Stock Analysis on Net
Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

Oracle Corp., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Turnover Ratios
Inventory turnover 55.32 37.62 24.98 20.30 24.90 35.28
Receivables turnover 7.48 7.04 7.69 7.55 7.12 6.88
Payables turnover 10.54 12.46 13.78 15.28 12.47 14.84
Working capital turnover 1.29 1.12 1.42 0.70 0.75 0.79
Average No. Days
Average inventory processing period 7 10 15 18 15 10
Add: Average receivable collection period 49 52 47 48 51 53
Operating cycle 56 62 62 66 66 63
Less: Average payables payment period 35 29 26 24 29 25
Cash conversion cycle 21 33 36 42 37 38

Based on: 10-K (filing date: 2021-06-21), 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Oracle Corp.’s inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. Oracle Corp.’s receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Oracle Corp.’s payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Oracle Corp.’s working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Oracle Corp.’s number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Oracle Corp.’s number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Oracle Corp.’s number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Oracle Corp.’s cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021.

Inventory Turnover

Oracle Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Cost of revenues 7,855  7,938  7,995  8,081  7,469  7,479 
Inventories 142  211  320  398  300  212 
Short-term Activity Ratio
Inventory turnover1 55.32 37.62 24.98 20.30 24.90 35.28
Benchmarks
Inventory Turnover, Competitors2
International Business Machines Corp. 20.69 25.11 25.36 27.11 26.80
Microsoft Corp. 19.81 24.32 20.80 14.41 15.71 14.56
Inventory Turnover, Sector
Software & Services 51.78 49.60 38.89 41.66 39.34
Inventory Turnover, Industry
Information Technology 13.22 13.29 13.53 12.80 15.28

Based on: 10-K (filing date: 2021-06-21), 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).

1 2021 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 7,855 ÷ 142 = 55.32

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Oracle Corp.’s inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Receivables Turnover

Oracle Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Revenues 40,479  39,068  39,506  39,831  37,728  37,047 
Trade receivables, net of allowances for doubtful accounts 5,409  5,551  5,134  5,279  5,300  5,385 
Short-term Activity Ratio
Receivables turnover1 7.48 7.04 7.69 7.55 7.12 6.88
Benchmarks
Receivables Turnover, Competitors2
Accenture PLC 5.74 6.16 5.79 8.33 8.05 8.55
Adobe Inc. 9.20 7.28 6.86 5.99 7.03
Autodesk Inc. 5.89 5.02 5.42 4.69 4.49 3.83
Automatic Data Processing Inc. 5.50 5.98 5.81 6.72 7.27 6.69
Fidelity National Information Services Inc. 18.96 15.97 29.98 31.35 52.81
Fiserv Inc. 5.98 3.66 5.55 5.71 6.10
International Business Machines Corp. 10.32 9.80 10.71 8.86 8.70
Intuit Inc. 24.64 51.54 77.98 60.86 50.26 43.46
Mastercard Inc. 8.97 5.64 6.10 9.09 9.86
Microsoft Corp. 4.42 4.47 4.26 4.17 4.54 4.67
PayPal Holdings Inc. 37.18 40.86 49.36 46.27 50.66
salesforce.com inc. 2.73 2.77 2.70 2.68 2.63 2.67
ServiceNow Inc. 4.48 4.14 4.54 4.44 4.31
Visa Inc. 13.71 17.28 7.54 13.03 12.91 10.28
Receivables Turnover, Sector
Software & Services 6.34 5.92 6.53 6.78 6.85
Receivables Turnover, Industry
Information Technology 8.34 7.61 7.94 8.34 8.64

Based on: 10-K (filing date: 2021-06-21), 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).

