Adobe Systems Incorporated (ADBE)

Days of sales outstanding (DSO)

		Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020	Nov 29, 2019
Receivables turnover		8.73	8.51	8.41	9.20	7.30
DSO	days	41.82	42.91	43.43	39.65	49.99

December 1, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.73
= 41.82

To analyze Adobe Inc's days of sales outstanding (DSO), we can see a declining trend over the past five years. The DSO decreased from 50.15 days in 2019 to 41.82 days in 2023. This indicates that the company has been able to collect its accounts receivable more efficiently over the years.

A decreasing DSO is generally positive, as it suggests that the company is collecting payments from its customers more quickly, which can improve cash flow and liquidity. A lower DSO can also indicate effective credit and collection management practices.

However, it's important to note that a very low DSO could also indicate overly aggressive credit policies or potential issues with customer payment behavior. Therefore, it's essential for Adobe Inc to continue monitoring its DSO and consider the reasons behind this trend.

Overall, the decreasing trend in DSO for Adobe Inc is a positive indicator of efficient accounts receivable management, but further analysis of the company's credit and collection practices would provide a more comprehensive understanding.