Oracle Corporation (ORCL)

Inventory turnover

		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	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Cost of revenue (ttm)	US$ in thousands	13,548,000	13,837,000	13,977,000	14,312,000	14,673,000	13,909,000	13,013,000	16,596,000	15,418,000	15,291,000	15,305,000	10,711,000	10,884,000	10,718,000	10,851,000	11,026,000	11,166,000	11,738,000	11,747,000	11,880,000
Inventory	US$ in thousands	334,000	—	—	—	298,000	—	—	—	314,000	—	—	—	142,000	-10,000	-17,000	-24,000	211,000	—	—	—
Inventory turnover		40.56	—	—	—	49.24	—	—	—	49.10	—	—	—	76.65	—	—	—	52.92	—	—	—

May 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $13,548,000K ÷ $334,000K
= 40.56

Oracle Corporation's inventory turnover has exhibited fluctuations over the past few quarters, indicating varying efficiency in managing its inventory. The inventory turnover ratio peaked at 76.65 in February 2021, reflecting the company's ability to sell and replace its inventory multiple times during the period. Subsequently, there was a decline in the ratio to 40.56 in May 2021, suggesting a potential slowdown in inventory management.

The lack of inventory turnover data for several periods indicates inconsistent reporting but signifies that the company may be adjusting its inventory management strategies. Overall, a higher inventory turnover ratio is generally favorable as it implies that Oracle is efficiently selling through its stock, generating revenue, and avoiding excess inventory holding costs. Monitoring future trends in the inventory turnover ratio will be key to assessing Oracle's effectiveness in managing its inventory levels.