56.13 51.67
60
48.11
40.11
40
20
0
2016 2017 2018 2019 2020
pg. 67
`
INTERPRETATION:
The above table and diagram show the Capitalisation Ratio for 5 years (2016-2020) of Oracle Corp.
The capitalisation ratio has increased to a certain level through the five-year period. It started with
0.47 in the year 2016 and increased to 0.76. This is an indication that the capital of the company is
used rightly and is employed well so there was a necessity to increase the company’s capital
structure.
pg. 68
`
Asset Management (Utilization) Ratios/Activity Ratios
4. Inventory Turnover Ratio: Inventory Turnover Ratio is a measure of how

efficiently a company can control its merchandise, so it is important to have a high
turn. This shows the company can efficiently sell the inventory it buys.
Inventory Turnover = Cost of Goods Sold/ Inventory
For inventory, average inventory is used instead of ending inventory because many
companies’ merchandise fluctuates greatly throughout the year.
TABLE 4.8
Inventory
Year COGS Average Inventory
Turnover
2016 9.5 0.38 26.94
2017 9.12 0.28 34.17
2018 8.91 0.33 28.52
2019 9.70 0.35 27.98
2020 9.68 0.42 21.71
Graphical Representation of Inventory Turnover Ratio

Graph No. 4.8
Inventory Turnover
1 4
2 0
1
0 3
0
8
6 2
0
4
1
2016 2017 2018 2019 2020
COG Average Inventory

pg. 69
`
INTERPRETATION:
The Inventory Turnover Ratio shows how well the company maintains its solvency. The
higher the Ratio the better the company is able to sell off its inventory and the money is used
in an effective way of not being locked up in inventory. The graph shows that Oracle Corp.
had maintained a high ratio of 34.17 in the year 2016. And every other year it was low i.e.,
26.94(2017), 28.52(2018), 27.98(2019) and 21.71(2020). This may mean that the company
had higher sales and the credits were repaid sooner.
5. Average Age of Inventory Average: The average age of inventory is the average
no of days it takes for a company to sell off inventory.
The formula to calculate the Age of Inventory = Inventory/ (COGS/365)
TABLE 4.9
Average Age of
Year Inventory COGS/365
Inventory
2016 0.38 0.028 13.55
2017 0.28 0.026 10.68
2018 0.33 0.026 12.80
2019 0.35 0.027 13.05
2020 0.42 0.025 16.81
pg. 70
`
Graphical Representation of Average Age of Inventory

Graph No. 4.9
Average Age of Inventory

12.00
10.93 11.08
9.34
10.00
8.90
8.00
6.00
4.77
4.22
4.00 4.12 3.83 4.12 3.63
2.00
0.00
2016 2017 2018 2019 2020
Net Income Total No. of Outstanding Shares
INTERPRETATION:
The average age of inventory shows how the company has improved each year by the sales in
inventory each year. Oracle Corp. had higher sales in inventory in the year 2020 with 16.85
and the lowest inventory sales in 2017 with 10.68. This could be due to higher market demand
and the ability to meet the customer’s demands on time.
pg. 71
`
6. Average Collection Period: The average collection period is the approximate

amount of time that it takes for a business to receive payments owed in terms of
accounts receivable.
Average Period= Debtors + Bills Receivables/ Credit Sales per Day * 360 days
Credit Sales per day= Net Credit Sales of the year/365
Average Collection Period (Days’ Sales Outstanding) = Accounts

Receivable/(Sales/365)
TABLE 4.10
All values are in terms of USD billion

Average
Accounts
Year (Sales/365) Collection Period
Receivable
Inventory
2016 7.19 0.102 70.70
2017 6.88 0.102 67.54
2018 6.99 0.105 66.65
2019 6.44 0.105 61.49
2020 6.2 0.102 61.08
Graphical Representation of Average Collection Period

