Oracle Corporation's Mixed Earnings Report and Financial Health

Core Viewpoint - Oracle Corporation reported earnings per share of $2.26, surpassing estimates, but its revenue of $16.06 billion fell short of expectations, leading to a decline in share price [1][2] Financial Performance - Earnings per share were $2.26, exceeding the estimated $1.63 [1] - Revenue was reported at $16.06 billion, below the expected $16.86 billion [1] Market Reaction - The revenue miss resulted in a share price drop of over 6% in after-hours trading [2] - Concerns regarding AI infrastructure spending and high debt levels contributed to the stock's decline [2] Debt and Valuation Metrics - Oracle's debt-to-equity ratio is approximately 4.36, indicating a high level of debt relative to equity [2] - The price-to-earnings (P/E) ratio is about 50.72, and the price-to-sales ratio is around 10.61, suggesting high valuation relative to earnings and sales [2] - The enterprise value to sales ratio is approximately 12.22, and the enterprise value to operating cash flow ratio stands at about 33.50, indicating high valuation relative to sales and cash flow [3] Liquidity and Profitability - The current ratio is approximately 0.62, suggesting potential liquidity challenges in meeting short-term obligations [3] - An earnings yield of about 1.97% reflects the company's profitability relative to its share price [3]