2024 Cash Flow Analysis for Oracle Corporation ORCL

Oracle Corporation is a global leader in database software and technology, cloud-engineered systems, and enterprise software products. Founded in 1977, the company is headquartered in Austin, Texas. Oracle is renowned for its comprehensive and fully integrated stack of cloud applications and platform services.

The cash flow statement is a crucial financial document that details how much cash or cash equivalents a company has generated and used 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 to assess how a company manages its cash resources.

How to read the chart

The chart above illustrates the cash flow of Oracle Corporation in 2024. The width of the bars signifies the magnitude of cash flow, with wider bars representing larger amounts.

We begin on the left with Oracle's cash position at the start of the fiscal year. The cash increased during the year, indicating that the company effectively managed its cash resources. The cash flow from operating activities is the most significant source of cash, while investing activities resulted in a cash outflow.

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

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

Real-Time Cash Flow Counter

To illustrate the scale of Oracle Corporation's cash flow, we have developed a real-time counter that simulates the company's cash flow for 2024. The counter activates when you scroll to this section and operates at the same speed as the company's reported cash flow.

This is a simulated counter based on Oracle's reported cash flow for 2024, not a live counter of actual cash flows. It is designed to provide a sense of the scale of the company's cash flow and the speed at which it moves.

Cash Flow Statement

In 2024, Oracle Corporation generated $18,673 million in cash from operating activities, spent $7,360 million on investing activities, and used $10,554 million for financing activities. Consequently, the company's cash balance increased by $689 million over the fiscal year.

Oracle's beginning cash balance was not specified, but the increase in cash indicates effective cash management. The company's capital expenditures for the year amounted to $6,866 million, representing the cash spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations results in a free cash flow of $11,807 million for 2024. This figure represents the cash Oracle has available for dividends, stock repurchases, or other investments.

Summary

Oracle Corporation's cash flow in 2024 highlights its strong operational cash generation, which significantly exceeds its capital expenditures, resulting in substantial free cash flow. Despite negative cash flows from both investing and financing activities, Oracle managed to increase its cash position by $689 million, showcasing its robust financial health and ability to generate cash from its core operations. This financial strength positions Oracle well for future investments and shareholder returns.