Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Oracle Corp. (NYSE:ORCL)

Analysis of Short-term (Operating) Activity Ratios

Beginner level


Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Turnover Ratios
Inventory turnover 37.62 24.98 20.30 24.90 35.28 23.99
Receivables turnover 7.04 7.69 7.55 7.12 6.88 6.80
Payables turnover 12.46 13.78 15.28 12.47 14.84 9.34
Working capital turnover 1.12 1.42 0.70 0.75 0.79 0.80
Average No. Days
Average inventory processing period 10 15 18 15 10 15
Add: Average receivable collection period 52 47 48 51 53 54
Operating cycle 62 62 66 66 63 69
Less: Average payables payment period 29 26 24 29 25 39
Cash conversion cycle 33 36 42 37 38 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).

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 2018 to 2019 and from 2019 to 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Oracle Corp.’s receivables turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Oracle Corp.’s payables turnover ratio decreased from 2018 to 2019 and from 2019 to 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Oracle Corp.’s working capital turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

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 2018 to 2019 and from 2019 to 2020.
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 improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.

Inventory Turnover

Oracle Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Cost of revenues 7,938  7,995  8,081  7,469  7,479  7,532 
Inventories 211  320  398  300  212  314 
Short-term Activity Ratio
Inventory turnover1 37.62 24.98 20.30 24.90 35.28 23.99
Benchmarks
Inventory Turnover, Competitors2
Alphabet Inc. 71.97 53.79 60.86 131.11 57.36
International Business Machines Corp. 25.11 25.36 27.11 26.80 26.47
Microsoft Corp. 24.32 20.80 14.41 15.71 14.56 11.38
Inventory Turnover, Sector
Software & Computer Services 36.71 28.02 29.21 29.13 22.08
Inventory Turnover, Industry
Technology 12.36 12.36 11.49 13.63 13.76

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
Inventory turnover = Cost of revenues ÷ Inventories
= 7,938 ÷ 211 = 37.62

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 2018 to 2019 and from 2019 to 2020.

Receivables Turnover

Oracle Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Revenues 39,068  39,506  39,831  37,728  37,047  38,226 
Trade receivables, net of allowances for doubtful accounts 5,551  5,134  5,279  5,300  5,385  5,618 
Short-term Activity Ratio
Receivables turnover1 7.04 7.69 7.55 7.12 6.88 6.80
Benchmarks
Receivables Turnover, Competitors2
Adobe Inc. 7.28 6.86 5.99 7.03 7.14
Alphabet Inc. 6.39 6.57 6.05 6.39 6.49
Autodesk Inc. 5.02 5.42 4.69 4.49 3.83 5.47
Facebook Inc. 7.43 7.36 6.97 6.92 7.01
International Business Machines Corp. 9.80 10.71 8.86 8.70 9.81
Intuit Inc. 77.98 60.86 50.26 43.46 46.07
Microsoft Corp. 4.47 4.26 4.17 4.54 4.67 5.23
salesforce.com inc. 2.77 2.70 2.68 2.63 2.67 2.82
ServiceNow Inc. 4.14 4.54 4.44 4.31 4.94
Receivables Turnover, Sector
Software & Computer Services 6.01 6.12 6.03 6.16 6.58
Receivables Turnover, Industry
Technology 7.50 7.54 7.69 8.07 8.64

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
Receivables turnover = Revenues ÷ Trade receivables, net of allowances for doubtful accounts
= 39,068 ÷ 5,551 = 7.04

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 improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Payables Turnover

Oracle Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Cost of revenues 7,938  7,995  8,081  7,469  7,479  7,532 
Accounts payable 637  580  529  599  504  806 
Short-term Activity Ratio
Payables turnover1 12.46 13.78 15.28 12.47 14.84 9.34
Benchmarks
Payables Turnover, Competitors2
Adobe Inc. 7.98 6.42 8.90 9.31 7.98
Alphabet Inc. 12.93 13.60 14.53 17.22 14.59
Autodesk Inc. 3.88 2.81 3.20 3.66 3.09 3.40
Facebook Inc. 9.37 11.41 14.35 12.55 14.63
International Business Machines Corp. 8.30 6.50 6.65 6.70 6.81
Intuit Inc. 4.26 5.49 5.15 4.09 3.82
Microsoft Corp. 3.68 4.57 4.45 4.64 4.75 5.01
salesforce.com inc.
ServiceNow Inc. 15.04 20.26 15.56 10.47 8.82
Payables Turnover, Sector
Software & Computer Services 8.19 7.66 7.66 7.62 7.27
Payables Turnover, Industry
Technology 5.54 4.82 4.80 5.41 5.72

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
Payables turnover = Cost of revenues ÷ Accounts payable
= 7,938 ÷ 637 = 12.46

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 2018 to 2019 and from 2019 to 2020.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
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 
Less: Current liabilities 17,200  18,630  19,195  24,178  17,208  15,291 
Working capital 34,940  27,756  56,769  50,337  47,105  47,892 
 
