Oracle Corporation (ORCL)
Quick ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 10,454,000 | 9,765,000 | 21,383,000 | 30,098,000 | 37,239,000 |
| Short-term investments | US$ in thousands | 207,000 | 422,000 | 519,000 | 16,456,000 | 5,818,000 |
| Receivables | US$ in thousands | 7,874,000 | 6,915,000 | 5,953,000 | 5,409,000 | 5,551,000 |
| Total current liabilities | US$ in thousands | 31,544,000 | 23,090,000 | 19,511,000 | 24,164,000 | 17,200,000 |
| Quick ratio | 0.59 | 0.74 | 1.43 | 2.15 | 2.83 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($10,454,000K
+ $207,000K
+ $7,874,000K)
÷ $31,544,000K
= 0.59
The quick ratio of Oracle Corporation has shown a declining trend over the past five years, indicating a potential weakening of the company's ability to meet its short-term obligations with its most liquid assets. In 2020, the quick ratio was relatively strong at 2.83, suggesting a healthy liquidity position. However, there has been a consistent decrease in the quick ratio over the subsequent years, reaching 0.59 in 2024. This substantial drop reflects a significant reduction in Oracle's ability to cover its current liabilities with its quick assets, such as cash and accounts receivable, which may raise concerns about the company's short-term financial health and its ability to manage liquidity effectively. It is crucial for Oracle to monitor and improve its liquidity position to ensure it can meet its short-term obligations in a timely manner.
Peer comparison
May 31, 2024