1 2021 Calculation
Receivables turnover = Revenues ÷ Trade receivables, net of allowances for doubtful accounts
= 40,479 ÷ 5,409 = 7.48

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Oracle Corp.’s receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Payables Turnover

Oracle Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Cost of revenues 7,855  7,938  7,995  8,081  7,469  7,479 
Accounts payable 745  637  580  529  599  504 
Short-term Activity Ratio
Payables turnover1 10.54 12.46 13.78 15.28 12.47 14.84
Benchmarks
Payables Turnover, Competitors2
Accenture PLC 15.03 22.48 18.16 21.62 16.87 19.14
Adobe Inc. 5.63 7.98 6.42 8.90 9.31
Autodesk Inc. 2.75 3.88 2.81 3.20 3.66 3.09
Automatic Data Processing Inc. 61.24 82.80 64.44 57.92 48.56 44.91
Fidelity National Information Services Inc. 1.69 1.56 5.73 6.51 8.73
Fiserv Inc. 17.88 13.54 24.17 37.80 26.90
International Business Machines Corp. 7.75 8.30 6.50 6.65 6.70
Intuit Inc. 2.70 4.52 4.26 5.49 5.15 4.09
Mastercard Inc. 10.37 6.22 6.83 9.31 11.39
Microsoft Corp. 3.44 3.68 4.57 4.45 4.64 4.75
PayPal Holdings Inc. 45.45 42.18 29.40 26.05 29.69
salesforce.com inc.
ServiceNow Inc. 28.83 15.04 20.26 15.56 10.47
Visa Inc. 9.87 12.58 5.76 9.51 9.17 7.24
Payables Turnover, Sector
Software & Services 7.02 6.89 7.88 8.01 8.09
Payables Turnover, Industry
Information Technology 5.58 5.29 4.93 4.98 5.65

Based on: 10-K (filing date: 2021-06-21), 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).

1 2021 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 7,855 ÷ 745 = 10.54

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Oracle Corp.’s payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021.

Working Capital Turnover

Oracle Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Current assets 55,567  52,140  46,386  75,964  74,515  64,313 
Less: Current liabilities 24,164  17,200  18,630  19,195  24,178  17,208 
Working capital 31,403  34,940  27,756  56,769  50,337  47,105 
 
Revenues 40,479  39,068  39,506  39,831  37,728  37,047 
Short-term Activity Ratio
Working capital turnover1 1.29 1.12 1.42 0.70 0.75 0.79
Benchmarks
Working Capital Turnover, Competitors2
Accenture PLC 12.77 8.71 9.85 12.12 16.17 11.23
Adobe Inc. 4.89 16.24 1.96 1.93
Autodesk Inc. 7.38 1.79
Automatic Data Processing Inc. 5.67 10.15 8.27 8.14 4.35 3.19
Fidelity National Information Services Inc. 13.85 8.17
Fiserv Inc. 25.52 7.72 27.21 153.95
International Business Machines Corp. 107.30 7.29 6.40 10.50
Intuit Inc. 3.85 1.73 4.17 20.71
Mastercard Inc. 2.11 3.38 3.27 2.50 1.79
Microsoft Corp. 1.76 1.30 1.19 0.99 0.94 1.06
PayPal Holdings Inc. 1.71 1.54 2.19 1.34 1.22
salesforce.com inc. 5.11 15.29
ServiceNow Inc. 5.76 46.69 7.86 6.24 5.13
Visa Inc. 2.03 1.66 3.04 2.98 2.03 2.41
Working Capital Turnover, Sector
Software & Services 2.35 2.54 1.87 1.79 1.93
Working Capital Turnover, Industry
Information Technology 2.92 3.13 2.85 2.15 2.37

Based on: 10-K (filing date: 2021-06-21), 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).

1 2021 Calculation
Working capital turnover = Revenues ÷ Working capital
= 40,479 ÷ 31,403 = 1.29

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Oracle Corp.’s working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Average Inventory Processing Period

Oracle Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data
Inventory turnover 55.32 37.62 24.98 20.30 24.90 35.28
Short-term Activity Ratio (no. days)
Average inventory processing period1 7 10 15 18 15 10
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
International Business Machines Corp. 18 15 14 13 14
Microsoft Corp. 18 15 18 25 23 25
Average Inventory Processing Period, Sector
Software & Services 7 7 9 9 9
Average Inventory Processing Period, Industry
Information Technology 28 27 27 29 24

Based on: 10-K (filing date: 2021-06-21), 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).

