Oracle Corporation (ORCL)
Payables turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,550,000 | 14,674,000 | 15,418,000 | 10,884,000 | 11,167,000 |
| Payables | US$ in thousands | 2,357,000 | 1,204,000 | 1,317,000 | 745,000 | 637,000 |
| Payables turnover | 5.75 | 12.19 | 11.71 | 14.61 | 17.53 |
May 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $13,550,000K ÷ $2,357,000K
= 5.75
The payables turnover ratio for Oracle Corporation has decreased over the past five years, indicating a decline in how efficiently the company is managing its accounts payable.
In May 2020, the payables turnover ratio stood at 17.53, indicating that Oracle was able to turnover its accounts payable approximately 17.53 times during the year. However, this ratio has steadily decreased over the subsequent years to 14.61 in May 2021, 11.71 in May 2022, 12.19 in May 2023, and 5.75 in May 2024.
A lower payables turnover ratio suggests that Oracle is taking longer to pay off its suppliers or that it is carrying its payables for a longer period. This may have implications for the company's relationships with suppliers, cash flow management, and overall financial health. Further investigation into Oracle's payables management practices and supplier relationships may be warranted to understand the reasons behind the decreasing trend in the payables turnover ratio.
Peer comparison
May 31, 2024