Oracle Corporation (ORCL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 10,454,000 | 9,481,000 | 8,244,000 | 11,613,000 | 9,765,000 | 8,219,000 | 6,813,000 | 10,448,000 | 21,383,000 | 22,682,000 | 17,938,000 | 23,059,000 | 30,098,000 | 22,321,000 | 28,001,000 | 27,276,000 | 37,239,000 | 23,829,000 | 24,540,000 | 31,083,000 |
| Short-term investments | US$ in thousands | 207,000 | 423,000 | 446,000 | 470,000 | 422,000 | 550,000 | 537,000 | 772,000 | 519,000 | 707,000 | 4,900,000 | 16,251,000 | 16,456,000 | 13,543,000 | 10,592,000 | 15,003,000 | 5,818,000 | 2,029,000 | 2,904,000 | 4,621,000 |
| 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 |
| Cash ratio | 0.34 | 0.40 | 0.36 | 0.48 | 0.44 | 0.38 | 0.27 | 0.32 | 1.12 | 1.12 | 1.21 | 1.70 | 1.93 | 1.77 | 1.81 | 2.26 | 2.50 | 1.64 | 1.88 | 1.89 |
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 shown fluctuation over the past few years, demonstrating the company's ability to cover its short-term liabilities with cash and near-cash assets.
The cash ratio was consistently above 1 from May 2020 to May 2022, indicating that Oracle had more than enough cash to cover its short-term obligations during this period. The ratio peaked at 2.50 in August 2020, indicating a substantial margin of safety in meeting current liabilities with cash and equivalents.
However, the ratio dropped significantly in the subsequent periods, falling below 1 from November 2022 to November 2023, suggesting that Oracle may have had a lower cash buffer to cover its short-term liabilities during these periods. The ratio declined to its lowest point of 0.27 in November 2022, indicating a potential liquidity strain.
In more recent periods, the cash ratio has shown some recovery, with values above 0.30. The ratio improved to 0.40 in February 2024, showing a better liquidity position compared to the previous decline.
Overall, it is important for Oracle Corporation to maintain a healthy cash ratio to ensure sufficient liquidity to meet its short-term obligations and manage potential financial risks effectively. Monitoring and managing cash flow and liquidity levels are vital for the company's financial health and stability.
Peer comparison
May 31, 2024