Oracle Corporation (ORCL)

Working capital 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
Revenue (ttm) US$ in thousands 57,399,000 55,783,000 54,933,000 53,815,000 52,961,000 52,510,000 51,628,000 50,962,000 49,954,000 47,958,000 46,073,000 44,158,000 42,441,000 41,828,000 41,400,000 40,840,000 40,479,000 39,691,000 39,402,000 39,216,000
Total current assets US$ in thousands 24,579,000 30,116,000 23,503,000 23,072,000 22,554,000 21,063,000 19,289,000 22,166,000 21,004,000 18,696,000 17,561,000 21,004,000 31,633,000 31,675,000 31,078,000 47,117,000 55,567,000 43,744,000 46,251,000 49,939,000
Total current liabilities US$ in thousands 32,643,000 29,623,000 29,052,000 32,045,000 31,544,000 24,885,000 24,407,000 25,357,000 23,090,000 22,880,000 27,106,000 34,819,000 19,511,000 20,833,000 18,881,000 23,071,000 24,164,000 20,250,000 21,347,000 18,748,000
Working capital turnover 113.15 3.50 3.86 3.39 1.70 1.29 1.69 1.58 1.26

May 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $57,399,000K ÷ ($24,579,000K – $32,643,000K)
= —

The analysis of Oracle Corporation's working capital turnover ratio over the specified periods reveals notable fluctuations and trends. From August 2020 to February 2021, the ratio increased from 1.26 to 1.69, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales or revenue. This upward trend continued into August 2021, reaching 1.70, further supporting the notion of enhanced operational efficiency during that timeframe.

A significant surge is observed between November 2021 and February 2022, where the ratio escalated from 3.39 to 3.86. This sharp increase suggests a substantial improvement in working capital management or sales performance relative to the company's working capital during this period. The ratio then remains relatively high, with a slight decline to 3.50 by May 2022, indicating sustained efficiency, albeit at a marginally reduced level.

Subsequent data points from August 2022 through August 2023 are unavailable, providing no further insights into changes during that interval. However, a remarkable outlier appears in February 2025, where the working capital turnover ratio spikes dramatically to 113.15. This extraordinary value implies a major shift—potentially reflecting a one-time adjustment, a change in financial reporting or calculation methods, or a significant operational event—that led to an exceptionally high efficiency metric.

Overall, the observed pattern illustrates periods of consistent improvement in working capital utilization culminating in a historical peak in early 2025. The periods with missing data limit comprehensive trend analysis beyond early 2022, but the available figures depict a trajectory of increasing efficiency with a notable anomaly at the end of the observed timeline.


See also:

Oracle Corporation Working Capital Turnover (Quarterly Data)