Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Oracle Corp., liquidity ratios
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
- Current Ratio
- The current ratio shows a consistent and significant decline over the observed period. Starting at 3.03 in May 2020, it decreased steadily each year to reach 0.75 by May 2025. This trend indicates a reduction in the company's ability to cover its short-term liabilities with its short-term assets, suggesting a weakening liquidity position over time.
- Quick Ratio
- The quick ratio follows a similar downward pattern as the current ratio. Beginning at 2.83 in May 2020, it decreased annually to 0.61 by May 2025. The quick ratio, reflecting liquidity without including inventory, also points to a diminishing capacity to meet immediate obligations, reinforcing the observation of reduced short-term financial flexibility.
- Cash Ratio
- The cash ratio exhibits the most pronounced decline among the three liquidity measures. From a high of 2.5 in May 2020, it steadily dropped to 0.34 by May 2025. This sharp decrease highlights a substantial reduction in the company's cash and cash equivalents relative to its current liabilities, indicating potential challenges in managing cash reserves or an increased reliance on other current assets.
Current Ratio
Oracle Corp., current ratio calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 24,579) | 22,554) | 21,004) | 31,633) | 55,567) | 52,140) | |
| Current liabilities | 32,643) | 31,544) | 23,090) | 19,511) | 24,164) | 17,200) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.75 | 0.72 | 0.91 | 1.62 | 2.30 | 3.03 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | — | 1.10 | 1.30 | 1.23 | 1.25 | 1.40 | |
| Adobe Inc. | — | 1.07 | 1.34 | 1.11 | 1.25 | 1.48 | |
| Cadence Design Systems Inc. | — | 2.93 | 1.24 | 1.27 | 1.77 | 1.86 | |
| CrowdStrike Holdings Inc. | 1.77 | 1.76 | 1.73 | 1.83 | 2.65 | 2.38 | |
| Fair Isaac Corp. | — | 1.62 | 1.51 | 1.46 | 0.99 | 1.29 | |
| International Business Machines Corp. | — | 1.04 | 0.96 | 0.92 | 0.88 | 0.98 | |
| Intuit Inc. | — | 1.29 | 1.47 | 1.39 | 1.94 | 2.26 | |
| Microsoft Corp. | — | 1.27 | 1.77 | 1.78 | 2.08 | 2.52 | |
| Palantir Technologies Inc. | — | 5.96 | 5.55 | 5.17 | 4.34 | 3.74 | |
| Palo Alto Networks Inc. | — | 0.89 | 0.78 | 0.77 | 0.91 | 1.91 | |
| Salesforce Inc. | 1.06 | 1.09 | 1.02 | 1.05 | 1.23 | 1.08 | |
| ServiceNow Inc. | — | 1.10 | 1.06 | 1.11 | 1.05 | 1.21 | |
| Synopsys Inc. | — | 2.44 | 1.15 | 1.09 | 1.16 | 1.19 | |
| Workday Inc. | 1.90 | 1.97 | 1.75 | 1.03 | 1.12 | 1.04 | |
| Current Ratio, Sector | |||||||
| Software & Services | — | 1.19 | 1.39 | 1.43 | 1.67 | 1.91 | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.24 | 1.41 | 1.37 | 1.55 | 1.71 | |
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,579 ÷ 32,643 = 0.75
2 Click competitor name to see calculations.
The financial data over the past six years reflects significant changes in the liquidity position and working capital components.
- Current Assets
- Current assets exhibit a sharp decline from 2021 to 2023, dropping from 55,567 million US dollars in 2021 to 21,004 million US dollars in 2023. After this decline, current assets show a moderate increase through 2025, reaching 24,579 million US dollars. This pattern indicates a period of asset contraction followed by partial recovery or stabilization.
- Current Liabilities
- Current liabilities increase steadily over the period, beginning at 17,200 million US dollars in 2020 and rising consistently every year to reach 32,643 million US dollars in 2025. This upward trend indicates growing short-term obligations that could pose pressure on liquidity if not matched by adequate current assets.
- Current Ratio
- The current ratio shows a notable declining trend, starting from a strong liquidity position of 3.03 in 2020 and declining below the benchmark of 1.0 by 2023, reaching 0.91. It further decreases to a low of 0.72 in 2024, then experiences a slight improvement to 0.75 in 2025. This trend suggests increasing liquidity risk, as current liabilities have grown faster than current assets, potentially affecting the company's ability to cover short-term obligations comfortably.
