GURUFOCUS.COM » STOCK LIST » Technology » Software » Oracle Corp (BUE:ORCL) » Definitions » Gross Margin %

Oracle (BUE:ORCL) Gross Margin % : 70.94% (As of Nov. 2024)


View and export this data going back to . Start your Free Trial

What is Oracle Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Oracle's Gross Profit for the three months ended in Nov. 2024 was ARS9,874,260 Mil. Oracle's Revenue for the three months ended in Nov. 2024 was ARS13,918,410 Mil. Therefore, Oracle's Gross Margin % for the quarter that ended in Nov. 2024 was 70.94%.

Warning Sign:

Oracle Corp gross margin has been in long-term decline. The average rate of decline per year is -2.4%.


The historical rank and industry rank for Oracle's Gross Margin % or its related term are showing as below:

BUE:ORCL' s Gross Margin % Range Over the Past 10 Years
Min: 71.27   Med: 79.72   Max: 80.59
Current: 71.27


During the past 13 years, the highest Gross Margin % of Oracle was 80.59%. The lowest was 71.27%. And the median was 79.72%.

BUE:ORCL's Gross Margin % is ranked better than
80.44% of 2618 companies
in the Software industry
Industry Median: 41.435 vs BUE:ORCL: 71.27

Oracle had a gross margin of 70.94% for the quarter that ended in Nov. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Oracle was -2.40% per year.


Oracle Gross Margin % Historical Data

The historical data trend for Oracle's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Oracle Gross Margin % Chart

Oracle Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 79.68 80.59 79.08 72.85 71.41

Oracle Quarterly Data
Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 71.10 70.87 72.53 70.65 70.94

Competitive Comparison of Oracle's Gross Margin %

For the Software - Infrastructure subindustry, Oracle's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Oracle's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Oracle's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Oracle's Gross Margin % falls into.



Oracle Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Oracle's Gross Margin for the fiscal year that ended in May. 2024 is calculated as

Gross Margin % (A: May. 2024 )=Gross Profit (A: May. 2024 ) / Revenue (A: May. 2024 )
=33147477.4 / 46420316.99
=(Revenue - Cost of Goods Sold) / Revenue
=(46420316.99 - 13272839.64) / 46420316.99
=71.41 %

Oracle's Gross Margin for the quarter that ended in Nov. 2024 is calculated as


Gross Margin % (Q: Nov. 2024 )=Gross Profit (Q: Nov. 2024 ) / Revenue (Q: Nov. 2024 )
=9874260.1 / 13918410.139
=(Revenue - Cost of Goods Sold) / Revenue
=(13918410.139 - 4044150.04) / 13918410.139
=70.94 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Oracle  (BUE:ORCL) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Oracle had a gross margin of 70.94% for the quarter that ended in Nov. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Oracle Gross Margin % Related Terms

Thank you for viewing the detailed overview of Oracle's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Oracle Business Description

Address
2300 Oracle Way, Austin, TX, USA, 78741
Oracle provides database technology and enterprise resource planning, or ERP, software to enterprises around the world. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system. Today, Oracle has more than 400,000 customers in 175 countries.