Graph No. 4.10
Average Collection
8 7
6 7
4 6
2 6
5
2016 2017 2018 2019 2020
AR (sales/365) Average Collection
pg. 72
`
INTERPRETATION:
The above table and diagram show the relationship between Debtors + Bills Receivable and
Credit Sales per day. In 2016 it was 70.70 and thereafter it was decreased in the coming years
2017 and 2018 (67.54 and 66.65) that shows the company collecting payment faster but
thereafter in the year 2019 (61.49) and 2020 (61.08) they started to collect the payment even
faster. This may be an indication that its credit terms are too strict, and customers may seek
suppliers with more lenient payment terms.
7. Fixed Assets Turnover Ratio: The final major category of assets, particularly
manufacturing firms, is that of Property, Plant & Equipment, or Fixed Assets. The
Fixed Asset Turnover ratio looks at the amount of productive equipment that a firm
has relative to the amount of sales that it is generating. This ratio specifically
measures how able a company is to generate net sales from fixed-asset investments.
Fixed Assets Turnover Ratio= Net Sales/ Net Fixed Assets

Here, Net Fixed Assets = Fixed Assets – Depreciation
Note: Net Fixed Assets does not include Intangibles
TABLE 4.11
Fixed Assets
Year COGS Net Fixed Assets
Turnover Ratio
2016 9.5 4.00 2.38
2017 9.12 5.32 1.71
2018 8.91 5.90 1.51
2019 9.7 6.25 1.55
2020 9.68 8.24 1.17
pg. 73
`
Fixed Assets Turnover Ratio

12.00 11.08
10.93
10.00 9.34
8.90
8.00
6.00
4.77
4.22 4.12 3.83 4.12
4.00 3.63
2.00
0.00
2016 2017 2018 2019 2020
INTERPRETATION:
The above table and diagram shows the relationship between COGS and Net Fixed Assets.
In the year 2016, the company was effectively utilizing its assets by maintaining 2.38 but
later year, there was gradual decrease in the utilization. Hence, the company should focus
on asset utilization in the coming years.
pg. 74
`
8. Total Asset Turnover Ratio: Asset turnover ratio is the ratio of the value of
a company’s sales or revenues generated relative to the value of its assets.
Total Asset Turnover = Sales/Total Asset
TABLE 4.12
Total Asset
Year Sales Total Asset
Turnover
2016 37.18 81.81 0.45
2017 37.05 112.18 0.33
2018 37.73 134.99 0.28
2019 39.83 137.60 0.29
2020 39.51 108.71 0.36
Graphical Representation of Total Asset Turnover Ratio

Graph No. 4.12
Total Asset Turnover

12 10.93 11.08
10 9.34
8.90
6
4.77
4.22
4.12 3.83 4.12
4 3.63
0
2016 2017 2018 2019 2020
pg. 75
`
INTERPRETATION:
The above table and diagram shows the relationship between sales and total assets. Total Assets
Turnover Ratio of the company is rotating their assets into business purpose. The Asset
Turnover ratio can often be used as an indicator of the efficiency with which a company is
deploying its assets in generating revenue. In the year 2016 it is 0.47 compared to next four
years the relationship between sales and total assets is very high. In the year 2017 it is 0.45 and
in the year 2018, 2019 and 2020 it is decreasing to 0.42, 0.34 and 0.33. The overall performance
of the total assets turnover of Oracle Corp. is good.
`
Profitability Ratios
Profitability Ratios are a class of financial metrics that are used to assess a business’s ability to
generate earnings compared to its expenses and other relevant costs incurred during a specific
period of time.
9. Gross Profit Margin: It is the profitability ratio that shows the relationship between
gross profit and total net sales revenue. It is a popular tool to evaluate the operational
performance of the business
Gross Profit Ratio= Gross Profit / Net Sales * 100
TABLE 4.13
Gross Profit
Year Gross Profit Sales
Margin
2016 27.86 37.18 75%
2017 27.93 37.05 75%
2018 28.81 37.73 76%
2019 30.13 39.83 76%
2020 29.82 39.51 75%
Graphical Representation of Gross Profit

Margin Graph No. 4.13
12 10.93
Gross Profit Margin 11.08
9.34
10 8.90
8
6 4.77 4.22 4.12

4 4.12 3.83 3.63
0
2016 2017 2018 2019 2020
pg. 77
`
INTERPRETATION:
The above table and diagram show the profit earned by the company before tax and interest
payable. This ratio measures the margin of profit available on sales. The higher the gross profit
ratio, the better it is. It can observe that the company is maintaining a stable profit margin every
year which is a good sign of a effective planning & execution.
1. Operating Profit Ratio: Operating Profit shows the profit derived from Operating
Activities, these are the main course of business and it estimates the amount generated
from the main business.
Operating Profit Margin= Operating Income/Sales
Operating Income in this case is EBIT after Unusual