Overall, the data reveal a marked deterioration in liquidity from 2020 through 2024, with a potential stabilization or slight improvement starting in 2025. The steady rise in current liabilities relative to shrinking current assets may warrant closer management oversight to prevent liquidity stress.
Quick Ratio
Oracle Corp., quick ratio calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 10,786) | 10,454) | 9,765) | 21,383) | 30,098) | 37,239) | |
| Marketable securities | 417) | 207) | 422) | 519) | 16,456) | 5,818) | |
| Trade receivables, net of allowances for credit losses | 8,558) | 7,874) | 6,915) | 5,953) | 5,409) | 5,551) | |
| Total quick assets | 19,761) | 18,535) | 17,102) | 27,855) | 51,963) | 48,608) | |
| Current liabilities | 32,643) | 31,544) | 23,090) | 19,511) | 24,164) | 17,200) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.61 | 0.59 | 0.74 | 1.43 | 2.15 | 2.83 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | — | 0.98 | 1.18 | 1.12 | 1.14 | 1.29 | |
| Adobe Inc. | — | 0.95 | 1.22 | 1.00 | 1.11 | 1.34 | |
| Cadence Design Systems Inc. | — | 2.53 | 1.02 | 1.02 | 1.47 | 1.60 | |
| CrowdStrike Holdings Inc. | 1.58 | 1.60 | 1.58 | 1.68 | 2.50 | 2.18 | |
| Fair Isaac Corp. | — | 1.52 | 1.43 | 1.37 | 0.91 | 1.19 | |
| International Business Machines Corp. | — | 0.90 | 0.82 | 0.76 | 0.69 | 0.83 | |
| Intuit Inc. | — | 0.71 | 1.25 | 1.17 | 1.65 | 2.04 | |
| Microsoft Corp. | — | 1.06 | 1.54 | 1.57 | 1.90 | 2.33 | |
| Palantir Technologies Inc. | — | 5.83 | 5.41 | 4.92 | 4.11 | 3.59 | |
| Palo Alto Networks Inc. | — | 0.82 | 0.72 | 0.75 | 0.88 | 1.85 | |
| Salesforce Inc. | 0.93 | 0.96 | 0.90 | 0.93 | 1.11 | 0.95 | |
| ServiceNow Inc. | — | 1.02 | 1.00 | 1.06 | 1.01 | 1.16 | |
| Synopsys Inc. | — | 1.88 | 0.85 | 0.85 | 0.89 | 0.94 | |
| Workday Inc. | 1.80 | 1.87 | 1.66 | 0.96 | 1.07 | 0.95 | |
| Quick Ratio, Sector | |||||||
| Software & Services | — | 1.00 | 1.21 | 1.26 | 1.51 | 1.75 | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 0.96 | 1.12 | 1.08 | 1.30 | 1.46 | |
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 19,761 ÷ 32,643 = 0.61
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets exhibit a significant decline over the observed periods. From May 31, 2020, to May 31, 2021, there is a modest increase from 48,608 million USD to 51,963 million USD. However, starting from 2021, a sharp decrease is evident, dropping to 27,855 million USD in 2022 and further declining to 17,102 million USD by 2023. The subsequent periods show a slight recovery with values increasing to 18,535 million USD in 2024 and 19,761 million USD in 2025, though these levels remain substantially lower than the initial figures.
- Current liabilities
- Current liabilities demonstrate an overall upward trend throughout the period under review. Initial liability levels rise from 17,200 million USD in 2020 to 24,164 million USD in 2021. Although a reduction to 19,511 million USD is noted in 2022, liabilities climb again to 23,090 million USD in 2023 and experience a pronounced increase in the last two periods, reaching 31,544 million USD in 2024 and 32,643 million USD in 2025.
- Quick ratio
- The quick ratio illustrates a consistent downward trajectory, indicating a deteriorating short-term liquidity position. Starting at a strong 2.83 in 2020, the ratio falls to 2.15 in 2021 and continues to decline sharply to 1.43 in 2022. The negative trend accelerates in the following years, with the ratio plunging below 1.00 to 0.74 in 2023 and further decreasing to 0.59 in 2024. A marginal improvement to 0.61 is visible in 2025; however, the ratio remains well below the levels recorded at the beginning of the period.
