Oracle Corporation (ORCL)

Days of sales outstanding (DSO)

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Receivables turnover		6.71	6.73	7.22	7.13	7.48
DSO	days	54.42	54.27	50.53	51.20	48.77

May 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.71
= 54.42

The analysis of Oracle Corporation's days of sales outstanding (DSO) over the period from May 31, 2021, to May 31, 2025, reveals a trend of incremental increase with some fluctuations.

As of May 31, 2021, the DSO was approximately 48.77 days, indicating the average time Oracle took to collect receivables was just under 49 days. By May 31, 2022, the DSO had risen to approximately 51.20 days, representing an increase of approximately 2.43 days or about 5%. This upward movement continued in subsequent periods, with the DSO reaching approximately 50.53 days by May 31, 2023, a slight decrease from the previous year, suggesting a marginal improvement in collections or changes in sales or credit policies.

However, from May 31, 2023, to May 31, 2024, the DSO increased again to approximately 54.27 days, indicating that Oracle's average collection period extended by about 3.74 days. The trend persisted into the forecasted period ending May 31, 2025, where the DSO slightly edged higher to approximately 54.42 days, an increase of roughly 0.15 days from the previous year.

Overall, the data indicates a gradual elongation in the collection period over the four-year span. The increase in DSO suggests that Oracle has experienced slight challenges in receivables collection efficiency or possibly has adopted more credit-friendly terms, leading to longer periods to convert receivables into cash. The trend of rising DSO should be monitored in conjunction with other liquidity and receivables management metrics to assess the impact on Oracle’s overall cash flow and liquidity position.