1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 55.32 = 7

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Oracle Corp.’s number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021.

Average Receivable Collection Period

Oracle Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data
Receivables turnover 7.48 7.04 7.69 7.55 7.12 6.88
Short-term Activity Ratio (no. days)
Average receivable collection period1 49 52 47 48 51 53
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Accenture PLC 64 59 63 44 45 43
Adobe Inc. 40 50 53 61 52
Autodesk Inc. 62 73 67 78 81 95
Automatic Data Processing Inc. 66 61 63 54 50 55
Fidelity National Information Services Inc. 19 23 12 12 7
Fiserv Inc. 61 100 66 64 60
International Business Machines Corp. 35 37 34 41 42
Intuit Inc. 15 7 5 6 7 8
Mastercard Inc. 41 65 60 40 37
Microsoft Corp. 83 82 86 88 80 78
PayPal Holdings Inc. 10 9 7 8 7
salesforce.com inc. 134 132 135 136 139 137
ServiceNow Inc. 82 88 80 82 85
Visa Inc. 27 21 48 28 28 36
Average Receivable Collection Period, Sector
Software & Services 58 62 56 54 53
Average Receivable Collection Period, Industry
Information Technology 44 48 46 44 42

Based on: 10-K (filing date: 2021-06-21), 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).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.48 = 49

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Oracle Corp.’s number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Operating Cycle

Oracle Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data
Average inventory processing period 7 10 15 18 15 10
Average receivable collection period 49 52 47 48 51 53
Short-term Activity Ratio
Operating cycle1 56 62 62 66 66 63
Benchmarks
Operating Cycle, Competitors2
International Business Machines Corp. 53 52 48 54 56
Microsoft Corp. 101 97 104 113 103 103
Operating Cycle, Sector
Software & Services 65 69 65 63 62
Operating Cycle, Industry
Information Technology 72 75 73 73 66

Based on: 10-K (filing date: 2021-06-21), 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).

1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 7 + 49 = 56

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

Oracle Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data
Payables turnover 10.54 12.46 13.78 15.28 12.47 14.84
Short-term Activity Ratio (no. days)
Average payables payment period1 35 29 26 24 29 25
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Accenture PLC 24 16 20 17 22 19
Adobe Inc. 65 46 57 41 39
Autodesk Inc. 133 94 130 114 100 118
Automatic Data Processing Inc. 6 4 6 6 8 8
Fidelity National Information Services Inc. 216 233 64 56 42
Fiserv Inc. 20 27 15 10 14
International Business Machines Corp. 47 44 56 55 54
Intuit Inc. 135 81 86 66 71 89
Mastercard Inc. 35 59 53 39 32
Microsoft Corp. 106 99 80 82 79 77
PayPal Holdings Inc. 8 9 12 14 12
salesforce.com inc.
ServiceNow Inc. 13 24 18 23 35
Visa Inc. 37 29 63 38 40 50
Average Payables Payment Period, Sector
Software & Services 52 53 46 46 45
Average Payables Payment Period, Industry
Information Technology 65 69 74 73 65

Based on: 10-K (filing date: 2021-06-21), 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).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.54 = 35

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Oracle Corp.’s number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021.

Cash Conversion Cycle

Oracle Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data
Average inventory processing period 7 10 15 18 15 10
Average receivable collection period 49 52 47 48 51 53
Average payables payment period 35 29 26 24 29 25
Short-term Activity Ratio
Cash conversion cycle1 21 33 36 42 37 38
Benchmarks
Cash Conversion Cycle, Competitors2
International Business Machines Corp. 6 8 -8 -1 2
Microsoft Corp. -5 -2 24 31 24 26
Cash Conversion Cycle, Sector
Software & Services 13 16 19 17 17
Cash Conversion Cycle, Industry
Information Technology 7 6 -1 0 1

Based on: 10-K (filing date: 2021-06-21), 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).

1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 7 + 4935 = 21

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Oracle Corp.’s cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021.