In summary, the data reveal a substantial erosion of liquid assets relative to current obligations, reflected in the declining quick ratio. Concurrently, rising current liabilities impose increasing pressure on the company's ability to cover short-term debts with quick assets. Despite minor recoveries in quick assets and the quick ratio in the final periods, the overall liquidity position appears weakened when compared to the starting point of the timeframe.
Cash Ratio
Oracle Corp., cash ratio calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 10,786) | 10,454) | 9,765) | 21,383) | 30,098) | 37,239) | |
| Marketable securities | 417) | 207) | 422) | 519) | 16,456) | 5,818) | |
| Total cash assets | 11,203) | 10,661) | 10,187) | 21,902) | 46,554) | 43,057) | |
| Current liabilities | 32,643) | 31,544) | 23,090) | 19,511) | 24,164) | 17,200) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.34 | 0.34 | 0.44 | 1.12 | 1.93 | 2.50 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | — | 0.26 | 0.50 | 0.45 | 0.52 | 0.67 | |
| Adobe Inc. | — | 0.75 | 0.95 | 0.75 | 0.84 | 1.09 | |
| Cadence Design Systems Inc. | — | 2.03 | 0.72 | 0.66 | 1.13 | 1.17 | |
| CrowdStrike Holdings Inc. | 1.25 | 1.29 | 1.28 | 1.42 | 2.22 | 1.85 | |
| Fair Isaac Corp. | — | 0.40 | 0.37 | 0.40 | 0.35 | 0.38 | |
| International Business Machines Corp. | — | 0.45 | 0.39 | 0.28 | 0.22 | 0.36 | |
| Intuit Inc. | — | 0.54 | 0.97 | 0.90 | 1.46 | 2.00 | |
| Microsoft Corp. | — | 0.60 | 1.07 | 1.10 | 1.47 | 1.89 | |
| Palantir Technologies Inc. | — | 5.25 | 4.93 | 4.48 | 3.83 | 3.33 | |
| Palo Alto Networks Inc. | — | 0.34 | 0.31 | 0.44 | 0.57 | 1.39 | |
| Salesforce Inc. | 0.50 | 0.53 | 0.48 | 0.48 | 0.67 | 0.54 | |
| ServiceNow Inc. | — | 0.69 | 0.66 | 0.71 | 0.67 | 0.83 | |
| Synopsys Inc. | — | 1.53 | 0.53 | 0.56 | 0.65 | 0.58 | |
| Workday Inc. | 1.45 | 1.55 | 1.32 | 0.72 | 0.83 | 0.65 | |
| Cash Ratio, Sector | |||||||
| Software & Services | — | 0.58 | 0.78 | 0.82 | 1.11 | 1.32 | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.57 | 0.71 | 0.66 | 0.88 | 1.06 | |
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 11,203 ÷ 32,643 = 0.34
2 Click competitor name to see calculations.
- Total Cash Assets
- Total cash assets exhibited notable volatility over the analyzed periods. Starting at $43,057 million in 2020, cash reserves increased slightly to $46,554 million in 2021 before undergoing a significant decline in the subsequent years. By 2023, total cash assets had fallen sharply to $10,187 million, approximately one-fifth of the 2021 level. In the most recent years, 2024 and 2025, cash balances stabilized somewhat, showing modest growth to $10,661 million and $11,203 million respectively.
- Current Liabilities
- Current liabilities showed an overall increasing trend during the period. Beginning at $17,200 million in 2020, liabilities rose substantially to $24,164 million in 2021. A temporary reduction was observed in 2022, with current liabilities decreasing to $19,511 million. However, from 2023 onward, liabilities resumed an upward trajectory, reaching $23,090 million in 2023 and accelerating significantly to $31,544 million in 2024 and $32,643 million in 2025.
- Cash Ratio
- The cash ratio declined markedly over the period under review. In 2020, the ratio was strong at 2.5, indicating cash assets more than double the level of current liabilities. However, this ratio decreased consistently year by year, dropping to 1.93 in 2021. Subsequently, it fell below 1 in 2022, landing at 1.12, and further declined to 0.44 in 2023. The ratio continued to decrease slightly, stabilizing around 0.34 in both 2024 and 2025. This trend signals a reduction in liquidity, with cash reserves becoming increasingly insufficient to cover current liabilities.