Oracle Corp. (NYSE:ORCL)

The analysis of the financial ratios over the periods reveals several notable trends and changes.

Receivables Turnover

This ratio fluctuates moderately throughout the periods, reaching peaks near 9.28 in early 2022 before gradually declining to levels around 6.7 by the later periods. This indicates that the company’s efficiency in collecting receivables slightly decreased over time after an earlier improvement phase.

Payables Turnover

The payables turnover shows significant variability, with a peak of 14.72 observed in late 2019 and later a substantial drop to as low as 3.31 in the last available period. The pattern suggests variations in the rate at which the company settles its payables, which could reflect changing supplier payment terms or cash flow management strategies.

Working Capital Turnover

This ratio demonstrates a distinct upward trend initially, moving from about 1.12 to nearly 3.86 in early 2022. Data after this period is sparse, except for a substantial outlier value of 113.15 in the penultimate recorded period. The earlier increase reflects improved utilization of working capital. The extreme outlier may indicate a data anomaly or a significant one-time event affecting working capital.

Average Receivable Collection Period (days)

The average days to collect receivables decrease from 52 to approximately 39 days during the earlier periods, reflecting a quicker collections process. However, thereafter the collection period stabilizes around the high 40s to mid-50s range, suggesting a slight weakening or normalization in collections efficiency.

Average Payables Payment Period (days)

The average payment period exhibits volatility, initially reducing from 29 days to 25 days, then increasing steadily to over 50 days in several periods, and then sharply increasing to 110 days in the final period. This indicates increasingly longer payment cycles over time, potentially pointing to a strategic extension of payables or liquidity challenges.

Overall, the data points to initially improving efficiency in receivables management followed by stabilization or modest decline, while payables management appears increasingly stretched. The working capital turnover shows marked improvement before data gaps and anomalies appear. The extension in payables payment periods towards the end may warrant further investigation to understand underlying operational or financial factors.

The revenue figures demonstrate a generally upward trajectory over the observed periods, starting from approximately $9.2 billion and reaching nearly $15.9 billion by the end of the latest quarter. There are quarterly fluctuations reflecting some seasonality or market dynamics, with occasional dips, notably around August quarters, but overall growth is sustained through to the latest period.

Trade receivables, net of allowances for credit losses, show a similar increasing pattern, rising from around $3.8 billion initially to over $8.5 billion in the most recent quarter. The increase in receivables aligns with the growing revenue, indicating that sales on credit have proportionally increased. However, the growth rate of receivables appears somewhat more volatile with a steeper rise evident during early 2020 and again from mid-2021 onward.

The receivables turnover ratio, which measures how effectively the company manages credit extended to customers, exhibits notable variation. It reached its peak values between 8.5 and 9.3 in several quarters spanning late 2019 to early 2022, indicating relatively efficient collection during those periods. However, turnover ratios declined in later quarters, fluctuating between approximately 6.7 and 7.8. This trend suggests a slowing in the rate at which receivables are converted into cash, potentially indicating longer credit terms or slower collection processes over recent periods.

Overall, the company's revenue growth is robust with consistent increases, supported by a parallel rise in trade receivables. However, the declining trend in receivables turnover in recent quarters may warrant attention to credit policies and collection efficiencies to sustain cash flow performance alongside revenue expansion.

Revenues

Steady increase from $9.2B to $15.9B over the period, with some quarterly volatility.

Trade Receivables (Net)

Growth from $3.8B to $8.5B, showing increased credit sales and corresponding rise with revenues.

Receivables Turnover Ratio

Peaked near 9 in early periods, indicating efficient collections; declined to around 6.7-7.8 in later periods, suggesting slower collections and possible credit term changes.

The cost of revenues demonstrates an overall increasing trend throughout the observed periods. Initially, values fluctuated modestly around the 1900 to 2100 million USD range up to mid-2022. From August 2022 onward, a marked rise is evident, reaching over 4700 million USD by May 2025. This indicates growing expenses associated with producing goods or services, particularly pronounced in the latest periods.

Accounts payable show considerable volatility with a general upward trajectory. The amounts increased from approximately 486 million USD in August 2019 to a peak above 5113 million USD in May 2025. Several sharp rises and declines are visible, notably a substantial jump after August 2023. Such fluctuations suggest changes in payment practices or credit terms with suppliers, as well as variations in purchasing levels.

The payables turnover ratio, available from May 2020 forward, exhibits a declining pattern, moving from around 12.46 times in mid-2020 down to roughly 3.31 times by May 2025. This downward trend implies a lengthening in the average payment period to suppliers. Combined with the rising accounts payable, this could indicate a strategic extension of payment terms or slower settlement of obligations.

In summary, the financial data reveal increasing operational costs and a growing reliance on supplier credit, with payments being made over longer periods. These trends may reflect changes in business scale, supply chain management, or liquidity strategy.

