Oracle Corporation (ORCL)

Days of sales outstanding (DSO)

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020
Receivables turnover		6.71	6.93	6.72	6.71	6.73	7.20	7.59	7.82	7.22	7.72	7.43	7.44	7.13	9.12	9.28	9.11	7.48	8.56	8.91	8.57
DSO	days	54.42	52.68	54.33	54.40	54.27	50.72	48.10	46.69	50.53	47.29	49.09	49.07	51.20	40.04	39.34	40.06	48.77	42.64	40.97	42.59

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 August 31, 2020, through May 31, 2025, reveals notable fluctuations indicative of the company’s receivables collection efficiency.

Initially, the DSO remained relatively consistent, averaging approximately 42 days during the fiscal years 2020 and early 2021, with values such as 42.59 days in August 2020, and reaching a high of 48.77 days in May 2021. This period reflects a stable receivables cycle with manageable collection periods.

Subsequently, a decline is observed: from late 2021 through early 2022, DSO decreased to around 39.34 days in November 2021 and remained close to 40 days into February 2022. This suggests an improvement in collection efficiency and potentially more favorable credit terms or enhanced receivables management during that timeframe.

Starting from mid-2022, a gradual upward trend emerges. May 2022's DSO increased to 51.20 days, and this upward trajectory persisted into subsequent quarters, reaching approximately 49.07 days in August 2022. The DSO then stayed elevated, fluctuating slightly around 49 days into late 2022.

From early 2023 onward, DSO continued to rise, culminating in a significant increase to about 50.72 days in February 2024. The trend persisted into 2025, with values such as 52.68 days in February 2025 and approximately 54.42 days in May 2025. This ongoing increase indicates a lengthening of the average collection period over the recent years.

Overall, the pattern indicates that Oracle’s receivables collection cycle has generally lengthened over the analyzed period. The rising DSO suggests a potential loosening of credit terms, slower collection processes, or changes in customer payment behaviors. The considerable expansion from approximately 42 days in early years to over 54 days in 2025 points toward an increased latency in converting receivables into cash, which might impact the company’s liquidity or working capital management if trends continue.