How much do depreciation assumptions change Oracle Corporation's earnings?
Gross property and equipment, depreciation and capital spending, with an alternative useful-life calculator. Cash spending is kept separate.
Depreciation against the asset base
Gross property and equipment of $122.65B against $7.62B of depreciation and amortization implies an average life of about 16.1 years (gross assets ÷ annual charge). The charge includes amortization where the company reports them together.
| Fiscal year | Gross PP&E | Net PP&E | Depreciation & amortization | Implied life (yrs) | Capital expenditure (cash) |
|---|---|---|---|---|---|
| 2021 | $15.80B | $7.05B | $1.54B | 10.3 | $2.13B |
| 2022 | $19.67B | $9.72B | $1.97B | 10.0 | $4.51B |
| 2023 | $28.67B | $17.07B | $2.53B | 11.4 | $8.70B |
| 2024 | $34.82B | $21.54B | $3.13B | 11.1 | $6.87B |
| 2025 | $59.55B | $43.52B | $3.87B | 15.4 | $21.21B |
| 2026 | $122.65B | $99.96B | $7.62B | 16.1 | $55.66B |
10-K filed 2026-06-22 · Depreciation
Compare an alternative useful life
A 17-year average life gives an annual charge of $7.21B instead of $7.62B. After tax at 21%, net income would be higher by $322.5M. Cash spending ($55.66B) is unchanged.
Straight-line on gross assets, no salvage value; land and construction in progress are not separated. Treat as an order-of-magnitude comparison.