Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Oracle Corp., short-term (operating) activity ratios
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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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 + 49 – 35 = 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. |