Adobe Systems Incorporated (ADBE)

Days of sales outstanding (DSO)

		Mar 1, 2024	Dec 1, 2023	Sep 1, 2023	Mar 3, 2023	Dec 2, 2022	Sep 2, 2022	Jun 3, 2022	Mar 4, 2022	Dec 3, 2021	Sep 3, 2021	Jun 4, 2021	Mar 5, 2021	Nov 27, 2020	Aug 28, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Receivables turnover		9.61	8.60	10.00	—	8.51	—	—	—	8.41	—	—	—	9.20	9.44	8.79	8.39	7.30	7.77	7.94	—
DSO	days	37.97	42.46	36.49	—	42.91	—	—	—	43.43	—	—	—	39.65	38.68	41.52	43.51	49.99	46.98	45.99	—

March 1, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.61
= 37.97

Days Sales Outstanding (DSO) is a key metric used to assess how efficiently a company is managing its accounts receivable. It indicates the average number of days it takes a company to collect revenue after a sale has been made.

Analyzing the DSO trend for Adobe Systems Incorporated over the past few quarters, we observe fluctuations in the collection period. This fluctuation could be influenced by various factors such as sales volume, payment terms, economic conditions, and the company's credit policies.

The DSO for Adobe Systems Incorporated varies between 36.49 days to 49.99 days, indicating that the company takes roughly between 1 to 2 months on average to collect its accounts receivable. A lower DSO is generally favorable as it signifies that the company is collecting revenue more quickly, whereas a higher DSO suggests that the company may be facing challenges in collecting payments promptly.

It is noteworthy that some quarters have missing DSO data, which could limit the accuracy of trend analysis. Therefore, it is important for the company to consistently monitor and manage its DSO to ensure efficient cash flow and liquidity.

Overall, a detailed examination of the DSO trend in conjunction with other financial metrics could provide a more comprehensive understanding of Adobe Systems Incorporated's accounts receivable management and overall financial health.