Microsoft Excel LibreOffice Calc

Oracle Corp. (ORCL)

Short-term (Operating) Activity Analysis

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Turnover Ratios
Inventory turnover 24.98 20.30 24.90 35.28 23.99 38.29
Receivables turnover 7.69 7.55 7.12 6.88 6.80 6.29
Payables turnover 13.78 15.28 12.47 14.84 9.34 15.36
Working capital turnover 1.42 0.70 0.75 0.79 0.80 1.13
Average No. of Days
Average inventory processing period 15 18 15 10 15 10
Add: Average receivable collection period 47 48 51 53 54 58
Operating cycle 62 66 66 63 69 68
Less: Average payables payment period 26 24 29 25 39 24
Cash conversion cycle 36 42 37 38 30 44

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
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Oracle Corp.’s inventory turnover deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Oracle Corp.’s receivables turnover improved from 2017 to 2018 and from 2018 to 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Oracle Corp.’s payables turnover increased from 2017 to 2018 but then slightly declined from 2018 to 2019 not reaching 2017 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Oracle Corp.’s working capital turnover deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
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.
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 2017 to 2018 and from 2018 to 2019.
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 declined from 2017 to 2018 but then slightly increased from 2018 to 2019.
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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Inventory Turnover

Oracle Corp., inventory turnover 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)
Cost of revenues 7,995  8,081  7,469  7,479  7,532  7,236 
Inventories 320  398  300  212  314  189 
Ratio
Inventory turnover1 24.98 20.30 24.90 35.28 23.99 38.29
Benchmarks
Inventory Turnover, Competitors2
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. 20.80 14.41 15.71 14.56 11.38 10.18
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: 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).

1 2019 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 7,995 ÷ 320 = 24.98

2 Click competitor name to see calculations.

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 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Receivables Turnover

Oracle Corp., receivables turnover 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)
Revenues 39,506  39,831  37,728  37,047  38,226  38,275 
Trade receivables, net of allowances for doubtful accounts 5,134  5,279  5,300  5,385  5,618  6,087 
Ratio
Receivables turnover1 7.69 7.55 7.12 6.88 6.80 6.29
Benchmarks
Receivables Turnover, Competitors2
Adobe Inc. — 6.86 5.99 7.03 7.14 7.01
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. 4.26 4.17 4.54 4.67 5.23 4.44
salesforce.com inc. 2.70 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: 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).

1 2019 Calculation
Receivables turnover = Revenues ÷ Trade receivables, net of allowances for doubtful accounts
= 39,506 ÷ 5,134 = 7.69

2 Click competitor name to see calculations.

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Oracle Corp.’s receivables turnover improved from 2017 to 2018 and from 2018 to 2019.

Payables Turnover

Oracle Corp., payables turnover 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)
Cost of revenues 7,995  8,081  7,469  7,479  7,532  7,236 
Accounts payable 580  529  599  504  806  471 
Ratio
Payables turnover1 13.78 15.28 12.47 14.84 9.34 15.36
Benchmarks
Payables Turnover, Competitors2
Adobe Inc. — 6.42 8.90 9.31 7.98 9.10
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. 4.57 4.45 4.64 4.75 5.01 3.64
salesforce.com inc. 20.92 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: 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).

1 2019 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 7,995 ÷ 580 = 13.78

2 Click competitor name to see calculations.

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Oracle Corp.’s payables turnover increased from 2017 to 2018 but then slightly declined from 2018 to 2019 not reaching 2017 level.

Working Capital Turnover

Oracle Corp., working capital turnover 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 
Less: Current liabilities 18,630  19,195  24,178  17,208  15,291  14,389 
Working capital 27,756  56,769  50,337  47,105  47,892  33,749 
Revenues 39,506  39,831  37,728  37,047  38,226  38,275 
Ratio
Working capital turnover1 1.42 0.70 0.75 0.79 0.80 1.13
Benchmarks
Working Capital Turnover, Competitors2
Adobe Inc. — 16.24 1.96 1.93 1.84 1.97
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. 1.19 0.99 0.94 1.06 1.25 1.27
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: 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).

1 2019 Calculation
Working capital turnover = Revenues ÷ Working capital
= 39,506 ÷ 27,756 = 1.42

2 Click competitor name to see calculations.

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 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Average Inventory Processing Period

Oracle Corp., average inventory processing period 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
Inventory turnover 24.98 20.30 24.90 35.28 23.99 38.29
Ratio (no. of days)
Average inventory processing period1 15 18 15 10 15 10
Benchmarks (no. of days)
Average Inventory Processing Period, Competitors2
Alphabet Inc. — 7 6 3 6 —
International Business Machines Corp. — 14 13 14 14 17
Microsoft Corp. 18 25 23 25 32 36
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: 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).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 24.98 = 15

2 Click competitor name to see calculations.

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.

Average Receivable Collection Period

Oracle Corp., average receivable collection period 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
Receivables turnover 7.69 7.55 7.12 6.88 6.80 6.29
Ratio (no. of days)
Average receivable collection period1 47 48 51 53 54 58
Benchmarks (no. of days)
Average Receivable Collection Period, Competitors2
Adobe Inc. — 53 61 52 51 52
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. 86 88 80 78 70 82
salesforce.com inc. 135 136 139 137 129 122
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: 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).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.69 = 47

2 Click competitor name to see calculations.

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 2017 to 2018 and from 2018 to 2019.

Operating Cycle

Oracle Corp., operating cycle calculation, comparison to benchmarks

No. of days

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
Average inventory processing period 15 18 15 10 15 10
Average receivable collection period 47 48 51 53 54 58
Ratio
Operating cycle1 62 66 66 63 69 68
Benchmarks
Operating Cycle, Competitors2
Alphabet Inc. — 63 66 60 62 —
International Business Machines Corp. — 48 54 56 51 53
Microsoft Corp. 104 113 103 103 102 118
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: 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).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 15 + 47 = 62

2 Click competitor name to see calculations.

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, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data
Payables turnover 13.78 15.28 12.47 14.84 9.34 15.36
Ratio (no. of days)
Average payables payment period1 26 24 29 25 39 24
Benchmarks (no. of days)
Average Payables Payment Period, Competitors2
Adobe Inc. — 57 41 39 46 40
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. 80 82 79 77 73 100
salesforce.com inc. 17 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: 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).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 13.78 = 26

2 Click competitor name to see calculations.

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 declined from 2017 to 2018 but then slightly increased from 2018 to 2019.

Cash Conversion Cycle

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

No. of days

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
Average inventory processing period 15 18 15 10 15 10
Average receivable collection period 47 48 51 53 54 58
Average payables payment period 26 24 29 25 39 24
Ratio
Cash conversion cycle1 36 42 37 38 30 44
Benchmarks
Cash Conversion Cycle, Competitors2
Alphabet Inc. — 36 41 39 37 —
International Business Machines Corp. — -8 -1 2 -3 -1
Microsoft Corp. 24 31 24 26 29 18
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: 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).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 15 + 47 – 26 = 36

2 Click competitor name to see calculations.

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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.