Microsoft Excel LibreOffice Calc

Oracle Corp. (ORCL)


Short-term (Operating) Activity Analysis

Difficulty: Beginner


Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Turnover Ratios
Inventory turnover 20.30 24.90 35.28 23.99 38.29 30.75
Receivables turnover 7.55 7.12 6.88 6.80 6.29 6.15
Payables turnover 15.28 12.47 14.84 9.34 15.36 17.61
Working capital turnover 0.70 0.75 0.79 0.80 1.13 1.29
Average No. of Days
Average inventory processing period 18 15 10 15 10 12
Add: Average receivable collection period 48 51 53 54 58 59
Operating cycle 66 66 63 69 68 71
Less: Average payables payment period 24 29 25 39 24 21
Cash conversion cycle 42 37 38 30 44 50

Based on: 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), 10-K (filing date: 2013-06-26).

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Oracle Corp.’s inventory turnover deteriorated from 2016 to 2017 and from 2017 to 2018.
Receivables turnover An activity ratio equal to revenue divided by receivables. Oracle Corp.’s receivables turnover improved from 2016 to 2017 and from 2017 to 2018.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Oracle Corp.’s payables turnover declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Oracle Corp.’s working capital turnover deteriorated from 2016 to 2017 and from 2017 to 2018.

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 average inventory processing period deteriorated from 2016 to 2017 and from 2017 to 2018.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Oracle Corp.’s average receivable collection period improved from 2016 to 2017 and from 2017 to 2018.
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 average payables payment period increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
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 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Inventory Turnover

Oracle Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data (USD $ in millions)
Cost of revenues 8,081  7,469  7,479  7,532  7,236  7,379 
Inventories 398  300  212  314  189  240 
Ratio
Inventory turnover1 20.30 24.90 35.28 23.99 38.29 30.75
Benchmarks
Inventory Turnover, Competitors
Alphabet Inc. 53.79 60.86 131.11 57.36
International Business Machines Corp. 25.36 27.11 26.80 26.47 22.06
Microsoft Corp. 14.41 15.71 14.56 11.38 10.18 10.45
Inventory Turnover, Sector
Software & Computer Services 27.86 29.03 28.95 21.95 22.38
Inventory Turnover, Industry
Technology 13.31 12.04 14.74 14.91 14.90

Based on: 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), 10-K (filing date: 2013-06-26).

2018 Calculations

1 Inventory turnover = Cost of revenues ÷ Inventories
= 8,081 ÷ 398 = 20.30

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Oracle Corp.’s inventory turnover deteriorated from 2016 to 2017 and from 2017 to 2018.

Receivables Turnover

Oracle Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data (USD $ in millions)
Revenues 39,831  37,728  37,047  38,226  38,275  37,180 
Trade receivables, net of allowances for doubtful accounts 5,279  5,300  5,385  5,618  6,087  6,049 
Ratio
Receivables turnover1 7.55 7.12 6.88 6.80 6.29 6.15
Benchmarks
Receivables Turnover, Competitors
Adobe Inc. 6.86 5.99 7.03 7.14 7.01 6.76
Alphabet Inc. 6.57 6.05 6.39 6.49 7.03
Facebook Inc. 7.36 6.97 6.92 7.01 7.43
International Business Machines Corp. 10.71 8.86 8.70 9.81 10.21
Intuit Inc. 60.86 50.26 43.46 46.07 33.63
Microsoft Corp. 4.17 4.54 4.67 5.23 4.44 4.45
salesforce.com inc. 2.68 2.63 2.67 2.82 2.99
Receivables Turnover, Sector
Software & Computer Services 6.14 6.05 6.20 6.60 6.46
Receivables Turnover, Industry
Technology 7.84 7.98 8.32 8.62 8.02

Based on: 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), 10-K (filing date: 2013-06-26).

2018 Calculations

1 Receivables turnover = Revenues ÷ Trade receivables, net of allowances for doubtful accounts
= 39,831 ÷ 5,279 = 7.55

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Oracle Corp.’s receivables turnover improved from 2016 to 2017 and from 2017 to 2018.

Payables Turnover

Oracle Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data (USD $ in millions)
Cost of revenues 8,081  7,469  7,479  7,532  7,236  7,379 
Accounts payable 529  599  504  806  471  419 
Ratio
Payables turnover1 15.28 12.47 14.84 9.34 15.36 17.61
Benchmarks
Payables Turnover, Competitors
Adobe Inc. 6.42 8.90 9.31 7.98 9.10 9.45
Alphabet Inc. 13.60 14.53 17.22 14.59 14.98
Facebook Inc. 11.41 14.35 12.55 14.63 12.23
International Business Machines Corp. 6.50 6.65 6.70 6.81 6.76
Intuit Inc. 5.49 5.15 4.09 3.82 4.15
Microsoft Corp. 4.45 4.64 4.75 5.01 3.64 4.19
salesforce.com inc. 36.27 19.38 23.15 13.49 14.90
Payables Turnover, Sector
Software & Computer Services 7.63 7.62 7.61 7.24 6.54
Payables Turnover, Industry
Technology 4.48 4.44 5.04 5.44 5.27

Based on: 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), 10-K (filing date: 2013-06-26).

