Oracle Corporation Harvard Case Solution & Analysis

Oracle Corporation Case Solution 

1.       Perform an analysis of the company’s business operation:

Industry wise, the organizations are confronting to increase the incomes while holding costs in line. It implies that organizations need to deal with their business operations as cost successfully as would be practical so they meet their income and profits targets. The Oracle Financial Analysis makes effective cooperative collaboration with other Oracle BI Applications items by guaranteeing that rich budgetary knowledge drives all client, supplier, and workforce choices, bringing lower costs, expanding income, and more profits and ultimately performance.

Business operations can be managed through monitoring; analyzing and comparing the performance with benchmarks as the financial advisors quickly point out the variation and can take possible actions to correct them.The operations empower the organization to adequately deal with their clients and progress business execution by:

Improving the financial performance by controlling the cost through maintaining the expenses and taking corrective actions that ultimately increases the performance. As in this case, the revenue has been increased from 2011 to 2013 by 2.18% and coming to expenses; theses had been decreased by 4% in 2013 compared to 2012.

The company’s business software and enterprise performance management are develop that helps the company in order to effective utilize the business operations and plan and increase the exposure of the company in the market. This can be possible if the company gets the high profitability and meet the targets and goals. Based on the case, the company’s profitability is not good enough though it has optimized the cost but income after interest and tax is very low that results in decrease in the free cash flows in the year end 2013 due to repurchasing of equity and purchase of marketable securities.

2.      Relevant ratios and relevant changes and analyze how the company has performed during the fiscal year 2013 using the financial analysis framework.

The Oracle Corporation (NYSE: ORCL) is a main business programming organization, it is known for its broadly utilized Oracle database items. The organization has developed from giving database administration to offering a scope of business applications, including client experience, undertaking execution management, human capital management, product life cycle direction and inventory network management. In order to analyze an organization as unpredictable like Oracle, certain budgetary ratios can serve and focuses for understanding fiscal performance.

Sales growth ratio:

The company results in the annual revenue of 4% growth in 2012 and remained consistent in 2013 that is $ 37,180. This income development is vital for any organization that is attempting to stay competitive. For Oracle; the revenue growth can also be utilized for improving the return on equity (ROE) by using more debt but it will impact the profitability in terms of paying the interest expense and ultimately it impacts on the valuation of the company as well.

Assets, Liabilities and shareholder’s equity:

The balance sheet is comprised of three important elements that includes the equation of Assets=Liabilities + Owner’s equity. The company’s assets and liabilities can be both monetary and non-monetary, which includes; human resource (non-monetary asset) and tangible and intangible assets (monetary assets).The analysis based on assets and liabilities can be assessed that have material impact on the company’s financial performance. The change in percentage shows that the company’s assets have been increased by 4% and liabilities have been increased by 7%....................

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