Oracle Corporation (ORCL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 3.03 | 2.12 | 2.37 | 2.25 |
| Quick ratio | 0.59 | 0.69 | 0.63 | 0.73 | 0.74 | 0.65 | 0.50 | 0.49 | 1.43 | 1.34 | 1.45 | 1.90 | 2.15 | 2.00 | 2.02 | 2.50 | 2.83 | 1.91 | 2.16 | 2.09 |
| 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 |
Oracle Corporation's liquidity ratios have fluctuated over the past few quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has shown a declining trend from May 2021 to May 2024, indicating potential challenges in meeting immediate obligations. However, the ratio improved in the most recent quarter compared to the previous quarter.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, follows a similar pattern as the current ratio. It has also slightly improved in the most recent quarter, but overall, there seems to be a decline in liquidity from May 2021 to May 2024.
The cash ratio, representing the company's ability to cover current liabilities with cash and equivalents, has shown fluctuations but generally depicts a declining trend over the past few quarters. Similar to the current and quick ratios, the cash ratio improved slightly in the most recent quarter compared to the previous quarter.
Overall, Oracle Corporation's liquidity ratios suggest a need for the company to closely monitor its ability to meet short-term obligations, manage its working capital effectively, and ensure sufficient cash reserves to cover liabilities.
See also:
Additional liquidity measure
| 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 conversion cycle | days | -0.23 | 7.06 | 19.29 | 20.41 | 27.99 | -12.34 | -15.72 | -2.23 | 6.91 | -2.53 | -0.91 | -1.51 | 8.88 | -2.18 | 0.01 | 7.55 | 16.70 | 6.23 | 5.67 | 6.10 |
The cash conversion cycle of Oracle Corporation has been fluctuating over the past few quarters. It indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
Looking at the data provided, we can see that Oracle had negative cash conversion cycles in some quarters, which can be interpreted as efficient cash management. However, there are also periods where the cash conversion cycle was positive, indicating a longer time to convert resources into cash.
Overall, there seems to be some variability in Oracle's cash conversion cycle, with some quarters showing more efficient management of working capital than others. It would be essential for the company to analyze the factors contributing to these fluctuations and work towards optimizing their working capital management to improve cash flow efficiency.