Expense
TABLE 4.14
Operating Operating Profit

Year Sales
Income Margin
2016 13.75 37.18 37%
2017 14.62 37.05 39%
2018 14.69 37.73 39%
2019 13.93 39.83 35%
2020 12.70 39.51 32%
pg. 78
`
Graphical Representation of Operating Profit Margin
Graph No. 4.14
Operating Profit
5 40.0
4 38.0
3 36.0
2 34.0
1 32.0
0 30.0
2016 2017 2018 2019 2020
Operating Sale Operating Profit
INTERPRETATION:
The Operating Profit of Oracle Corp is 37.04%, 39.32%, 38.38%, 35.44% and 32.28% during the
years 2016, 2017, 2018, 2019 and 2020 respectively. The Operating Profits can be noted high in
the year 2016 where its 39.32% and lowest in the year 2020 where it is 32.28%. Overall
performance of the business is good.
pg. 79
`
2. Net Profit Ratio:

The net profit percentage is the ratio of after-tax profits to net sales. It reveals the
remaining profit after all costs of production, administration, and financing have been
deducted from sales, and income taxes recognized.
Net Profit Ratio= Net Profit / Net Sales * 100
Net Profit Margin= Net Income/Sales*100
TABLE 4.15
Net Profit
Year Net Income Sales
Margin (%)
2016 10.93 37.18 29%
2017 8.90 37.05 24%
2018 9.34 37.73 25%
2019 3.83 39.83 10%
2020 11.08 39.51 28%
Graphical Representation of Net Profit Margin Ratio
Graph No. 4.15
4
Net Profit Margin (%)
3.05
3
3 2.29 2.11 2.27

2
2
0.93
1
1
0
2016 2017 2018 2019 2020
Earnings per…
INTERPRETATION:
The above table and diagram show the relationship between net profit and sales. Net Profit
ratio was 29%, 24%, 25%, 10% and 28% in year 2016, 2017, 2018, 2019 and 2020
respectively. There was a huge drop in the net profit in the year 2020 however the company
was able to recover & went on achieving 28% in next year. Overall, it was satisfactory.
pg. 80
`
Market Ratios
The book-to-market ratio is a ratio used to find the value of a company by comparing the
book value of a firm to its market value. Book value is calculated by looking at the firm’s
historical cost, or accounting value. Market value is determined in the stock market through
its market capitalization.
1. Earnings per Share: is the portion f a company’s profit allocated to each outstanding
share of common stock. Earnings per share, serves as an indicator of a company’s
profitability.
Earnings per Share (Basic) = Net Income/ Total No. of Shares Outstanding
TABLE 4.16
Total No. of Earnings per

Year Net Income
Outstanding Shares Share(Basic)
2016 10.93 4.77
2.29
2017 8.90 4.22
2.11
2018 9.34 4.12
2.27
2019 3.83 4.12
0.93
2020 11.08 3.63
3.05
Graphical Representation of Earnings per Share
(Basic) Ratio Graph No. 4.16
Earnings per Share (Basic)

