Oracle Corporation is a leading multinational technology company that specializes in developing and marketing database software and technology, cloud-engineered systems, and enterprise software products. Headquartered in Austin, Texas, Oracle was founded in 1977 and has become a prominent player in the software industry, known for its comprehensive suite of cloud applications and platform services.
The cash flow statement is a crucial financial document that illustrates how much cash or cash equivalents a company has generated and utilized over a specific period. It is divided into three main sections: operating activities, investing activities, and financing activities. This statement is essential for investors and analysts as it provides insights into how a company is managing its cash resources.
The chart above illustrates the cash flow of Oracle Corporation in 2023. The width of the bars indicates the amount of cash flow, with wider bars representing larger amounts.
On the left, we begin with Oracle's cash position at the start of the fiscal year. During the year, the cash position decreased, indicating that a portion of the cash was used for financing and investing activities. The cash flow from operating activities was the primary source of cash, while investing activities resulted in a significant outflow.
The cash flow from investing activities is negative, suggesting that Oracle spent more on new investments and asset acquisitions than it received from selling assets or investments. Conversely, the cash flow from financing activities is positive, indicating that the company raised more cash through means such as issuing debt or equity than it spent on debt repayments, share buybacks, or dividend payments.
After accounting for the change in cash, we conclude on the right with Oracle's cash position at the end of the fiscal year.
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 2023. 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 occur, but a simulation based on Oracle's reported cash flow for 2023. The counter aims to give you an understanding of the scale of the company's cash flow and its rapid movement.
In 2023, Oracle Corporation generated $17,165 million in cash from operating activities, spent $36,484 million on investing activities, and raised $7,910 million through financing activities. Consequently, the company's cash balance decreased by $11,618 million over the fiscal year.
Oracle's capital expenditures for the year amounted to $8,695 million, representing the cash spent on investments in property, plant, and equipment. By subtracting capital expenditures from cash flow from operations, Oracle's free cash flow was $8,470 million in 2023. This figure represents the cash available for dividends, stock repurchases, or other investments.
| Cash Flow from Operations | 17,165 |
| Cash Flow from Investing | -36,484 |
| Cash Flow from Financing | 7,910 |
| Changes in Cash | -11,409 |
| Effect of Exchange Rate Changes | -209 |
| Beginning Cash Position | 21,383 |
| Ending Cash Position | 9,765 |
| Capital Expenditures | -8,695 |
| Free Cash Flow | 8,470 |
All amounts in USD (Millions)
Oracle Corporation experienced a substantial decrease in its cash position during the fiscal year 2023, primarily due to significant investments in new assets and projects, as reflected in the negative cash flow from investing activities. Despite this, the company maintained a strong cash flow from operating activities, which provided a solid foundation for its operations. The positive cash flow from financing activities indicates that Oracle successfully raised funds to support its strategic initiatives. Overall, Oracle's cash flow management reflects its commitment to growth and investment in future opportunities.
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