Adobe Systems Incorporated (ADBE)

Receivables 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
Revenue (ttm)	US$ in thousands	19,775,000	19,118,000	18,503,000	17,999,000	17,606,000	17,191,000	16,693,000	16,142,000	15,785,000	15,099,000	14,389,000	13,682,000	12,868,000	12,436,000	12,045,000	11,661,000	11,171,000	10,643,620	10,100,700	9,552,060
Receivables	US$ in thousands	2,057,000	2,224,000	1,850,000	—	2,070,000	—	—	—	1,878,000	—	—	—	1,398,000	1,318,000	1,370,000	1,390,000	1,530,000	1,370,000	1,272,670	—
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	—

March 1, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $19,775,000K ÷ $2,057,000K
= 9.61

The receivables turnover ratio for Adobe Systems Incorporated has shown fluctuation over the past few years. The latest reported receivables turnover ratio as of March 1, 2024, stands at 9.61. This indicates that Adobe is able to collect its outstanding accounts receivable approximately 9.61 times during the period covered.

The trend in receivables turnover indicates the efficiency of Adobe in collecting its outstanding receivables. A higher turnover ratio is generally preferred as it suggests faster conversion of receivables into cash, which is a positive sign of liquidity and effective credit management.

In analyzing the historical data, we observe that the receivables turnover ratio has varied between 7.30 to 10.00 over the past few periods. This variability suggests that there may have been fluctuations in customer payment behavior, sales cycles, or credit policies during these periods.

Overall, a higher receivables turnover ratio is favorable, indicating that Adobe is efficient in managing its accounts receivable and collecting payments in a timely manner. Monitoring this ratio over time can provide insights into the company's credit and collection practices and its overall financial health.