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.


See also:

Oracle Corporation Current Ratio (Quarterly Data)