Adobe Systems Incorporated (ADBE)

Receivables turnover

		Nov 29, 2024	Aug 30, 2024	May 31, 2024	Mar 1, 2024	Dec 1, 2023	Sep 1, 2023	Jun 2, 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
Revenue (ttm)	US$ in thousands	21,505,000	20,947,000	20,429,000	19,936,000	19,409,000	18,886,000	18,429,000	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
Receivables	US$ in thousands	2,072,000	1,802,000	1,612,000	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
Receivables turnover		10.38	11.62	12.67	9.69	8.73	10.21	—	—	8.51	—	—	—	8.41	—	—	—	9.20	9.44	8.79	8.39

November 29, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $21,505,000K ÷ $2,072,000K
= 10.38

The receivables turnover of Adobe Systems Incorporated has shown variability over the past few years. The ratio provides insight into how efficiently the company is managing its accounts receivable by measuring how many times during a period, typically a year, the company collected its average accounts receivable balance.

From February 28, 2020, to November 29, 2024, the receivables turnover ratio ranged from 8.39 to 12.67, with fluctuations observed throughout the period. A higher receivables turnover ratio generally implies that the company is collecting outstanding receivables more quickly, which is a positive sign of efficient operations.

Comparing the turnover ratios over different periods allows for assessing changes in the company's collection efficiency. The trend of the receivables turnover ratio for Adobe Systems Incorporated appears to have increased initially from 2020 to 2021, with values fluctuating around the 8 to 9 range. Subsequently, there was a notable increase in the ratio, reaching 12.67 by May 31, 2024, indicating a significant improvement in collecting receivables.

It is important to note that a very high receivables turnover ratio, while generally positive, may also suggest very strict credit policies that could potentially limit sales. Conversely, a low ratio may indicate issues with collecting outstanding balances in a timely manner.

Overall, the increasing trend in Adobe Systems Incorporated's receivables turnover ratio from 2020 to 2024 signals an enhancement in the company's ability to efficiently convert accounts receivable into cash. This improvement may reflect effective credit management practices, streamlined collection processes, or changes in customer payment behavior.