Oracle Corporation (ORCL)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 24,579,000 | 30,116,000 | 23,503,000 | 23,072,000 | 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 |
| 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 |
| Current ratio | 0.75 | 1.02 | 0.81 | 0.72 | 0.72 | 0.85 | 0.79 | 0.87 | 0.91 | 0.82 | 0.65 | 0.60 | 1.62 | 1.52 | 1.65 | 2.04 | 2.30 | 2.16 | 2.17 | 2.66 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $24,579,000K ÷ $32,643,000K
= 0.75
The analysis of Oracle Corporation's current ratio over the specified periods reveals significant fluctuations and a notable overall decline from the beginning of the observed timeframe in August 2020 to the most recent data in May 2025.
Initially, the company's current ratio was relatively high at 2.66 in August 2020, indicating a strong liquidity position with more than twice the current assets compared to current liabilities. Over subsequent quarters, the current ratio experienced a downward trend, with some intermittent increases. For example, there was a decline to 2.17 in November 2020 and further reductions to around 2.16 in February 2021, and then to 2.04 in August 2021.
Starting from late 2021, a more pronounced decrease is observable, with ratios falling to 1.65 in November 2021 and reaching as low as 0.60 in August 2022. This sharp decline continues into late 2022 and early 2023, with ratios oscillating slightly but remaining below 1, such as 0.65 in November 2022, 0.82 in February 2023, and 0.91 in May 2023. The lowest point in the period appears to be around 0.60 in August 2022, signaling a potential liquidity concern at that time.
Following this, some improvement is visible, with the ratio rising to approximately 0.85 in February 2024 and maintaining around 0.72 to 0.81 in subsequent quarters through late 2024 and early 2025. By the end of the period in May 2025, the ratio stands at approximately 0.75.
In summary, Oracle's current ratio has exhibited a declining trend over the period, particularly from mid-2021 onward, with periods of partial recovery. The fluctuation suggests varying liquidity positions over time, and when compared to the initial high ratio, the company currently maintains a more modest level of liquidity relative to its short-term liabilities. The persistent decline below the 1.0 threshold for an extended period may imply increased liquidity risk or changes in operational strategy, warranting further investigation into the company's current asset management and liability structure.
Peer comparison
May 31, 2025