Oracle Corporation (ORCL)
Cash ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 10,454,000 | 9,765,000 | 21,383,000 | 30,098,000 | 37,239,000 |
| Short-term investments | US$ in thousands | 207,000 | 422,000 | 519,000 | 16,456,000 | 5,818,000 |
| Total current liabilities | US$ in thousands | 31,544,000 | 23,090,000 | 19,511,000 | 24,164,000 | 17,200,000 |
| Cash ratio | 0.34 | 0.44 | 1.12 | 1.93 | 2.50 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,454,000K
+ $207,000K)
÷ $31,544,000K
= 0.34
The cash ratio of Oracle Corporation has decreased over the past five years, from 2.50 in 2020 to 0.34 in 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened. A declining cash ratio may suggest that Oracle is less liquid and may be relying more on other sources of funding to meet its obligations. It is important for stakeholders to further investigate the reasons behind this decreasing trend and assess Oracle's overall liquidity position in order to make informed decisions.
Peer comparison
May 31, 2024