Adobe Systems Incorporated (ADBE)

Days of sales outstanding (DSO)

		Nov 29, 2024	Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020
Receivables turnover		10.38	8.73	8.51	8.41	9.20
DSO	days	35.17	41.82	42.91	43.43	39.65

November 29, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.38
= 35.17

The days of sales outstanding (DSO) is a crucial metric for evaluating a company's efficiency in collecting accounts receivable. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable.

Analyzing the DSO trend of Adobe Systems Incorporated from November 27, 2020, to November 29, 2024, we observe a fluctuating pattern. The DSO was 39.65 days on November 27, 2020, and increased to 43.43 days by December 3, 2021. However, there was a slight improvement to 42.91 days on December 2, 2022, followed by a decrease to 41.82 days by December 1, 2023. The most recent data point shows a further reduction to 35.17 days on November 29, 2024.

It is important to note that a decreasing trend in DSO over time is usually positive, as it signifies faster collections and improved liquidity. In the case of Adobe Systems, the reduction in DSO from 43.43 days in December 2021 to 35.17 days in November 2024 suggests that the company has been managing its accounts receivable more effectively.

Overall, the trend in Adobe Systems' DSO indicates a positive direction in its accounts receivable management, potentially leading to enhanced cash flows and financial stability.