Adobe Systems Incorporated (ADBE)

Short-term

Turnover ratios

Adobe Systems Incorporated's activity ratios provide insights into how efficiently the company is managing its assets and operations.

1. Inventory Turnover: Unfortunately, there is no data available for Adobe's inventory turnover ratio, making it challenging to assess how quickly the company is selling its inventory.

2. Receivables Turnover: Over the years, Adobe's receivables turnover ratio has shown some fluctuations. The company's ability to collect outstanding receivables improved from 8.39 in February 2020 to 12.67 in May 2024, indicating that Adobe is collecting its accounts receivable more efficiently.

3. Payables Turnover: Adobe's payables turnover ratio has also varied over time. The company's payment cycle to its suppliers ranged from 5.40 in September 2021 to 7.92 in March 2024. A higher turnover ratio suggests that Adobe is managing its payables effectively, possibly negotiating better payment terms.

4. Working Capital Turnover: Adobe's working capital turnover ratio has shown significant fluctuations, ranging from 4.89 in November 2020 to 57.86 in March 2022. A higher turnover ratio indicates that Adobe is generating higher revenue relative to its working capital, which could be a reflection of efficient asset utilization.

Overall, while the company's inventory turnover data is unavailable, the analysis suggests that Adobe has been improving its efficiency in managing receivables, payables, and working capital over the years, which is generally positive for its operational performance and financial health.

---

Average number of days

The Days of Inventory on Hand (DOH) ratio for Adobe Systems Incorporated was not provided in the data, indicating that the company's inventory turnover was not disclosed for the periods listed.

The Days of Sales Outstanding (DSO) ratio, which measures how quickly Adobe collects its accounts receivable, shows a fluctuating trend over the periods analyzed. DSO decreased from 43.51 days on February 28, 2020, to 28.80 days on May 31, 2024, reflecting an improvement in the efficiency of the company's accounts receivable collection process.

The Number of Days of Payables ratio, representing how long it takes Adobe to pay its suppliers, also displays variations. The company's payment cycle decreased from 56.01 days on February 28, 2020, to 48.69 days on December 1, 2023, before increasing slightly to 55.88 days on November 29, 2024.

Overall, the analysis of Adobe Systems' activity ratios indicates improvements in its accounts receivable collection efficiency and payment cycle management, which may positively impact the company's working capital management and liquidity position.

---

See also:

Adobe Systems Incorporated Short-term (Operating) Activity Ratios (Quarterly Data)

---

Long-term

The fixed asset turnover ratio for Adobe Systems Incorporated has been steadily increasing over the past few years, indicating that the company is generating more revenue relative to its investment in fixed assets. This suggests improved efficiency in utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also shown an increasing trend, implying that Adobe is becoming more effective in utilizing all its assets, both fixed and current, to generate sales. This indicates improved overall efficiency in generating sales from its total asset base.

Both ratios reflect positively on Adobe's operational performance and efficiency in utilizing its assets to drive revenue growth. The increasing trend in these ratios suggest that Adobe is effectively managing its assets to generate sales, which is a key indicator of company performance and operational efficiency.

---

See also:

Adobe Systems Incorporated Long-term (Investment) Activity Ratios (Quarterly Data)