Adobe Systems Incorporated (ADBE)
Inventory turnover
| Nov 30, 2024 | Nov 29, 2024 | Dec 1, 2023 | Nov 30, 2023 | Dec 2, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,358,000 | 2,358,000 | 2,354,000 | 2,354,000 | 2,165,000 |
| Inventory | US$ in thousands | — | — | — | — | — |
| Inventory turnover | — | — | — | — | — |
November 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,358,000K ÷ $—K
= —
The inventory turnover ratio for Adobe Systems Incorporated has been consistent at zero for the past five years. This indicates that the company is not efficiently managing its inventory and may have excess or obsolete inventory levels. A low or zero inventory turnover ratio can tie up valuable capital in unsold inventory and may lead to increased storage costs and potential write-downs.
It is important for Adobe Systems to closely monitor and address its inventory management practices in order to improve operational efficiency and maximize profitability. Analyzing the reasons behind the low turnover ratio, such as demand forecasting inaccuracies, production inefficiencies, or rapid technological obsolescence, can help the company implement strategies to optimize its inventory turnover and enhance overall financial performance.
Peer comparison
Nov 30, 2024