Adobe Systems Incorporated (ADBE)

Activity ratios

Short-term

Turnover ratios

	Nov 30, 2024	Nov 29, 2024	Dec 1, 2023	Nov 30, 2023	Dec 2, 2022
Inventory turnover	—	—	—	—	—
Receivables turnover	—	10.38	8.73	—	8.51
Payables turnover	—	6.53	7.50	—	5.71
Working capital turnover	30.25	30.25	6.85	6.85	20.28

1. Inventory Turnover:
- The inventory turnover ratio for Adobe Systems Incorporated was not available for the periods mentioned in the data. This indicates that specific information on how efficiently the company is managing its inventory relative to sales turnover is not provided.

2. Receivables Turnover:
- Adobe Systems Incorporated had a receivables turnover ratio of 8.51 for December 2, 2022, which increased to 8.73 for December 1, 2023, and further improved to 10.38 for November 29, 2024. This trend suggests that the company is collecting its accounts receivable more efficiently over time.

3. Payables Turnover:
- The payables turnover ratio was 5.71 for December 2, 2022, which saw an increase to 7.50 for December 1, 2023, and a slight decrease to 6.53 for November 29, 2024. This indicates that Adobe is taking longer to pay its suppliers in 2024 compared to the previous years.

4. Working Capital Turnover:
- The working capital turnover ratio for Adobe Systems Incorporated stood at 20.28 for December 2, 2022, showing a significant decrease to 6.85 for both November 30, 2023, and December 1, 2023. However, there was a substantial improvement to 30.25 for both November 29, 2024, and November 30, 2024, signifying a more efficient utilization of working capital in generating sales revenue.

In conclusion, Adobe Systems showed improvements in receivables turnover and working capital turnover over the periods analyzed. However, the lack of data for inventory turnover and the mixed performance in payables turnover suggest areas that may require further attention to optimize operational efficiency.

Average number of days

		Nov 30, 2024	Nov 29, 2024	Dec 1, 2023	Nov 30, 2023	Dec 2, 2022
Days of inventory on hand (DOH)	days	—	—	—	—	—
Days of sales outstanding (DSO)	days	—	35.17	41.82	—	42.91
Number of days of payables	days	—	55.88	48.69	—	63.90

The Days of Inventory on Hand (DOH) for Adobe Systems Incorporated have not been provided in the data, indicating it is not available for analysis over the given time periods.

The Days of Sales Outstanding (DSO) for Adobe Systems show a decreasing trend over the available periods, from 42.91 days on December 2, 2022, to 35.17 days on November 29, 2024. This indicates that the company is collecting its accounts receivable more efficiently and quickly.

The Number of Days of Payables for Adobe Systems has also not been provided for all periods, with data missing for certain years. However, it can be observed that the number of days payable has decreased from 63.90 days on December 2, 2022, to 55.88 days on November 29, 2024 (based on available data), suggesting a reduction in the time taken to pay its suppliers.

Overall, the trend in DSO and Days of Payables for Adobe Systems indicates an improvement in the efficiency of the company's working capital management, with faster collection of receivables and a decrease in the time taken to pay its outstanding liabilities.

Long-term

	Nov 30, 2024	Nov 29, 2024	Dec 1, 2023	Nov 30, 2023	Dec 2, 2022
Fixed asset turnover	—	11.11	9.56	—	9.23
Total asset turnover	0.71	0.71	0.65	0.65	0.65

Long-term activity ratios provide insight into how effectively a company is utilizing its assets to generate revenue over a longer period. In the case of Adobe Systems Incorporated, we will focus on two key ratios: Fixed Asset Turnover and Total Asset Turnover.

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio indicates how efficiently the company is using its fixed assets to generate sales.
- In December 2022, the Fixed Asset Turnover ratio was 9.23, suggesting that Adobe was able to generate $9.23 in revenue for every $1 of fixed assets.
- The ratio was not available for November 30, 2023, but it increased to 9.56 by December 1, 2023, indicating improved efficiency in asset utilization.
- By November 29, 2024, the Fixed Asset Turnover ratio further improved to 11.11, signifying even better utilization of fixed assets.

2. Total Asset Turnover:
- The Total Asset Turnover ratio reflects how well the company is using all its assets, both fixed and current, to generate sales.
- For the periods under consideration, the Total Asset Turnover ratio remained fairly constant at 0.65 from December 2, 2022, to December 1, 2023.
- Subsequently, the ratio increased to 0.71 by November 29, 2024, indicating an improvement in the overall efficiency of asset utilization to generate sales.

Overall, the analysis of Adobe Systems' long-term activity ratios suggests a positive trend in asset utilization efficiency, with both Fixed Asset Turnover and Total Asset Turnover ratios showing improvements over the period, reflecting the company's ability to generate more revenue per dollar of assets employed.