Oracle Corporation (ORCL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 10,786,000 | 17,406,000 | 10,941,000 | 10,616,000 | 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 |
| Short-term investments | US$ in thousands | 417,000 | 417,000 | 370,000 | 295,000 | 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 |
| 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 |
| Cash ratio | 0.34 | 0.60 | 0.39 | 0.34 | 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 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,786,000K
+ $417,000K)
÷ $32,643,000K
= 0.34
The analysis of Oracle Corporation’s cash ratio over the provided period reveals notable fluctuations that reflect changes in the company's short-term liquidity position. The cash ratio, which measures a company's capacity to meet its short-term liabilities exclusively with its cash and cash equivalents, was relatively high at 2.26 as of August 31, 2020. This indicates a robust liquidity buffer, substantially exceeding the current liabilities.
Through subsequent quarters, a declining trend can be observed, reaching a low of 0.27 on November 30, 2022. This substantial decrease suggests a significant reduction in Oracle’s immediate liquidity position, implying that the company relied less heavily on cash reserves relative to its short-term liabilities during this period.
Post-November 2022, the cash ratio exhibits a modest recovery, increasing to 0.38 by February 28, 2023, and continuing an upward trajectory to a peak of 0.60 by February 28, 2025. This upward trend indicates an improvement in liquidity, although the ratio remains below the initial levels observed in 2020, signaling a more conservative liquidity stance compared to earlier years.
Overall, the data signifies a notable reduction in Oracle’s cash ratio from 2020 through late 2022, followed by a partial recovery in subsequent periods. This pattern may reflect strategic shifts in cash management, changes in short-term obligations, or alterations in operational cash flows. The sustained lower ratio post-2022 suggests a potential emphasis on using cash for operational or investment purposes, while the upward movement toward 2025 indicates a possible replenishment or tightening of liquidity management.
Peer comparison
May 31, 2025