12 3
10 2.5
8 2
6 1.5
4 1
2 0.5
0 0
2016 2016 2017 2018
Net income Total No. of Outstanding Shares
pg. 81
`
INTERPRETATION:
The Earnings per Share are $2.29, $2.11, $2.27, $0.93 and $3.05 in the years 2016, 2017,
2018, 2019 and 2020 respectively. The company shows and increase in the Earnings per
Share each year till 2018 later it got decreased to 0.93 in the year 2019. However, in the 2020,
company made a huge comeback by increasing the earning per share upto 3.05 which is
remarkable considering huge dip in the previous year.
pg. 82
`
CHAPTER – 5
RECOMMENDATIONS,
SUGGESTIONS AND
CONCLUSIONS
pg. 83
`
FINDINGS
• The current ratio of Oracle Corp. varies from 2.4 to 3.8 with an average of 3.2. The
solvency position of Oracle Corp, in terms of current ratio was above the standard norm
volume for the entire period. The current ratio in the year of 2016 is 3.7 which went up
to 2.4 in the year 2018. That shows the effective utilization of funds in the company.
• The quick ratio: the company maintained its quick assets more than its liabilities on the
year of 2016 the company showed an increase in quick ratio each year which means
there was sufficient cash to pay to the creditors. The company’s quick assets it’s
gradually decreasing year by year. The liquid ratio of the company is good, but needs
to be improved on the Acid ratio.
• The cash Ratio of Oracle Corp. has also shown similar pattern with an increase &
decrease over the year from 3.2 in 2016 to 3.3 in 2017 to 2.5 in the year 2019 which
shows that the company is maintaining a good average cash ratio but it can improve a
bit.
• The debt- asset ratio of the five-year period 2014-2018 has been on a rise. The standard
ratio recommended is 0.4 or lesser. But the company had taken a higher risk by having
0.36, 0.36, 0.41, 0.48 and 0.61. This means the company had fixed expenses on capital
component for which assets were purchased.
• The standard norm for the Debt equity ratio is 2:1. The actual debt-equity ratio in the
above table shows, the first year 2016 is the standard ratio after that ratio has increased
from 0.90 in the year 2016 to 3.25 in the year of 2020. This indicates from the study
that the firm is treading with more risk as the debt dominates the shareholder’s equity
by more than 3 times.
• Current Liabilities to Net Worth ratio shows a fluctuating curve throughout the period.
It started at 0.55 in the year 2016 to 0.69 in 2017 and thereafter had a rise in the rest of
the years. This shows that the Shareholders have also been introduced in the years
ahead.
• The capitalization ratio has increased to a certain level through the five-year period. It
started with 0.47 in the year 2016 and increased to 0.76. This is an indication that the
capital of the company is used rightly and is employed well so there was a necessity to
increase the company’s capital structure.
pg. 84
`
• Inventory Turnover Ratio is fluctuating each year Oracle Corp. had maintained a
high ratio of 34.17 in the year 2016. And every other year it was low i.e.,
26.94(2016), 28.52(2017), 27.98(2018) and 21.71(). This may mean that the
company had higher sales and the credits were repaid sooner.
• The average age of inventory shows how the company has improved each year by the
sales in inventory each year. Oracle Corp. had higher sales in inventory in the year
2019 with 16.85 and the lowest inventory sales in 2016 with 10.68. This could be due
to higher market demand and the ability to meet the customer’s demands on time.
• Average Collection Period shows a decline in the graph indicating that the credit days
allowed was reduced as the time passed. In 2016 it was 70.70 and thereafter it was
decreased in the coming years 2017 and 2018 (67.54 and 66.65) that shows the company
collecting payment faster but thereafter in the year 2019 (61.49) and 2020 (61.08) they
started to collect the payment even faster. This may be an indication that its credit terms
are too strict, and customers may seek suppliers with more lenient payment terms.
• Inventory Turnover Ratio has seen a rise in the ratio in the year 2016 which means that
the inventory has sold faster in all the years except 2016 which had shown lesser sales.
• Fixed Assets Turnover Ratio has seen a decline in the graph throughout the five years
from 2016-2020. In the year 2016, the company was effectively utilizing its assets by
maintaining 2.38 but later year, there was gradual decrease in the utilization. Hence,
the company should focus on asset utilization in the coming years.
• The total assets turnover ratio was 0.47 2016 compared to next four years the
relationship between sales and total assets is very high. In the year 2016 it is 0.45 and
in the year 2017, 2018 and 2019 it is decreasing to 0.42, 0.34 and 0.33. The overall
performance of the total assets turnover of Oracle Corp. is good.
• The Profitability Ratios: The gross profit earned by the company before tax and interest
payable. This ratio measures the margin of profit available on sales. The higher the
gross profit ratio, the better it is. It can observe that the company is maintaining a stable
profit margin every year which is a good sign of a effective planning & execution.
pg. 85
`
• Gross Profit Margin shows a very good profit percentage in all the years. It started from
75.28% and increased continually to 76.38% during the five years. It shows that the
company has higher profit margin than any other manufacturing concern.
• Although the gross profit has been a high rise, the operating profits show a decline throughout
the years continually. The operating profits are 37.04%, 39.32%, 38.38%, 35.44% and 32.28%
during the years 2016, 2017, 2018, 2019 and 2020 respectively. This means that the operating
profits are lesser than the actual profits and the company is making good revenues.
• Net profit ratios show normal rate of return of every business. The rates are 24% in
2016 which got risen a bit to 25% in 2017 and later had lesser profits compared to 2016.
This is an indication of higher fixed expenses.
• Earnings per share shows and increase in the Earnings per Share each and every year
till 2017 later during the year 2018 there was a fall in the EPS where it fell from 2.27
to 0.93 drastically. However, it got raised up to that is 2019. This is also an indication
that the debt component absorbs more of the profits.
pg. 86
`
RECOMMENDATIONS
• The basic liquidity ratios are as per requirement of the industry standards. Hence it’s
recommended to maintain it in the future as well.
• The leverage ratios are a bit high compared to the industry standards. Its recommended
to balance the equity and the debt component to manage its fixed expenses well and to
provide a reasonable EPS to its investors.
• Oracle Corp. is enjoying liberal credit facilities from its suppliers. It should continue to
take advantage of high creditor’s payment.
• Inventories are managed in a right way to have sales being done at a right time. It is
recommended to manage only slightly better since it shows higher during 2013 which
means lesser movement of inventory.
• Oracle Corp. should try to manage the equity and debt which is very essential as per the
industry standard which has affected Current Liabilities to Net Worth, Capitalization
Ratio and profitability ratios.
• The overall performance of the Company is good and satisfactory since its making
normal profits
• It is also recommended that the company should aim at achieving higher profits on operations.
pg. 87
`
CONCLUSION
The project of Ratio analysis in Oracle Corp. is not merely a work of the project. But a brief
knowledge and experience as to how to analyze the financial performance of the Company. The
study undertaken has brought in to the light of the following conclusions. According to this project
I came to know that from the analysis of financial statements it is clear that:
• Oracle Corp. the company have been incurring profit during the period of study. So the firm
should focus on getting of huge operating profits in the coming year by taking care internal
as well as external factors.
• Gross Profit has been higher than operating profits and net profit. It is recommended to
concentrate on increasing its operating profits.
• Average Collection period has reduced continually throughout the years and hence the
effective use of money is possible and there would not be cash crunch in the business due
to this result.
• The percentage of improvement of profit from the year 2014 to 2018 is 92.54%
• The company can also think of providing better return to its investors by providing
better dividends.
• Market price per share also indicates Capital appreciation which is better for long term
investors. It’s good for investors to invest as they provide nominal returns.
• It can also be found that the current financial position of Oracle Corp is good and is in
profitability position.
• On an average the Oracle Corp. overall performance is good.
pg. 88
`
BIBLIOGRAPHY
Text Books
Author Name Book Publisher

