Oracle Financial Software Services Financial Report Analysis, Essay Example

Question 1

Oracle Corporation is a leading enterprise software products as well as computer hardware systems. The company has specialized in developing and marketing database software under its own brand. The company has further been involved in acquiring some highly productive and profitable start-ups to expand the scope of their operations over the years. The company has diversified into database applications, data storage, servers and middleware. The company has also branched into cloud computing services as well as applications. Some of the companies well known products fall under customer relationship management (CRM), supply chain management (SCM) and enterprise resource planning (ERP) software.

The company is currently headquartered in Redwood Shores, Redwood City, California, United States. However, the company has a number of branches in various locations around the world. Within the United States, The Company has offices located in every states. The most prominent of the company’s international offices are located in India, with the most prominent being the Delhi Regional Office. This is the main office for Oracle Financial Services Software Limited.

Question 2

The company was last audited in May 2015 by S.R. Batliboi & Associates LLP. According to the auditor’s opinion, there are a number of interesting facts that point out the company’s performance; the company has considerably delayed in clearing its foreign withholding tax, foreign income tax and foreign valued added tax. However, the auditor reports that no fraud has been detected either committed by the company or for it.

Question 3

Oracle Financials Software Services experienced 7.87% reduction in net income from the previous year, 2014. As of March 2014, Net Income stood at ? Cr. 1,148.36 ($ 173,015,018.17). However, by March 2015, net income had reduced by ? Cr. 90.34 ($ 13,610,868.32) representing a 7.87% reduction during the year.

Question 4

Oracle FSS recorded an 8.38% decrease in earnings per share between March 2014 and March 2015. March 2015 recorded ? 125.04 ($ 1.88) earnings per share down from ? 136.48 ($ 2.06) from the previous year.

Question 5

The company recorded cash dividend (equity dividend) (%) of 13,3300. This was a 100% increase from the previous year, as the company did not issue any cash in March 2014. The company also realized equity dividends of ? 140.7, up from ? 160.96 the previous year.

Question 6

In March 2015, the company realized the most amount of positive cash flows from investing activities than operating and financing activities. Investing activities recorded ? Cr. 3,732.35 in March 2015, a 687.45% increase from the previous year, having recorded net negative cash flows of ? Cr. 645.24. Operating activities recorded net positive cash flows of ? Cr. 974.35, a 55.21% increase from the previous year, having recorded a net positive cash flow of ? Cr. 627.77.

Question 7

The amount of financing provided by the creditors against that of its owners is represented by the Equity/Debt ratio. However, information pertaining to the debt to equity ratio for the company is not available as the company a loan-free company, with not debt to finance any of its operations.

Question 8

Oracle Financial Software Services does not have any contingent measures put in place. This is owing to the fact that contingent liabilities within the company hare held at a zero line basis.

Question 9

Oracle Financial Software Services is currently listed in two stock exchanges; the National Stock Exchange of India (NSE) under the sticker title OFSS, and in the Bombay Stock Exchange (BSE) under the sticker title 532466.

Question 10

Over the past year, i.e. between November 2014 and November 2015, Oracle Financial Software Services stock has experienced a general growth pattern characterized by periods of sharp rises and falls in its value. On December 8^th, 2014, Infosys founders sold part of their stake in the company, leading to bullish markets and an eventual tumble in the value of the stock. The company released its Q3 performance results on February 13, 2015, leading to another drop in stock value. The announcement of grant of options under the OFSS stock option on March 30, 2015 led to a temporary upward surge in the stock’s value. On May 14, 2015, the company released its FY15 results which led to an increase in the share value. The company is currently in an upward trend with the release of every period’s results.