Adobe Systems Incorporated (ADBE)

Days of sales outstanding (DSO)

		Nov 29, 2024	Aug 30, 2024	May 31, 2024	Mar 1, 2024	Dec 1, 2023	Sep 1, 2023	Jun 2, 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
Receivables turnover		10.38	11.62	12.67	9.69	8.73	10.21	—	—	8.51	—	—	—	8.41	—	—	—	9.20	9.44	8.79	8.39
DSO	days	35.17	31.40	28.80	37.66	41.82	35.75	—	—	42.91	—	—	—	43.43	—	—	—	39.65	38.68	41.52	43.51

November 29, 2024 calculation

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

The Days of Sales Outstanding (DSO) for Adobe Systems Incorporated has shown fluctuations over the past few years. The DSO measures the average number of days it takes for a company to collect payment after a sale has been made.

Analyzing the data provided, we can see that the DSO for Adobe Systems decreased from 43.51 days on February 28, 2020, to 28.80 days on May 31, 2024. This shows an improvement in the company's ability to collect payments from customers more efficiently.

There were variations in the DSO during this period, with some periods showing a slight increase in DSO such as on December 3, 2021, and December 1, 2023. However, overall, there has been a positive trend towards a lower DSO, indicating that Adobe Systems has been managing their accounts receivable effectively.

It is important for companies to have a low DSO as it signifies efficient management of accounts receivable and timely collection of payments, which ultimately impacts the company's cash flow and liquidity position. Adobe Systems should continue to monitor and analyze their DSO to ensure a healthy cash conversion cycle and optimize their working capital management.