Adobe Systems Incorporated (ADBE)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables turnover	9.61	8.60	10.00	—	8.51	—	—	—	8.41	—	—	—	9.20	9.44	8.79	8.39	7.30	7.77	7.94	—
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
Working capital turnover	41.99	6.75	8.91	19.89	20.28	16.36	31.92	57.86	9.09	6.22	7.44	8.67	4.89	5.51	8.11	9.50	—	—	—	—

Based on the activity ratios provided for Adobe Systems Incorporated, we can draw some important insights:

1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company is collecting on its credit sales during a specific period.
- Adobe's receivables turnover has shown fluctuations over the periods with values ranging from 7.30 to 10.00.
- A higher receivables turnover ratio indicates that Adobe is collecting its accounts receivable more quickly, which is a positive sign.
- The increase in the receivables turnover ratio shows that Adobe has been improving its credit collection efficiency.

2. Payables Turnover:
- The payables turnover ratio reflects how many times a company pays off its accounts payable within a given period.
- Adobe's payables turnover ratio has been relatively stable over the periods, ranging between 5.40 and 9.18.
- A lower payables turnover ratio could suggest that Adobe is taking longer to pay its suppliers, which may have working capital implications.
- The stability of the payables turnover ratio implies that Adobe has been managing its payables effectively without significant variations.

3. Working Capital Turnover:
- The working capital turnover ratio evaluates how effectively a company utilizes its working capital to generate sales.
- Adobe's working capital turnover has shown significant variations, ranging from 4.89 to 57.86.
- A higher working capital turnover ratio indicates that Adobe is efficiently using its working capital to support its operations.
- The substantial fluctuation in the working capital turnover ratio may imply changes in Adobe's operating efficiency and capital management strategies over the periods.

Overall, the analysis of these activity ratios for Adobe Systems Incorporated provides valuable insights into its efficiency in managing its inventory, receivables, payables, and working capital, highlighting areas of strength and potential improvements in its operational performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	37.97	42.46	36.49	—	42.91	—	—	—	43.43	—	—	—	39.65	38.68	41.52	43.51	49.99	46.98	45.99	—
Number of days of payables	days	46.16	48.77	50.67	50.62	63.90	54.82	65.97	55.79	61.06	67.65	65.22	54.00	64.86	47.87	60.80	56.01	45.62	43.22	42.31	39.78

The Days of Sales Outstanding (DSO) ratio measures the average number of days it takes for Adobe Systems to collect revenue after a sale. The trend in DSO shows a fluctuating pattern over the time period provided, ranging from approximately 36 to 50 days, with some periods showing missing data.

The Days of Inventory on Hand (DOH) ratio, which indicates how long it takes for Adobe Systems to sell its inventory, has missing data throughout the time period provided, making it challenging to analyze this metric thoroughly.

The Number of Days of Payables ratio represents the average number of days it takes for Adobe Systems to pay its liabilities. This ratio shows variations over time, ranging from around 43 to 68 days. Adobe appears to manage its payables effectively, with payment periods generally staying within a reasonable range.

Overall, Adobe Systems' activity ratios suggest some variability in its collection period and payment terms, indicating the need for continued monitoring and potential adjustments to optimize working capital management.

Long-term

	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
Fixed asset turnover	9.95	9.42	9.09	9.15	9.23	9.25	9.33	9.48	9.44	9.27	9.15	8.94	8.48	8.48	8.68	8.70	8.64	8.56	8.38	8.65
Total asset turnover	0.69	0.64	0.64	0.67	0.65	0.64	0.63	0.62	0.58	0.58	0.56	0.55	0.53	0.55	0.56	0.55	0.54	0.53	0.51	0.49

The fixed asset turnover ratio for Adobe Systems Incorporated has remained relatively stable over the past few years, ranging from 8.38 to 9.95. This indicates that the company efficiently generates sales revenue from its investment in fixed assets such as property, plant, and equipment.

On the other hand, the total asset turnover ratio has shown a slightly decreasing trend, fluctuating between 0.49 and 0.69. This suggests that Adobe's ability to generate sales from total assets, including both fixed and current assets, has declined slightly over time.

Overall, while the company continues to effectively utilize its fixed assets to generate sales revenue, there may be opportunities for improvement in optimizing the utilization of total assets to enhance overall operational efficiency and profitability.