Revenues 39,068  39,506  39,831  37,728  37,047  38,226 
Short-term Activity Ratio
Working capital turnover1 1.12 1.42 0.70 0.75 0.79 0.80
Benchmarks
Working Capital Turnover, Competitors2
Adobe Inc. 16.24 1.96 1.93 1.84
Alphabet Inc. 1.51 1.35 1.11 1.02 1.06
Autodesk Inc. 7.38 1.79 1.98
Facebook Inc. 1.38 1.28 0.91 0.88 0.91
International Business Machines Corp. 107.30 7.29 6.40 10.50 9.93
Intuit Inc. 4.17 20.71 5.14
Microsoft Corp. 1.30 1.19 0.99 0.94 1.06 1.25
salesforce.com inc. 15.29
ServiceNow Inc. 46.69 7.86 6.24 5.13 2.84
Working Capital Turnover, Sector
Software & Computer Services 1.76 1.40 1.25 1.32 1.44
Working Capital Turnover, Industry
Technology 2.42 2.24 1.73 1.87 2.10

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
Working capital turnover = Revenues ÷ Working capital
= 39,068 ÷ 34,940 = 1.12

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 improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data
Inventory turnover 37.62 24.98 20.30 24.90 35.28 23.99
Short-term Activity Ratio (no. days)
Average inventory processing period1 10 15 18 15 10 15
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Alphabet Inc. 5 7 6 3 6
International Business Machines Corp. 15 14 13 14 14
Microsoft Corp. 15 18 25 23 25 32
Average Inventory Processing Period, Sector
Software & Computer Services 10 13 12 13 17
Average Inventory Processing Period, Industry
Technology 30 30 32 27 27

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 37.62 = 10

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 2018 to 2019 and from 2019 to 2020.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data
Receivables turnover 7.04 7.69 7.55 7.12 6.88 6.80
Short-term Activity Ratio (no. days)
Average receivable collection period1 52 47 48 51 53 54
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Adobe Inc. 50 53 61 52 51
Alphabet Inc. 57 56 60 57 56
Autodesk Inc. 73 67 78 81 95 67
Facebook Inc. 49 50 52 53 52
International Business Machines Corp. 37 34 41 42 37
Intuit Inc. 5 6 7 8 8
Microsoft Corp. 82 86 88 80 78 70
salesforce.com inc. 132 135 136 139 137 129
ServiceNow Inc. 88 80 82 85 74
Average Receivable Collection Period, Sector
Software & Computer Services 61 60 61 59 55
Average Receivable Collection Period, Industry
Technology 49 48 47 45 42

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.04 = 52

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 improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Operating Cycle

Oracle Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data
Average inventory processing period 10 15 18 15 10 15
Average receivable collection period 52 47 48 51 53 54
Short-term Activity Ratio
Operating cycle1 62 62 66 66 63 69
Benchmarks
Operating Cycle, Competitors2
Alphabet Inc. 62 63 66 60 62
International Business Machines Corp. 52 48 54 56 51
Microsoft Corp. 97 104 113 103 103 102
Operating Cycle, Sector
Software & Computer Services 71 73 73 72 72
Operating Cycle, Industry
Technology 79 78 79 72 69

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
Operating cycle = Average inventory processing period + Average receivable collection period
= 10 + 52 = 62

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, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data
Payables turnover 12.46 13.78 15.28 12.47 14.84 9.34
Short-term Activity Ratio (no. days)
Average payables payment period1 29 26 24 29 25 39
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Adobe Inc. 46 57 41 39 46
Alphabet Inc. 28 27 25 21 25
Autodesk Inc. 94 130 114 100 118 107
Facebook Inc. 39 32 25 29 25
International Business Machines Corp. 44 56 55 54 54
Intuit Inc. 86 66 71 89 96
Microsoft Corp. 99 80 82 79 77 73
salesforce.com inc.
ServiceNow Inc. 24 18 23 35 41
Average Payables Payment Period, Sector
Software & Computer Services 45 48 48 48 50
Average Payables Payment Period, Industry
Technology 66 76 76 67 64

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.46 = 29

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 2018 to 2019 and from 2019 to 2020.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data
Average inventory processing period 10 15 18 15 10 15
Average receivable collection period 52 47 48 51 53 54
Average payables payment period 29 26 24 29 25 39
Short-term Activity Ratio
Cash conversion cycle1 33 36 42 37 38 30
Benchmarks
Cash Conversion Cycle, Competitors2
Alphabet Inc. 34 36 41 39 37
International Business Machines Corp. 8 -8 -1 2 -3
Microsoft Corp. -2 24 31 24 26 29
Cash Conversion Cycle, Sector
Software & Computer Services 26 25 25 24 22
Cash Conversion Cycle, Industry
Technology 13 2 3 5 5

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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 10 + 5229 = 33

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 2018 to 2019 and from 2019 to 2020.