2018 Calculations

1 Payables turnover = Cost of revenues ÷ Accounts payable
= 8,081 ÷ 529 = 15.28

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Oracle Corp.’s payables turnover declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data (USD $ in millions)
Current assets 75,964  74,515  64,313  63,183  48,138  41,692 
Less: Current liabilities 19,195  24,178  17,208  15,291  14,389  12,872 
Working capital 56,769  50,337  47,105  47,892  33,749  28,820 
Revenues 39,831  37,728  37,047  38,226  38,275  37,180 
Ratio
Working capital turnover1 0.70 0.75 0.79 0.80 1.13 1.29
Benchmarks
Working Capital Turnover, Competitors
Adobe Inc. 16.24 1.96 1.93 1.84 1.97 1.61
Alphabet Inc. 1.35 1.11 1.02 1.06 1.03
Facebook Inc. 1.28 0.91 0.88 0.91 1.02
International Business Machines Corp. 7.29 6.40 10.50 9.93 9.45
Intuit Inc. 20.71 5.14 3.76
Microsoft Corp. 0.99 0.94 1.06 1.25 1.27 1.22
salesforce.com inc.
Working Capital Turnover, Sector
Software & Computer Services 1.39 1.24 1.32 1.43 1.62
Working Capital Turnover, Industry
Technology 2.36 1.81 2.01 2.33 2.60

Based on: 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), 10-K (filing date: 2013-06-26).

2018 Calculations

1 Working capital turnover = Revenues ÷ Working capital
= 39,831 ÷ 56,769 = 0.70

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Oracle Corp.’s working capital turnover deteriorated from 2016 to 2017 and from 2017 to 2018.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data
Inventory turnover 20.30 24.90 35.28 23.99 38.29 30.75
Ratio (no. of days)
Average inventory processing period1 18 15 10 15 10 12
Benchmarks (no. of days)
Average Inventory Processing Period, Competitors
Alphabet Inc. 7 6 3 6
International Business Machines Corp. 14 13 14 14 17
Microsoft Corp. 25 23 25 32 36 35
Average Inventory Processing Period, Sector
Software & Computer Services 13 13 13 17 16
Average Inventory Processing Period, Industry
Technology 27 30 25 24 24

Based on: 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), 10-K (filing date: 2013-06-26).

2018 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 20.30 = 18

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 average inventory processing period deteriorated from 2016 to 2017 and from 2017 to 2018.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data
Receivables turnover 7.55 7.12 6.88 6.80 6.29 6.15
Ratio (no. of days)
Average receivable collection period1 48 51 53 54 58 59
Benchmarks (no. of days)
Average Receivable Collection Period, Competitors
Adobe Inc. 53 61 52 51 52 54
Alphabet Inc. 56 60 57 56 52
Facebook Inc. 50 52 53 52 49
International Business Machines Corp. 34 41 42 37 36
Intuit Inc. 6 7 8 8 11
Microsoft Corp. 88 80 78 70 82 82
salesforce.com inc. 136 139 137 129 122
Average Receivable Collection Period, Sector
Software & Computer Services 59 60 59 55 57
Average Receivable Collection Period, Industry
Technology 47 46 44 42 46

Based on: 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), 10-K (filing date: 2013-06-26).

2018 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.55 = 48

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 average receivable collection period improved from 2016 to 2017 and from 2017 to 2018.

Operating Cycle

Oracle Corp., operating cycle calculation, comparison to benchmarks

No. of days

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data
Average inventory processing period 18 15 10 15 10 12
Average receivable collection period 48 51 53 54 58 59
Ratio
Operating cycle1 66 66 63 69 68 71
Benchmarks
Operating Cycle, Competitors
Alphabet Inc. 63 66 60 62
International Business Machines Corp. 48 54 56 51 53
Microsoft Corp. 113 103 103 102 118 117
Operating Cycle, Sector
Software & Computer Services 72 73 72 72 73
Operating Cycle, Industry
Technology 74 76 69 66 70

Based on: 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), 10-K (filing date: 2013-06-26).

2018 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= 18 + 48 = 66

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, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data
Payables turnover 15.28 12.47 14.84 9.34 15.36 17.61
Ratio (no. of days)
Average payables payment period1 24 29 25 39 24 21
Benchmarks (no. of days)
Average Payables Payment Period, Competitors
Adobe Inc. 57 41 39 46 40 39
Alphabet Inc. 27 25 21 25 24
Facebook Inc. 32 25 29 25 30
International Business Machines Corp. 56 55 54 54 54
Intuit Inc. 66 71 89 96 88
Microsoft Corp. 82 79 77 73 100 87
salesforce.com inc. 10 19 16 27 24
Average Payables Payment Period, Sector
Software & Computer Services 48 48 48 50 56
Average Payables Payment Period, Industry
Technology 81 82 72 67 69

Based on: 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), 10-K (filing date: 2013-06-26).

2018 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 15.28 = 24

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 average payables payment period increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Cash Conversion Cycle

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

No. of days

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data
Average inventory processing period 18 15 10 15 10 12
Average receivable collection period 48 51 53 54 58 59
Average payables payment period 24 29 25 39 24 21
Ratio
Cash conversion cycle1 42 37 38 30 44 50
Benchmarks
Cash Conversion Cycle, Competitors
Alphabet Inc. 36 41 39 37
International Business Machines Corp. -8 -1 2 -3 -1
Microsoft Corp. 31 24 26 29 18 30
Cash Conversion Cycle, Sector
Software & Computer Services 24 25 24 22 17
Cash Conversion Cycle, Industry
Technology -7 -6 -3 -1 1

Based on: 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), 10-K (filing date: 2013-06-26).

2018 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 18 + 4824 = 42

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 2016 to 2017 but then deteriorated significantly from 2017 to 2018.