Analysis of Liquidity Ratios
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Oracle Corp., liquidity ratios
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Oracle Corp.’s current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Oracle Corp.’s quick ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Oracle Corp.’s cash ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Current Ratio
Oracle Corp., current ratio calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 52,140 | 46,386 | 75,964 | 74,515 | 64,313 | 63,183 | |
| Current liabilities | 17,200 | 18,630 | 19,195 | 24,178 | 17,208 | 15,291 | |
| Liquidity Ratio | |||||||
| Current ratio1 | 3.03 | 2.49 | 3.96 | 3.08 | 3.74 | 4.13 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Adobe Inc. | 1.48 | 0.79 | 1.13 | 2.05 | 2.08 | 2.18 | |
| Alphabet Inc. | — | 3.37 | 3.92 | 5.14 | 6.29 | 4.67 | |
| Autodesk Inc. | 0.83 | 0.70 | 0.88 | 1.13 | 1.88 | 1.91 | |
| Facebook Inc. | — | 4.40 | 7.19 | 12.92 | 11.97 | 11.25 | |
| International Business Machines Corp. | — | 1.02 | 1.29 | 1.33 | 1.21 | 1.24 | |
| Intuit Inc. | 2.26 | 1.83 | 1.14 | 0.73 | 0.72 | 1.47 | |
| Microsoft Corp. | 2.52 | 2.53 | 2.90 | 2.48 | 2.35 | 2.50 | |
| salesforce.com inc. | 1.08 | 0.95 | 0.92 | 0.83 | 0.77 | 0.81 | |
| ServiceNow Inc. | — | 1.03 | 1.17 | 1.15 | 1.25 | 1.48 | |
| Current Ratio, Sector | |||||||
| Software & Computer Services | — | 2.37 | 2.81 | 2.79 | 2.77 | 2.72 | |
| Current Ratio, Industry | |||||||
| Technology | — | 2.04 | 2.17 | 2.39 | 2.36 | 2.30 | |
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 52,140 ÷ 17,200 = 3.03
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Oracle Corp.’s current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Quick Ratio
Oracle Corp., quick ratio calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 37,239 | 20,514 | 21,620 | 21,784 | 20,152 | 21,716 | |
| Marketable securities | 5,818 | 17,313 | 45,641 | 44,294 | 35,973 | 32,652 | |
| Trade receivables, net of allowances for doubtful accounts | 5,551 | 5,134 | 5,279 | 5,300 | 5,385 | 5,618 | |
| Total quick assets | 48,608 | 42,961 | 72,540 | 71,378 | 61,510 | 59,986 | |
| Current liabilities | 17,200 | 18,630 | 19,195 | 24,178 | 17,208 | 15,291 | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 2.83 | 2.31 | 3.78 | 2.95 | 3.57 | 3.92 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Adobe Inc. | 1.34 | 0.70 | 1.06 | 2.00 | 1.99 | 2.11 | |
| Alphabet Inc. | — | 3.21 | 3.75 | 4.97 | 6.00 | 4.38 | |
| Autodesk Inc. | 0.78 | 0.62 | 0.83 | 1.08 | 1.83 | 1.78 | |
| Facebook Inc. | — | 4.28 | 6.94 | 12.64 | 11.63 | 10.91 | |
| International Business Machines Corp. | — | 0.87 | 1.12 | 1.19 | 1.04 | 1.07 | |
| Intuit Inc. | 2.04 | 1.44 | 0.86 | 0.45 | 0.53 | 1.03 | |
| Microsoft Corp. | 2.33 | 2.35 | 2.74 | 2.37 | 2.22 | 2.30 | |
| salesforce.com inc. | 0.95 | 0.82 | 0.83 | 0.74 | 0.68 | 0.66 | |
| ServiceNow Inc. | — | 0.92 | 1.03 | 1.05 | 1.14 | 1.37 | |
| Quick Ratio, Sector | |||||||
| Software & Computer Services | — | 2.21 | 2.65 | 2.66 | 2.60 | 2.51 | |
| Quick Ratio, Industry | |||||||
| Technology | — | 1.83 | 1.96 | 2.18 | 2.14 | 2.03 | |
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 48,608 ÷ 17,200 = 2.83
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Oracle Corp.’s quick ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Cash Ratio
Oracle Corp., cash ratio calculation, comparison to benchmarks
| May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 37,239 | 20,514 | 21,620 | 21,784 | 20,152 | 21,716 | |
| Marketable securities | 5,818 | 17,313 | 45,641 | 44,294 | 35,973 | 32,652 | |
| Total cash assets | 43,057 | 37,827 | 67,261 | 66,078 | 56,125 | 54,368 | |
| Current liabilities | 17,200 | 18,630 | 19,195 | 24,178 | 17,208 | 15,291 | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 2.50 | 2.03 | 3.50 | 2.73 | 3.26 | 3.56 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Adobe Inc. | 1.09 | 0.51 | 0.75 | 1.65 | 1.69 | 1.80 | |
| Alphabet Inc. | — | 2.65 | 3.15 | 4.21 | 5.15 | 3.78 | |
| Autodesk Inc. | 0.57 | 0.41 | 0.62 | 0.87 | 1.41 | 1.45 | |
| Facebook Inc. | — | 3.64 | 5.86 | 11.09 | 10.24 | 9.58 | |
| International Business Machines Corp. | — | 0.24 | 0.32 | 0.34 | 0.24 | 0.24 | |
| Intuit Inc. | 2.00 | 1.39 | 0.81 | 0.40 | 0.48 | 0.97 | |
| Microsoft Corp. | 1.89 | 1.93 | 2.29 | 2.06 | 1.91 | 1.94 | |
| salesforce.com inc. | 0.54 | 0.39 | 0.45 | 0.30 | 0.24 | 0.23 | |
| ServiceNow Inc. | — | 0.61 | 0.74 | 0.85 | 0.84 | 1.10 | |
| Cash Ratio, Sector | |||||||
| Software & Computer Services | — | 1.74 | 2.11 | 2.15 | 2.08 | 1.98 | |
| Cash Ratio, Industry | |||||||
| Technology | — | 1.38 | 1.47 | 1.74 | 1.69 | 1.57 | |
Based on: 10-K (filing date: 2020-06-22), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25).
1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 43,057 ÷ 17,200 = 2.50
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Oracle Corp.’s cash ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |