Oracle Corporation (ORCL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 10,786,000 | 17,406,000 | 10,941,000 | 10,616,000 | 10,454,000 | 9,481,000 | 8,244,000 | 11,613,000 | 9,765,000 | 8,219,000 | 6,813,000 | 10,448,000 | 21,383,000 | 22,682,000 | 17,938,000 | 23,059,000 | 30,098,000 | 22,321,000 | 28,001,000 | 27,276,000 |
| Short-term investments | US$ in thousands | 417,000 | 417,000 | 370,000 | 295,000 | 207,000 | 423,000 | 446,000 | 470,000 | 422,000 | 550,000 | 537,000 | 772,000 | 519,000 | 707,000 | 4,900,000 | 16,251,000 | 16,456,000 | 13,543,000 | 10,592,000 | 15,003,000 |
| Receivables | US$ in thousands | 8,558,000 | 8,051,000 | 8,177,000 | 8,021,000 | 7,874,000 | 7,297,000 | 6,804,000 | 6,519,000 | 6,915,000 | 6,213,000 | 6,197,000 | 5,937,000 | 5,953,000 | 4,588,000 | 4,462,000 | 4,482,000 | 5,409,000 | 4,637,000 | 4,423,000 | 4,576,000 |
| 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 |
| Quick ratio | 0.61 | 0.87 | 0.67 | 0.59 | 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 |
May 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($10,786,000K
+ $417,000K
+ $8,558,000K)
÷ $32,643,000K
= 0.61
The analysis of Oracle Corporation’s quick ratio over the specified period reveals several key trends and insights.
Initially, at the end of August 2020, the quick ratio stood at a robust 2.50, indicating a strong liquidity position with sufficient liquid assets to cover current liabilities nearly two and a half times. During the subsequent quarters, the quick ratio experienced a gradual decline, reaching 2.02 in November 2020 and slightly decreasing to 2.00 by February 2021. A modest increase occurred thereafter, with the ratio peaking again around 2.15 in May 2021.
However, post-May 2021, a notable downward trend commenced. The ratio fell to 1.90 in August 2021 and further declined to 1.45 in November 2021. This downward trajectory continued through 2022, with ratios of 1.34 in February, 1.43 in May, and significantly decreasing to 0.49 by August 2022, signaling a substantial reduction in liquidity. Throughout the latter part of 2022 and into 2023, the ratios stabilized somewhat at lower levels, oscillating slightly around 0.50 to 0.75. Notably, the ratio increased marginally to 0.65 in February 2023, then maintained around 0.70 in May and August 2023, indicating some recovery trend.
Moving into late 2023 and early 2024, the quick ratio fluctuated within a narrow range, with values of approximately 0.63 to 0.69, suggesting a relatively stable but still modest liquidity position. The ratio further rose to 0.87 by February 2025 before declining again to 0.61 in May 2025.
Overall, the initial period reflects a high liquidity buffer, but a pronounced decline from late 2021 onwards indicates a reduction in liquidity relative to current liabilities. The ongoing fluctuations suggest periods of stabilization but generally persistent lower levels compared to the early years. This dynamic pattern may reflect changes in the company’s current assets composition, operational strategies, or liquidity management practices over the analyzed timeframe.
Peer comparison
May 31, 2025