Oracle Corporation (ORCL)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	40.56	—	—	—	49.24	—	—	—	49.10	—	—	—	76.65	—	—	—	52.92	—	—	—
Receivables turnover	6.73	7.19	7.57	7.80	7.22	12.20	11.97	12.21	11.91	15.02	15.37	15.20	12.54	14.33	14.98	14.47	11.92	16.00	16.39	17.35
Payables turnover	5.75	8.35	12.63	13.84	12.19	8.64	7.90	11.36	11.71	13.60	14.80	14.30	14.61	13.20	14.99	20.65	17.53	22.02	22.00	24.44
Working capital turnover	—	—	—	—	—	—	—	—	5.85	6.36	5.62	2.83	2.16	2.83	2.66	2.12	1.89	3.76	3.33	2.82

Oracle Corporation's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

The inventory turnover ratio has shown fluctuations over the periods provided, ranging from a high of 76.65 to a low of 40.56. A high inventory turnover ratio indicates that Oracle is efficiently selling its inventory and restocking it quickly.

The receivables turnover ratio has also varied, with higher ratios generally indicating that Oracle is collecting its accounts receivable more quickly. This ratio has ranged from 6.73 to 17.35 over the periods provided, showing some volatility.

On the other hand, the payables turnover ratio has exhibited a more consistent trend, with values fluctuating between 5.75 and 24.44. A higher payables turnover ratio indicates that Oracle is paying its suppliers more quickly.

The working capital turnover ratio, when available, indicates how effectively Oracle is using its working capital to generate sales. The trend in this ratio has been inconsistent, with values ranging from 1.89 to 6.36. A higher working capital turnover ratio typically suggests better efficiency in utilizing working capital.

Overall, analyzing these activity ratios can help assess Oracle Corporation's overall operational efficiency and effectiveness in managing its inventory, receivables, payables, and working capital over time.

Average number of days

		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
Days of inventory on hand (DOH)	days	9.00	—	—	—	7.41	—	—	—	7.43	—	—	—	4.76	—	—	—	6.90	—	—	—
Days of sales outstanding (DSO)	days	54.27	50.80	48.20	46.78	50.53	29.91	30.48	29.90	30.66	24.30	23.75	24.01	29.10	25.48	24.37	25.23	30.62	22.81	22.26	21.03
Number of days of payables	days	63.50	43.74	28.91	26.37	29.95	42.25	46.20	32.13	31.18	26.83	24.66	25.52	24.98	27.65	24.35	17.68	20.82	16.57	16.59	14.93

Days of inventory on hand (DOH) measures how many days it takes for a company to sell its inventory. Oracle's DOH has been fluctuating, ranging from around 4.76 days to 9.00 days over the past few quarters. A lower DOH indicates more efficient inventory management.

Days of sales outstanding (DSO) reflects the average number of days it takes for a company to collect revenue after a sale. Oracle's DSO has varied between approximately 21.03 days to 54.27 days. A lower DSO suggests better cash flow management and efficient collection practices.

Number of days of payables indicates how long a company takes to pay its suppliers. Oracle's payables days have been inconsistent, ranging from about 16.57 days to 63.50 days. A longer payable period can indicate strong bargaining power with suppliers but can also signal liquidity issues if too long.

Overall, Oracle has shown fluctuations in its activity ratios, suggesting changes in its operational efficiency and working capital management over the quarters. It is important for Oracle to closely monitor these ratios to optimize its inventory levels, cash flow, and vendor payment strategies.

Long-term

	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
Fixed asset turnover	2.46	2.74	2.86	2.88	2.93	4.64	5.17	5.90	7.30	8.01	8.54	8.95	9.63	9.75	10.00	10.34	10.60	10.66	10.59	10.58
Total asset turnover	0.38	0.38	0.38	0.37	0.37	0.58	0.58	0.56	0.65	0.63	0.64	0.55	0.52	0.56	0.60	0.58	0.57	0.69	0.67	0.62

Oracle Corporation's fixed asset turnover has been fluctuating over the past few quarters, ranging from a low of 2.46 to a high of 10.66. This ratio indicates that the company generates between $2.46 and $10.66 in revenue for every dollar invested in fixed assets.

On the other hand, the total asset turnover has also seen variations, with values ranging from 0.37 to 0.69. This ratio reflects Oracle's ability to generate sales from all its assets, including fixed and current assets. A total asset turnover of less than 1 suggests that the company is not efficiently utilizing its assets to generate revenue.

Overall, the trends in both fixed asset turnover and total asset turnover ratios suggest that Oracle Corporation has been effectively managing its assets to generate revenue, with periods of both efficiency and fluctuation in asset utilization. Further analysis of the company's operational performance and asset management strategies would be necessary to fully evaluate the implications of these ratios on Oracle's financial performance.