Adobe Systems Incorporated (ADBE)
Working capital turnover
| Feb 28, 2025 | Nov 30, 2024 | Nov 29, 2024 | Aug 31, 2024 | Aug 30, 2024 | May 31, 2024 | Mar 1, 2024 | Feb 29, 2024 | Dec 1, 2023 | Nov 30, 2023 | Sep 1, 2023 | Aug 31, 2023 | Jun 2, 2023 | May 31, 2023 | Mar 3, 2023 | Feb 28, 2023 | Dec 2, 2022 | Nov 30, 2022 | Sep 2, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 22,334,000 | 22,028,000 | 21,731,000 | 21,307,000 | 21,081,000 | 20,721,000 | 20,460,000 | 20,168,000 | 19,876,000 | 19,644,000 | 19,412,000 | 19,177,000 | 18,942,000 | 18,651,000 | 18,360,000 | 18,138,000 | 17,916,000 | 17,777,000 | 17,638,000 | 17,467,000 |
| Total current assets | US$ in thousands | 10,855,000 | 11,232,000 | 11,232,000 | 10,716,000 | 10,716,000 | 11,023,000 | 10,008,000 | 10,008,000 | 11,084,000 | 11,084,000 | 10,410,000 | 10,410,000 | 9,274,000 | 9,274,000 | 8,342,000 | 8,342,000 | 8,996,000 | 8,996,000 | 8,489,000 | 8,489,000 |
| Total current liabilities | US$ in thousands | 9,163,000 | 10,521,000 | 10,521,000 | 9,644,000 | 9,644,000 | 9,474,000 | 9,537,000 | 9,537,000 | 8,251,000 | 8,251,000 | 8,334,000 | 8,334,000 | 8,019,000 | 8,019,000 | 7,437,000 | 7,437,000 | 8,128,000 | 8,128,000 | 7,438,000 | 7,438,000 |
| Working capital turnover | 13.20 | 30.98 | 30.56 | 19.88 | 19.67 | 13.38 | 43.44 | 42.82 | 7.02 | 6.93 | 9.35 | 9.24 | 15.09 | 14.86 | 20.29 | 20.04 | 20.64 | 20.48 | 16.78 | 16.62 |
February 28, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $22,334,000K ÷ ($10,855,000K – $9,163,000K)
= 13.20
Adobe Systems Incorporated's working capital turnover has shown fluctuations over the given time period. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
From August 31, 2022, to March 3, 2023, the working capital turnover remained relatively stable, ranging between 16.62 and 20.29. This suggests that Adobe was effectively utilizing its working capital during the preceding quarters.
However, from May 31, 2023, to December 1, 2023, there was a noticeable decline in the working capital turnover, dropping to levels below 10. This downward trend may indicate issues with the management of working capital and a potential decline in sales relative to the invested capital.
The ratio significantly surged to 42.82 and 43.44 in February and March 2024, respectively, indicating a very high turnover of working capital during those periods. This spike could suggest improved efficiency in managing working capital or potentially aggressive sales growth initiatives.
The working capital turnover dipped back to around 13 in May 31, 2024, showing a decrease from the high levels seen earlier. Subsequently, from August 30, 2024, to February 28, 2025, the ratio fluctuated between 13.20 and 19.88. These variations indicate some inconsistency in how effectively the company is using its working capital during these periods.
Overall, Adobe Systems Incorporated's working capital turnover has shown a mixture of trends over the given time frame, suggesting varying levels of efficiency in utilizing its working capital to generate sales. It would be essential for the company to closely monitor and manage its working capital to ensure optimal performance in the future.
Peer comparison
Feb 28, 2025
See also:
Adobe Systems Incorporated Working Capital Turnover (Quarterly Data)