Oracle Story

<div class='circular--portrait' style='background:#006400;color: #FFE4E1;font-size:3em;'>ORC</div>
ORCL -- USA Stock  

USD 62.55  0.75  1.21%

Oracle is scheduled to announce its earnings today. The next earnings report is expected on the 11th of March 2021. Oracle Average Equity is relatively stable at the moment as compared to the past year. The company's current value of Average Equity is estimated at 15.47 Billion. Enterprise Value is expected to hike to about 211.8 B this year, although the value of Invested Capital will most likely fall to nearly 81 B. As many baby boomers are still indifferent towards technology space, it makes sense to summarize Oracle as a unique choice for millenniums. Let's try to summarize if Oracle shares are reasonably priced going into January.
Published over a month ago
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Should I hold on to my Oracle (NYSE:ORCL) position?
The company currently holds 70.77 B in liabilities with Debt to Equity (D/E) ratio of 6.98, indicating Oracle may have difficulties to generate enough cash to satisfy its financial obligations. Oracle has a current ratio of 2.61, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Oracle financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Oracle, including all of Oracle's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Oracle assets, the company is considered highly leveraged. Understanding the composition and structure of overall Oracle debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Oracle Total Liabilities

Oracle liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Oracle has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Oracle balance sheet include debt obligations and money owed to different Oracle vendors, workers, and loan providers. Below is the chart of Oracle short long-term liabilities accounts currently reported on its balance sheet.
You can use Oracle financial leverage analysis tool to get a better grip on understanding its financial position

How important is Oracle's Liquidity

Oracle financial leverage refers to using borrowed capital as a funding source to finance Oracle ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Oracle financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Oracle's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Oracle, but it might be worth checking our own buy vs. sell analysis

An Additional Perspective On Oracle

The entity reported the previous year's revenue of 39.22 B. Net Income was 10.25 B with profit before overhead, payroll, taxes, and interest of 31.13 B.

Liabilities Breakdown

Tax Liabilities
16.1 B
Current Liabilities
70.3 B
Long-Term Liabilities
Total Liabilities111.52 Billion
Current Liabilities16.07 Billion
Long-Term Liabilities70.34 Billion
Tax Liabilities10.46 Billion

Oracle may start a bounce-back in January

New skewness is at -0.92. Oracle has relatively low volatility with skewness of -0.92 and kurtosis of 5.07. However, we advise all investors to independently investigate Oracle to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Takeaway on Oracle Investment

While many of the other players under the software?infrastructure industry are still a bit expensive, Oracle may offer a potential longer-term growth to stakeholders. While some stakeholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Oracle.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Oracle. Please refer to our Terms of Use for any information regarding our disclosure principles.

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