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.
Peer comparison
May 31, 2025