C. Paramasivan T. FINANCIAL NEW AGE INTERNATIONAL
Subramanian MANAGEMENT PUBLISHERS
Website Links
http://www.marketwatch.com/investing/stock/orcl/financials
moneycontrol.com
financials.morningstar.com>balance-sheet
oracle.com
Wikipedia.com
www.oracle.com>10k-2011-423237
www.investopedia.com
pg. 89
`
Annual Financials for Oracle Corp.
Balance Sheet
Assets
Fiscal year is June-May. All values USD millions. 2016 2017 2018 2019 2020
Cash & Short Term Investments 32.22B 38.82B 54.37B 56.13B 37.83B
Cash Only 14.61B 17.77B 21.72B 20.15B 20.51B
Short-Term Investments 17.6B 21.05B 32.65B 35.97B 17.31B
Cash & Short Term Investments Growth 5.02% 20.50% 40.06% 3.23% -43.76%
Cash & ST Investments / Total Assets 39.38% 42.97% 49.02% 50.03% 34.80%
Total Accounts Receivable 6.88B 6.99B 6.44B 6.2B 5.91B
Accounts Receivables, Net 6.05B 6.09B 5.62B 5.39B 5.13B
Accounts Receivables, Gross 6.35B 6.39B 5.9B 5.71B 5.51B
Bad Debt/Doubtful Accounts (296M) (306M) (285M) (327M) (371M)
Other Receivables 826M 906M 817M 816M 776M
Accounts Receivable Growth -4.37% 1.72% -7.98% -3.64% -2.81%
Accounts Receivable Turnover 5.41 5.47 5.94 5.97 6.68
Inventories 240M 189M 314M 212M 320M
Finished Goods 95M 87M 164M 86M -
Work in Progress 31M 28M 38M 31M -
Raw Materials 114M 74M 112M 95M -
Progress Payments & Other - - - - -
Other Current Assets 2.36B 2.14B 2.07B 1.78B 2.33B
Miscellaneous Current Assets 2.36B 2.14B 2.07B 1.78B 2.33B
Total Current Assets 41.69B 48.14B 63.18B 64.31B 46.39B
2016 2017 2018 2019 2019
Net Property, Plant & Equipment 3.05B 3.06B 3.69B 4B 6.25B
Property, Plant & Equipment - Gross 5.76B 6.24B 7.3B 8.1B 13.08B
Buildings 2.48B 2.58B 2.72B 2.75B 4.25B
Land & Improvements 632M 632M 589M 744M 896M
Computer Software and Equipment - - - - -
Other Property, Plant & Equipment 2.62B 3B 3.89B 4.5B 7.77B
Accumulated Depreciation 2.7B 3.18B 3.61B 4.1B 6.82B
Total Investments and Advances - - - - 5M
Other Long-Term Investments - - - - 5M
Long-Term Note Receivable - - - - -
Intangible Assets 33.98B 35.79B 40.49B 39.53B 49.06B
Net Goodwill 27.34B 29.65B 34.09B 34.59B 43.78B
Net Other Intangibles 6.64B 6.14B 6.41B 4.94B 5.28B
Other Assets 2.32B 2.52B 2.75B 3.04B 4.31B
Tangible Other Assets 2.32B 2.52B 2.75B 3.04B 4.31B
pg. 90
`
Total Assets 81.81B 90.34B 110.9B 112.18B 108.71B

