Adobe Systems Incorporated (ADBE)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,372,000 | 2,350,000 | 2,262,000 | 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 | 1,672,000 | 1,579,262 | 1,458,754 | 1,333,098 |
| Payables | US$ in thousands | 300,000 | 314,000 | 314,000 | 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 | 209,000 | 186,999 | 169,101 | 145,292 |
| Payables turnover | 7.91 | 7.48 | 7.20 | 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 | 8.00 | 8.45 | 8.63 | 9.18 |
March 1, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,372,000K ÷ $300,000K
= 7.91
The payables turnover ratio of Adobe Systems Incorporated has fluctuated over the periods analyzed. The ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays off its average accounts payable balance over a specific period.
The payables turnover ratio for Adobe Systems has ranged from 5.40 to 9.18 over the past few years. A higher payables turnover ratio generally indicates that a company is taking fewer days to pay off its suppliers, which can be a positive sign of liquidity and efficient working capital management.
In the most recent period, the payables turnover ratio stood at 7.91, reflecting an improvement compared to the previous quarters. This indicates that Adobe Systems is managing its accounts payable effectively and may be optimizing its working capital by paying its suppliers in a timely manner.
Overall, it is essential for Adobe Systems to maintain a balanced approach to managing its accounts payable to ensure healthy supplier relationships while optimizing its liquidity and operational efficiency.
Peer comparison
Mar 1, 2024
See also:
Adobe Systems Incorporated Payables Turnover (Quarterly Data)