Adobe Systems Incorporated (ADBE)
Receivables turnover
| Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,409,000 | 17,606,000 | 15,785,000 | 12,868,000 | 11,171,000 |
| Receivables | US$ in thousands | 2,224,000 | 2,070,000 | 1,878,000 | 1,398,000 | 1,530,000 |
| Receivables turnover | 8.73 | 8.51 | 8.41 | 9.20 | 7.30 |
December 1, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $19,409,000K ÷ $2,224,000K
= 8.73
The receivables turnover ratio measures the efficiency of Adobe Inc in collecting its accounts receivable. It is calculated by dividing net credit sales by the average accounts receivable.
Based on the data provided, Adobe Inc's receivables turnover has been relatively stable over the past five years, ranging from 7.28 to 9.20. This suggests that, on average, Adobe Inc collects its accounts receivable approximately 8 times per year, indicating a consistent and effective collection process.
A higher receivables turnover ratio generally indicates a shorter time to collect receivables, which can be a positive sign of strong customer credit policies and efficient collection efforts. Conversely, a lower ratio may indicate potential issues with collecting receivables in a timely manner.
It's important to consider industry benchmarks to fully assess the performance of Adobe Inc in managing its receivables turnover, as the effectiveness of the ratio can vary across different industries.
Peer comparison
Dec 1, 2023