Assets - Total - Growth 4.45% 10.43% 22.76% 1.15% -20.80%
Liabilities & Shareholders' Equity
2016 2017 2018 2019 2020
ST Debt & Current Portion LT Debt - 1.51B 2B 3.75B 4.49B
Short Term Debt - - - - -
Current Portion of Long Term Debt - 1.51B 2B 3.75B 4.49B
Accounts Payable 419M 471M 806M 504M 580M
Accounts Payable Growth -4.34% 12.41% 71.13% -37.47% 9.64%
Income Tax Payable 1.02B 545M 617M - -
Other Current Liabilities 11.43B 11.87B 11.87B 12.95B 13.56B
Dividends Payable - - - - -
Accrued Payroll 1.85B 1.94B 1.84B 1.97B 1.63B
Miscellaneous Current Liabilities 9.58B 9.93B 10.03B 10.99B 11.93B
Total Current Liabilities 12.87B 14.39B 15.29B 17.21B 18.63B
Long-Term Debt 18.49B 22.67B 39.96B 40.11B 51.67B
Long-Term Debt excl. Capitalized Leases 18.49B 22.67B 39.96B 40.11B 51.67B
Non-Convertible Debt 18.49B 22.67B 39.96B 40.11B 51.67B
Convertible Debt - - - - -
Capitalized Lease Obligations 1M - - - -
Provision for Risks & Charges 90M 69M 34M 28M 23M
Deferred Taxes (593M) (579M) (415M) (1.13B) (2.43B)
Deferred Taxes - Credit 173M 258M 380M 160M 264M
Deferred Taxes - Debit 766M 837M 795M 1.29B 2.7B
Other Liabilities 5.04B 5.51B 6.14B 6.89B 15.76B
Other Liabilities (excl. Deferred Income) 4.73B 5.11B 5.75B 6.35B 15.09B
Deferred Income 312M 404M 393M 536M 669M
Total Liabilities 36.67B 42.9B 61.81B 64.39B 86.35B

