Microsoft Excel LibreOffice Calc

Oracle Corp. (ORCL)

Liquidity Analysis

Difficulty: Beginner

Liquidity ratios measure the company’s ability to meet its short-term obligations.

Ratios (Summary)

Oracle Corp., liquidity ratios

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Current ratio 2.49 3.96 3.08 3.74 4.13 3.35
Quick ratio 2.31 3.78 2.95 3.57 3.92 3.12
Cash ratio 2.03 3.50 2.73 3.26 3.56 2.70

Based on: 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), 10-K (filing date: 2014-06-26).

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Oracle Corp.’s current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Oracle Corp.’s quick ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Oracle Corp.’s cash ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Current Ratio

Oracle Corp., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (USD $ in millions)
Current assets 46,386  75,964  74,515  64,313  63,183  48,138 
Current liabilities 18,630  19,195  24,178  17,208  15,291  14,389 
Ratio
Current ratio1 2.49 3.96 3.08 3.74 4.13 3.35
Benchmarks
Current Ratio, Competitors
Adobe Inc. — 1.13 2.05 2.08 2.18 1.85
Alphabet Inc. — 3.92 5.14 6.29 4.67 4.80
Facebook Inc. — 7.19 12.92 11.97 11.25 9.60
International Business Machines Corp. — 1.29 1.33 1.21 1.24 1.25
Intuit Inc. — 1.14 0.73 0.72 1.47 1.84
Microsoft Corp. — 2.90 2.48 2.35 2.50 2.50
salesforce.com inc. 0.95 0.92 0.83 0.77 0.81 0.67
Current Ratio, Sector
Software & Computer Services — 2.86 2.83 2.79 2.74 2.51
Current Ratio, Industry
Technology — 2.09 2.31 2.27 2.16 2.04

Based on: 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), 10-K (filing date: 2014-06-26).

2019 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 46,386 ÷ 18,630 = 2.49

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Oracle Corp.’s current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Quick Ratio

Oracle Corp., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 20,514  21,620  21,784  20,152  21,716  17,769 
Marketable securities 17,313  45,641  44,294  35,973  32,652  21,050 
Trade receivables, net of allowances for doubtful accounts 5,134  5,279  5,300  5,385  5,618  6,087 
Total quick assets 42,961  72,540  71,378  61,510  59,986  44,906 
Current liabilities 18,630  19,195  24,178  17,208  15,291  14,389 
Ratio
Quick ratio1 2.31 3.78 2.95 3.57 3.92 3.12
Benchmarks
Quick Ratio, Competitors
Adobe Inc. — 1.06 2.00 1.99 2.11 1.74
Alphabet Inc. — 3.75 4.97 6.00 4.38 4.39
Facebook Inc. — 6.94 12.64 11.63 10.91 9.04
International Business Machines Corp. — 1.12 1.19 1.04 1.07 1.02
Intuit Inc. — 0.86 0.45 0.53 1.03 1.44
Microsoft Corp. — 2.74 2.37 2.22 2.30 2.31
salesforce.com inc. 0.82 0.83 0.74 0.68 0.66 0.55
Quick Ratio, Sector
Software & Computer Services — 2.69 2.70 2.62 2.53 2.27
Quick Ratio, Industry
Technology — 1.87 2.10 2.04 1.87 1.73

Based on: 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), 10-K (filing date: 2014-06-26).

2019 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 42,961 ÷ 18,630 = 2.31

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Cash Ratio

Oracle Corp., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 20,514  21,620  21,784  20,152  21,716  17,769 
Marketable securities 17,313  45,641  44,294  35,973  32,652  21,050 
Total cash assets 37,827  67,261  66,078  56,125  54,368  38,819 
Current liabilities 18,630  19,195  24,178  17,208  15,291  14,389 
Ratio
Cash ratio1 2.03 3.50 2.73 3.26 3.56 2.70
Benchmarks
Cash Ratio, Competitors
Adobe Inc. — 0.75 1.65 1.69 1.80 1.50
Alphabet Inc. — 3.15 4.21 5.15 3.78 3.83
Facebook Inc. — 5.86 11.09 10.24 9.58 7.86
International Business Machines Corp. — 0.32 0.34 0.24 0.24 0.21
Intuit Inc. — 0.81 0.40 0.48 0.97 1.35
Microsoft Corp. — 2.29 2.06 1.91 1.94 1.88
salesforce.com inc. 0.39 0.45 0.30 0.24 0.23 0.21
Cash Ratio, Sector
Software & Computer Services — 2.14 2.18 2.10 1.99 1.71
Cash Ratio, Industry
Technology — 1.40 1.67 1.61 1.42 1.25

Based on: 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), 10-K (filing date: 2014-06-26).

2019 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 37,827 ÷ 18,630 = 2.03

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.