Liabilities Breakdown
Tax Liabilities
16.1 B
Current Liabilities
70.3 B
Long-Term Liabilities
| Total Liabilities | 111.52 Billion | |
| Current Liabilities | 16.07 Billion | |
| Long-Term Liabilities | 70.34 Billion | |
| Tax Liabilities | 10.46 Billion |
Should I hold on to my Oracle (NYSE:ORCL) position?
 | By Vlad Skutelnik | Macroaxis Story |
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.
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Reviewed by Raphi Shpitalnik
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 positionHow 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. Financial leverage can amplify the potential profits to Oracle's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Oracle's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Oracle's total debt and its cash.
Is Oracle valued adequately by the market?
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.
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