Non-Equity Reserves - - - - -
Total Liabilities / Total Assets 44.82% 47.48% 55.73% 57.40% 79.43%
Preferred Stock (Carrying Value) - - - - -
Redeemable Preferred Stock - - - - -
Non-Redeemable Preferred Stock - - - - -
Common Equity (Total) 44.65B 46.88B 48.66B 47.29B 21.79B
Common Stock Par/Carry Value 18.89B 21.08B 23.16B 24.22B 26.91B
Retained Earnings 25.85B 25.97B 26.5B 23.89B (3.5B)
ESOP Debt Guarantee - - - - -
Cumulative Translation Adjustment/Unrealized For. Exch. Gain (3M) (81M) (851M) (778M) (1.18B)
Unrealized Gain/Loss Marketable Securities 80M 65M 124M 196M (90M)
Revaluation Reserves - - - - -
Treasury Stock - - - - -
Common Equity / Total Assets 54.57% 51.89% 43.88% 42.15% 20.04%
Total Shareholders' Equity 44.65B 46.88B 48.66B 47.29B 21.79B
Total Shareholders' Equity / Total Assets 54.57% 51.89% 43.88% 42.15% 20.04%
pg. 91
`
Accumulated Minority Interest 497M 569M 435M 501M 578M

Total Equity 45.15B 47.45B 49.1B 47.79B 22.36B
Liabilities & Shareholders' Equity 81.81B 90.34B 110.9B 112.18B 108.71B
Copyright 2017 FactSet Research Systems Inc. All rights
reserved. Source FactSet Fundamentals
Income Statement
Fiscal year is June-May. All values USD millions. 2016 2017 2018 2019 2020
Sales/Revenue 37.18B 39.51B 38.23B 37.05B 39.51B
Sales Growth 0.16% -0.82% -0.13% -3.08% -0.82%
Cost of Goods Sold (COGS) incl. D&A 9.5B 9.68B 9.68B 9.12B 9.68B
COGS excluding D&A 6.57B 6.77B 6.82B 6.61B 6.77B
Depreciation & Amortization Expense 2.93B 2.92B 2.86B 2.51B 2.92B
Depreciation 546M 1.23B 712M 871M 1.23B
Amortization of Intangibles 2.39B 1.69B 2.15B 1.64B 1.69B
COGS Growth -7.68% -0.18% 1.52% -5.83% -0.18%
Gross Income 27.68B 29.82B 28.55B 27.93B 29.82B
Gross Income Growth 3.16% -1.02% -0.68% -2.15% -1.02%
Gross Profit Margin - - - 75.39% -
2015 2016 2017 2018 2019
SG&A Expense 13.25B 15.77B 14.26B 14.83B 15.77B
Research & Development 4.85B 6.03B 5.52B 5.79B 6.03B
Other SG&A 8.4B 9.74B 8.73B 9.04B 9.74B
SGA Growth 3.71% -0.28% 3.63% 4.00% -0.28%
Other Operating Expense - - - - -
Unusual Expense (188M) 520M 358M 403M 520M
EBIT after Unusual Expense 14.62B 13.54B 13.93B 12.7B 13.54B
Non-Operating Income/Expense (50M) (125M) (190M) (214M) (125M)
Non-Operating Interest Income 237M 1.09B 349M 538M 1.09B
Equity in Affiliates (Pre-tax) - - - - -
Interest Expense 797M 2.08B 1.14B 1.47B 2.08B
Interest Expense Growth 4.05% 2.81% 25.05% 28.35% 2.81%
Gross Interest Expense 797M 2.08B 1.14B 1.47B 2.08B
Interest Capitalized - - - - -
Pre-tax Income 14.01B 12.42B 12.95B 11.56B 12.42B
Pre-tax Income Growth 7.10% -4.65% -6.19% -10.73% -4.65%
Pre-tax Margin - - - 31.20% -
Income Tax 2.97B 1.19B 2.9B 2.54B 1.19B
Income Tax - Current Domestic 1.97B 39.51B 2.46B 1.57B 39.51B
pg. 92
`
Income Tax - Current Foreign 1.12B 1.05B 981M 1.07B 1.28B

Income Tax - Deferred Domestic (97M) (168M) (454M) (144M) 1.1B
Income Tax - Deferred Foreign (20M) (80M) (94M) 39M 455M
Income Tax Credits - - - - (1.65B)
Equity in Affiliates - - - - -
Other After Tax Income (Expense) - - - - -
Consolidated Net Income 11.04B 11.05B 10.05B 9.02B -
Minority Interest Expense 112M 98M 113M 116M 11.24B
Net Income 10.93B 10.96B 9.94B 8.9B 152M

