Adobe Systems Incorporated (ADBE)

Working capital turnover

		Nov 30, 2024	Nov 29, 2024	Dec 1, 2023	Nov 30, 2023	Dec 2, 2022
Revenue	US$ in thousands	21,505,000	21,505,000	19,409,000	19,409,000	17,606,000
Total current assets	US$ in thousands	11,232,000	11,232,000	11,084,000	11,084,000	8,996,000
Total current liabilities	US$ in thousands	10,521,000	10,521,000	8,251,000	8,251,000	8,128,000
Working capital turnover		30.25	30.25	6.85	6.85	20.28

November 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $21,505,000K ÷ ($11,232,000K – $10,521,000K)
= 30.25

The working capital turnover for Adobe Systems Incorporated has shown fluctuations over the years. In December 2022, the working capital turnover was relatively high at 20.28, indicating efficient utilization of working capital to generate sales. However, in November 2023, the turnover decreased to 6.85 and remained the same in December 2023, reflecting a slowdown in the company's ability to convert working capital into revenue.

The turnover ratio significantly increased in November 2024 to 30.25, suggesting a rapid turnover of working capital to generate sales. This sharp increase could indicate improved efficiency in managing working capital or an increase in sales relative to the level of working capital.

Overall, the working capital turnover for Adobe Systems Incorporated has displayed variability, with periods of both high and low turnover rates. Further analysis of the underlying factors driving these fluctuations would provide deeper insights into the company's working capital management efficiency.