Oracle Corporation (ORCL)
Working capital turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 52,961,000 | 49,954,000 | 42,440,000 | 40,479,000 | 36,904,000 |
| Total current assets | US$ in thousands | 22,554,000 | 21,004,000 | 31,633,000 | 55,567,000 | 52,140,000 |
| Total current liabilities | US$ in thousands | 31,544,000 | 23,090,000 | 19,511,000 | 24,164,000 | 17,200,000 |
| Working capital turnover | — | — | 3.50 | 1.29 | 1.06 |
May 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $52,961,000K ÷ ($22,554,000K – $31,544,000K)
= —
The working capital turnover ratio measures how efficiently a company is able to use its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
Looking at the data provided for Oracle Corporation:
- In 2022, the working capital turnover ratio was 3.50, which shows a significant improvement from the previous year. This indicates that Oracle was able to generate $3.50 in sales for every $1 of working capital invested, reflecting efficient utilization of its working capital to drive sales.
- In 2021, the ratio was 1.29, showing an improvement compared to the previous year but still not as high as in 2022. This suggests that Oracle was able to generate $1.29 in sales for every $1 of working capital in that year.
- In 2020, the ratio was 1.06, indicating that Oracle generated $1.06 in sales for every $1 of working capital invested. This reflects slightly lower efficiency in utilizing working capital compared to the subsequent years.
Overall, the trend in Oracle's working capital turnover ratio shows an improvement in efficiency in recent years, with a peak in 2022. This indicates that Oracle has been able to effectively manage its working capital to drive sales growth and improve operational efficiency.
Peer comparison
May 31, 2024