Adobe Systems Incorporated (ADBE)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	2,358,000	2,376,000	2,402,000	2,376,000	2,354,000	2,288,000	2,254,000	2,221,000	2,165,000	2,104,000	2,025,000	1,930,000	1,865,000	1,786,000	1,746,000	1,717,000	1,722,000	1,746,000	1,735,000	1,727,000
Payables	US$ in thousands	361,000	318,000	357,000	300,000	314,000	314,000	346,000	308,000	379,000	316,000	366,000	295,000	312,000	331,000	312,000	254,000	306,000	229,000	289,000	265,000
Payables turnover		6.53	7.47	6.73	7.92	7.50	7.29	6.51	7.21	5.71	6.66	5.53	6.54	5.98	5.40	5.60	6.76	5.63	7.62	6.00	6.52

November 29, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,358,000K ÷ $361,000K
= 6.53

The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable balance. A higher payables turnover ratio generally indicates that a company is paying its suppliers more quickly.

Analyzing Adobe Systems Incorporated's payables turnover over time, we can see fluctuations in the ratio. The ratio ranged from 5.40 to 7.92 over the period from February 28, 2020, to November 29, 2024. Notably, the ratio peaked at 7.92 on March 1, 2024, indicating that Adobe was paying its suppliers more frequently relative to its cost of goods sold at that time.

Overall, Adobe's payables turnover ratio has shown some variability, with values ranging from 5.40 to 7.92. Further analysis of the underlying reasons for these fluctuations and comparison with industry benchmarks could provide additional insights into the company's management of its accounts payable.