Oracle Corp. has significantly ramped up share repurchases since the passage of the tax reform a year ago, with net share repurchases totaling $27 billion over the past four quarters. It has also stopped issuing new debt, but its balance sheet has swung to $9 billion in net debt today from $11 billion in net cash a year ago. Under our base-case scenario of nearly $5 billion of share repurchases per quarter going forward, coupled with the repayment of debt maturities, we expect Oracle to reach adjusted leverage near mid-1x during fiscal 2020 based on our adjustments to net surplus cash against debt. Oracle has a leading position in the relational database market with market share in excess of 40%.
