2022 Cash Flow Analysis for Oracle Corporation ORCL

Oracle Corporation is a multinational technology company that specializes in developing and marketing database software and technology, cloud-engineered systems, and enterprise software products. The company is headquartered in Austin, Texas, and was founded in 1977. Oracle is renowned for its comprehensive suite of software solutions, including Oracle Database, Oracle Cloud, and Oracle Applications.

The cash flow statement is a financial document that provides insights into how much cash or cash equivalents a company has generated and utilized over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to assess how a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Oracle Corporation in 2022. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We begin on the left with the company's cash position at the start of the fiscal year. As the cash decreased during the year, a portion of that cash was allocated to financing and investing activities. The cash flow from operating activities is the primary source of cash, followed by a significant amount from investing activities.

The cash flow from investing activities is positive, indicating that Oracle received more from selling assets or investments than it spent on new investments. The cash flow from financing activities is negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, we conclude on the right with the company's cash position at the end of the fiscal year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Oracle Corporation's cash flow, we have created a real-time counter that simulates the company's cash flow for 2022. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they happen, but a simulation based on the company's reported cash flow for 2022. The counter is designed to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2022, Oracle Corporation generated $9,539 million in cash from operating activities, received $11,220 million from investing activities, and spent $29,126 million on financing activities. Consequently, the company's cash balance decreased by $8,715 million during the year.

The company's capital expenditures for the year were $4,511 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $5,028 million in 2022. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Oracle Corporation's cash flow in 2022 highlights a substantial positive cash flow from investing activities, which is notable given the significant outflow in financing activities. The decrease in cash balance reflects the company's strategic financial decisions, including significant expenditures on financing activities. Despite these outflows, Oracle maintained a healthy free cash flow, indicating strong operational performance and the ability to fund future investments or shareholder returns.