Adobe Systems Incorporated (ADBE)
Number of days of payables
| Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.50 | 5.71 | 5.98 | 5.63 | 8.00 | |
| Number of days of payables | days | 48.69 | 63.90 | 61.06 | 64.86 | 45.60 |
December 1, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.50
= 48.69
To analyze Adobe Inc's number of days of payables, I will calculate the average number of days of payables for the 5-year period. This will provide a more comprehensive view of the company's payables management over time.
The average number of days of payables for Adobe Inc over the 5-year period is calculated as follows:
(48.69 days + 63.90 days + 61.06 days + 64.86 days + 45.71 days) / 5 = 56.644 days
The average number of days of payables for Adobe Inc over the 5-year period is approximately 56.644 days. This indicates that, on average, the company takes around 56.644 days to pay its trade payables.
A lower number of days of payables generally signifies that the company is taking fewer days to pay its suppliers, which may indicate an efficient use of trade credit or strong bargaining power with suppliers. Conversely, a higher number of days of payables may imply that the company is taking longer to settle its trade payables, potentially signaling cash flow management or liquidity concerns.
It's important to compare this figure with industry benchmarks and the company's historical data to gain a better understanding of Adobe Inc's payables management performance. Additionally, analyzing trends and changes in the number of days of payables over time can provide insights into the company's working capital management practices and financial health.
Peer comparison
Dec 1, 2023