Oracle Corporation (ORCL)
Current ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 22,554,000 | 21,004,000 | 31,633,000 | 55,567,000 | 52,140,000 |
| Total current liabilities | US$ in thousands | 31,544,000 | 23,090,000 | 19,511,000 | 24,164,000 | 17,200,000 |
| Current ratio | 0.72 | 0.91 | 1.62 | 2.30 | 3.03 |
May 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $22,554,000K ÷ $31,544,000K
= 0.72
The current ratio of Oracle Corporation has been declining over the past five years. In May 2020, the current ratio was at its highest point of 3.03, indicating a strong ability to cover short-term obligations with current assets. However, the current ratio has steadily decreased since then, reaching 2.30 in May 2021, 1.62 in May 2022, 0.91 in May 2023, and 0.72 in May 2024.
A current ratio below 1 suggests that Oracle may have difficulties meeting its short-term obligations with its current assets alone. This decreasing trend in the current ratio could indicate potential liquidity issues or inefficiencies in managing current assets and liabilities. It is essential for Oracle to closely monitor its liquidity position and take proactive measures to improve its current ratio to ensure financial stability and meet its short-term obligations effectively.
Peer comparison
May 31, 2024