The working capital of the company has exhibited significant fluctuations over the analyzed periods. Initially, there was a downward trend from August 2019 to February 2020, followed by a sharp increase peaking in May 2020. Subsequent quarters saw a decrease again with some periods of recovery, but from August 2022 onward, working capital values turned negative and remained mostly in negative territory with some variations, indicating tighter liquidity conditions or increased short-term obligations relative to current assets.

Revenues consistently showed positive growth across the quarters, with minor fluctuations. Starting from approximately 9,218 million USD in August 2019, revenues gradually increased, reaching a peak of 15,903 million USD in May 2025. This indicates sustained demand and possibly expansion in business activities, with occasional stronger jumps particularly from November 2022 onwards.

The working capital turnover ratio, available for a limited number of periods, demonstrates a general upward trend till February 2022, moving from 1.12 to a high of 3.86, before becoming sporadically reported and extremely high at 113.15 in February 2025. The early increase suggests improved efficiency in using working capital to generate revenues. The anomalous figure in the last reported period may indicate an irregularity or a significant change in either revenues or working capital, possibly related to the negative working capital figures observed in recent quarters.

Summary of Key Trends

Working capital showed volatility with a notable shift to negative values after August 2022, suggesting liquidity pressure or increased short-term liabilities.

Revenues demonstrated steady growth, reflecting strong top-line expansion despite working capital fluctuations.

Working capital turnover increased initially, indicating improved operational efficiency, but later data become inconsistent or extreme, implying potential accounting or operational changes.

Overall, while the company’s revenue growth performance is robust, the declining and negative working capital warrants attention for potential liquidity risk. The rise in working capital turnover early on is positive, yet the recent irregularities suggest a need for further investigation into short-term financial management and operational efficiency metrics.

The receivables turnover ratio exhibits a fluctuating pattern throughout the observed periods. Starting from a turnover of 7.04 in May 2020, it increased to a peak of 9.28 in February 2022, indicating more efficient collection of receivables during this timeframe. Following that peak, the turnover ratio generally declined, moving down to values in the range of approximately 6.7 to 7.8 by the end of the series in May 2025, suggesting a gradual reduction in collection efficiency over the later periods.

Correspondingly, the average receivable collection period, which is inversely related to the receivables turnover, reflects an opposing trend. Initially, in May 2020, the collection period was 52 days, which then decreased to a low of 39 days by November 2021, demonstrating faster collection of receivables. After this period of improvement, the average collection days increased again, reaching up to 54 days by November 2024 and May 2025. This indicates a lengthening of the time taken to collect receivables towards the end of the observation window.

Receivables Turnover Ratio

Initially increased from 7.04 to a high of 9.28, indicating improved receivables management.

Subsequently decreased steadily to values near 6.71 by the end of the period, suggesting diminished efficiency.

Average Receivable Collection Period

Started at 52 days, decreased to as low as 39 days, showing faster receivables collection.

Then increased back up to around 54 days, pointing to slower collection towards the end.

Overall, the data indicates that receivables management improved through the early part of the timeline, reaching optimal performance around early 2022. However, there has been a gradual decline in this efficiency in recent periods, as evidenced by both the turnover ratio and the collection period metrics. This trend could warrant attention for potential operational or market changes impacting the company's receivables performance.

The analysis of the payables turnover ratio and the average payables payment period over the reported quarterly dates reveals distinct patterns and fluctuations in payment behavior.

Payables Turnover Ratio

The payables turnover ratio begins with values available from May 31, 2020, showing an initial peak at 12.46 and reaching a higher point of 14.72 in November 2019. Thereafter, a decline is observable through 2021, reaching lower values around 6.68 to 7.6 in mid-2022. Early 2023 sees a resurgence with the ratio climbing to 13.67 in November 2023, followed by another decrease to approximately 3.31 by May 31, 2025. This volatility suggests fluctuating efficiency in payable management, with periods of faster payment cycles followed by slowdowns that could reflect varying cash flow conditions or strategic supplier payment policies.

Average Payables Payment Period

The average payment period inversely correlates to the turnover ratio. Starting at 29 days in May 2020, it increases gradually to a peak around 55 days by late 2022. This extended payment period indicates slower settlements to suppliers. Subsequently, a reduction is observed with payment periods shortening to around 27 days in late 2023, signifying quicker payments during that interval. However, from early 2024 onward, the payment periods lengthen again, reaching an extreme 110 days by May 2025, which suggests a considerable delay in payments that may impact supplier relations or reflect liquidity management decisions.

Overall, both metrics demonstrate cyclical fluctuations, with phases of expeditious payables processing followed by pronounced extensions in payment durations. The trend toward prolonged payment periods in recent quarters deserves attention as it may hint at cash conservation efforts or potential operational challenges.