Net Income Growth 9.46% 0.27% -9.28% -10.43% 11.08B
Net Margin Growth - - - 24.03% 189.75%
Extraordinaires & Discontinued Operations - - - - -
Extra Items & Gain/Loss Sale Of Assets - - - - -
Cumulative Effect - Accounting Charges - - - - -
Discontinued Operations - - - - -
Net Income After Extraordinaires 10.93B 10.96B 9.94B 8.9B -
Preferred Dividends - - - - 11.08B
Net Income Available to Common 10.93B 10.96B 9.94B 8.9B -
EPS (Basic) 2.29 2.42 2.26 2.11 11.08B
EPS (Basic) Growth 15.08% 5.68% -6.61% -6.64% 3.05
Basic Shares Outstanding 4.77B 4.53B 4.4B 4.22B 227.96%
EPS (Diluted) 2.26 2.38 2.21 2.07 3.63B
EPS (Diluted) Growth 15.31% 5.31% -7.14% -6.33% 2.97
Diluted Shares Outstanding 4.84B 4.6B 4.5B 4.31B 230.00%
EBITDA 17.36B 17.89B 17.15B 15.61B 3.73B
EBITDA Growth 2.30% 3.04% -4.14% -8.96% 16.97B
EBITDA Margin - - - 42.14% -0.76%
Notes: Fiscal year= June-may
pg. 93

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(A research project report, submitted in partial fulfilment of the Masters in

A STUDY AND ANALYSIS OF THE PERFORMANCE OF

SUBMITTED BY: AMARNATH M

Enrolment No: 5719370032

Under the Guidance of

MBA TWINNING PROGRAMME

(A research project report, submitted in partial fulfilment of the Masters in

A STUDY AND ANALYSIS OF THE PERFORMANCE OF

SUBMITTED BY: AMARNATH M

Enrolment No: 5719370032

Under the Guidance of

MBA TWINNING PROGRAMME

THE BANGALORE JESUIT EDUCATIONAL SOCIETY (R)

This is to certify that this project titled “A STUDY AND ANALYSIS OF

Student Name: AMARNATH M

of IV semester MBA under the guidance of Dr. KANTHIMATHINATHAN

Signature of the Candidate Signature of the Director

Signature of the Coordinator

THE BANGALORE JESUIT EDUCATIONAL SOCIETY (R)

CERTIFICATE OF THE GUIDE

Signature of the Candidate Signature of the Guide

Signature of the Student

TO WHOMSOEVER IT MAY CONCERN

This is to certify that AMARNATH M [Reg No. 5719370032], a student of MASTER OF

I am ineffably indebted to Dr. KANTHIMATHINATHAN

I express sincere thanks to ‘ORACLE CORPORATION’ for granting

I also acknowledge with a sense of reverence, my gratitude towards my beloved

Oracle Corporation Company is a multinational computer technology

Oracle Corp. is a 39-year-old-plus company builds and develops tools for

Sl. No Title Page No.

Theoretical background 1-23

Financial Statement Analysis

Types of financial Analysis

Classifications of Financial ratios

Chapter - 2 Research Methodology

2.2 Need for the study 24-27

2.3 Liquidity and Profitability

2.4 Scope of the study

2.5 Objectives of the study

2.6 Statement of the Problem

2.7 Research Methodology

Chapter –3 Company Profile 28-54

Chapter –4 Analysis and Interpretation 55-77

Chapter –5 Findings, Recommendations and Conclusion 78-82

Sl. No Table No Title of the tables Page No

1 4.1 Current Ratio 56

2 4.2 Quick Ratio/ Acid Test Ratio 57

3 4.3 Debt/Asset Ratio 58

4 4.4 Cash Ratio 59

5 4.5 Current Liabilities to Net worth 60

6 4.6 Debt/equity Ratio 62

7 4.7 Capitalisation Ratio 63

8 4.8 Average Age of Inventory Average 64

9 4.9 Inventory Turnover Ratio 65

10 4.10 Average Collection Period 67

11 4.11 Total Asset Turnover Ratio 68

12 4.12 Fixed Assets Turnover Ratio 69

13 4.13 Gross Profit Margin 71

14 4.14 Operating Profit Ratio 72

15 4.15 Net Profit Ratio 73

16 4.16 Earnings per Share 74

17 4.17 Price Earnings ratio 75