Adobe Systems Incorporated (ADBE)

Working capital turnover

		Nov 29, 2024	Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020
Revenue	US$ in thousands	21,505,000	19,409,000	17,606,000	15,785,000	12,868,000
Total current assets	US$ in thousands	11,232,000	11,084,000	8,996,000	8,669,000	8,146,000
Total current liabilities	US$ in thousands	10,521,000	8,251,000	8,128,000	6,932,000	5,512,000
Working capital turnover		30.25	6.85	20.28	9.09	4.89

November 29, 2024 calculation

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

Adobe Systems Incorporated's working capital turnover has shown a significant improvement over the past five years. The ratio has increased steadily from 4.89 in November 27, 2020, to a peak of 30.25 by November 29, 2024. This indicates that Adobe has been able to efficiently utilize its working capital to generate sales revenue.

The notable increase in working capital turnover from 2020 to 2024 suggests that Adobe has become more effective in managing its working capital and converting it into sales. A higher turnover ratio implies that the company is able to sell its products or services more frequently using its working capital, which can be seen as a positive sign of operational efficiency and effective resource management.

The spike in the working capital turnover to 30.25 by November 29, 2024, indicates a significant improvement in the company's working capital management and efficiency in generating sales. This could be attributed to better inventory management, streamlined accounts receivable collection processes, or enhanced payable turnover.

Overall, the trend in Adobe Systems Incorporated's working capital turnover reflects a positive development in the company's operational efficiency and financial performance over the analyzed period.