he earnings per share. Oracle’s is currently 0 and has been for the last three fiscal years, while the current industry average payout is 39.25%; obviously much higher than zero. I believe the reason that Oracle has not paid out any dividends in the last three fiscal years is because they are reinvesting all profits back into the corporation for projects to enable them to expand within their market. Dividend Yield is calculated by taking the expected dividend per share and dividing it by the stock price. Oracle’s is currently 0 again, and the industry average is 2.9%. A company with a low dividend yield will usually be an indicator of high potential future growth in the market, something a long-term investor in the company would like to hear (America Online, Inc. 2000). CONCLUSION AND DISCUSSIONOracle’s Investment AnalysisOracle’s revenue trend and growth in the industry, as seen in Appendix A, C, and D, are strong indicators that they are one of the major competitors within their particular software and programming industry. As seen in Appendix B and E, their stock’s performance has been steadily growing, splitting four times in the past four years. They have a very strong net profit margin, return on investment, and return on stockholders’ equity, which are good indicators for potential growth in the future. Out of twenty-nine investment brokers, twenty-five recommend to buy and four to hold, as seen in Appendix F. Even though they had some low averages when compared to their industry, like current ratio, we believe they are postured very well for future endeavors within the software and programming industry. So, to answer the question of whether or not we would invest in this company, we would say “yes”, but for the long haul, definitely not a short-term investment.Oracle’s Loan AnalysisEven though they have a current ratio that is below the industry average, they still...
