On Dec. 19, enterprise software behemoth Oracle
- Sales of business applications outpaced databases and middleware all over the globe, but no single outstanding product category or geographic market fueled the growth this time.
- Margins are inching upward as Oracle's economies of scale kick in.
- When it comes to winning approval from our CAPS community, Oracle leads a closely contested business-software race. Is that fair? Weigh in today with your opinion of Oracle, its competitors, or any other company.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2008 |
Q2 2007 |
Change |
|
|---|---|---|---|
|
Sales |
$5,313 |
$4,163 |
27.6% |
|
Net Profit |
$1,303 |
$967 |
34.7% |
|
EPS |
$0.25 |
$0.18 |
38.9% |
|
Diluted Shares |
5,232 |
5,287 |
(1.0%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2008 |
Q2 2007 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
76.7% |
75.4% |
1.3 |
|
Operating Margin |
33.5% |
32.6% |
0.9 |
|
Net Margin |
24.5% |
23.2% |
1.3 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2008 |
Q2 2007 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$8,432 |
$7,825 |
7.8% |
|
Accounts Rec. |
$3,264 |
$2,543 |
28.4% |
|
Liabilities |
Q2 2008 |
Q2 2007 |
Change |
|---|---|---|---|
|
Accounts Payable |
$346 |
$284 |
21.8% |
|
Long-Term Debt |
$6,236 |
$5,735 |
8.7% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2008 |
Q2 2007 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$602 |
$243 |
147.7% |
|
Capital Expenditures |
$69 |
$57 |
21.1% |
|
Free Cash Flow |
$533 |
$186 |
186.6% |
|
$1,594 |
$1,178 |
35.3% |
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
|---|---|---|---|
|
Microsoft |
$329,690 |
23.1 |
|
|
IBM |
$149,330 |
16.0 |
|
|
Oracle |
$113,890 |
26.2 |
|
|
SAP AG |
$61,360 |
21.8 |
|
|
Sun Microsystems |
$15,690 |
27.7 |
Keep your partners close and the competition in your vest pocket.
Related Foolishness:
- Foolish Forecast: Oracle's Feeding Frenzy
- Icahn Is Crazy for Snubbing Oracle
- 3 More Software Buyouts
- Foolish Fundamentals: Margins
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At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.
