Oracle Corporation (ORCL)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	52,960,000	52,432,000	51,522,000	50,865,000	49,953,000	75,826,000	74,208,000	72,479,000	70,880,000	68,919,000	68,584,000	68,133,000	67,848,000	66,437,000	66,252,000	66,195,000	66,165,000	66,603,000	66,398,000	66,292,000
Total current assets	US$ in thousands	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	52,140,000	33,442,000	34,540,000	42,384,000
Total current liabilities	US$ in thousands	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	17,200,000	15,740,000	14,592,000	18,875,000
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

May 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $52,960,000K ÷ ($22,554,000K – $31,544,000K)
= —

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher working capital turnover indicates that the company is effectively managing its working capital and generating more revenue with the resources at its disposal.

Based on the provided data for Oracle Corporation, we observe fluctuations in the working capital turnover ratio over the periods presented. In the most recent periods, the working capital turnover has been relatively stable at around 5.85 in May 2022 and 6.36 in February 2022, signifying a high level of efficiency in utilizing its working capital to generate sales.

However, if we look further back, the working capital turnover ratio for Oracle has fluctuated significantly, ranging from 2.12 in August 2020 to a peak of 6.36 in February 2022. These fluctuations may indicate changes in the company's operating efficiency, investment in working capital, or revenue generation strategies during the respective periods.

Overall, the upward trend in the working capital turnover ratio for Oracle over the recent periods suggests improved efficiency in managing working capital and generating sales. It is essential for investors and analysts to monitor this ratio to assess the company's ability to efficiently utilize its working capital resources and drive revenue growth.