Oracle Corporation (ORCL)

Payables turnover

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
Cost of revenue (ttm) US$ in thousands 16,926,000 16,852,000 16,526,000 16,181,000 15,885,000 14,949,000 14,519,000 14,137,000 13,564,000 12,230,000 11,009,000 9,810,000 8,876,000 8,602,000 8,299,000 8,079,000 7,856,000 7,703,000 7,752,000 7,861,000
Payables US$ in thousands 5,113,000 2,423,000 2,679,000 2,207,000 2,357,000 1,658,000 1,107,000 1,034,000 1,204,000 1,610,000 1,647,000 1,461,000 1,317,000 1,124,000 1,034,000 749,000 745,000 812,000 724,000 534,000
Payables turnover 3.31 6.96 6.17 7.33 6.74 9.02 13.12 13.67 11.27 7.60 6.68 6.71 6.74 7.65 8.03 10.79 10.54 9.49 10.71 14.72

May 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,926,000K ÷ $5,113,000K
= 3.31

The payables turnover ratio for Oracle Corporation over the specified periods exhibits notable fluctuations, reflecting changes in the company’s payment practices and supplier relationships.

At the beginning of the period, as of August 31, 2020, the ratio was 14.72, indicating a relatively high frequency of paying off its accounts payable within a year. This high turnover suggests efficient management of payables or prompt payment strategies during that time.

Subsequently, there was a decline, reaching a low point of approximately 6.17 in November 2024. This decline over time could imply an elongation of payment cycles, possibly as a strategic decision to conserve cash or negotiate more favorable payment terms with suppliers.

Conversely, notable increases occurred at certain intervals, such as the rise to 13.67 by August 31, 2023, and further to 13.12 as of November 30, 2023. These increases suggest periods where Oracle has accelerated its payments to suppliers, which may be motivated by improved liquidity, strategic supplier relationships, or changes in credit policies.

The ratio's fluctuations from a high of 14.72 to a low of 3.31, observed as of May 31, 2025, reflect dynamic management of payables possibly influenced by broader market conditions, operational strategies, and liquidity considerations.

Overall, the data demonstrate a trend of decreasing payables turnover over the period, punctuated by periods of renewed higher turnover. This pattern highlights the company's shifting approach to managing its short-term obligations, balancing liquidity needs with supplier payment terms.


See also:

Oracle Corporation Payables Turnover (Quarterly Data)