Adobe Systems Incorporated (ADBE)

Working capital 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
Total current assets	US$ in thousands	10,008,000	11,084,000	10,410,000	8,342,000	8,996,000	8,489,000	7,908,000	7,476,000	8,669,000	8,619,000	8,078,000	7,384,000	8,146,000	7,387,000	6,649,000	6,455,000	6,495,000	5,750,100	5,342,640	5,133,720
Total current liabilities	US$ in thousands	9,537,000	8,251,000	8,334,000	7,437,000	8,128,000	7,438,000	7,385,000	7,197,000	6,932,000	6,191,000	6,145,000	5,806,000	5,512,000	5,130,000	5,164,000	5,228,000	8,191,000	7,802,970	7,687,100	5,313,740
Working capital turnover		41.99	6.75	8.91	19.89	20.28	16.36	31.92	57.86	9.09	6.22	7.44	8.67	4.89	5.51	8.11	9.50	—	—	—	—

March 1, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $19,775,000K ÷ ($10,008,000K – $9,537,000K)
= 41.99

The working capital turnover ratio measures how effectively a company utilizes its working capital to generate revenue. A higher turnover ratio indicates that the company efficiently converts working capital into sales.

Analyzing Adobe Systems Incorporated's working capital turnover over the past few quarters, we observe significant fluctuations. The data shows that the working capital turnover ratio has ranged from as low as 4.89 to as high as 57.86, with a large variation across quarters.

In general, a high working capital turnover ratio like 57.86 (Mar 4, 2022) suggests that Adobe efficiently manages its working capital to support sales growth. On the other hand, a lower ratio like 4.89 (Mar 5, 2021) indicates a less effective utilization of working capital relative to sales generation.

The fluctuating nature of Adobe's working capital turnover ratio may be attributed to various factors such as seasonal sales patterns, changes in operational efficiency, or shifts in working capital management strategies.

Overall, a comprehensive analysis of Adobe Systems Incorporated's working capital turnover ratio highlights the company's ability to efficiently leverage its working capital to drive revenue generation, despite the fluctuations observed over the analyzed periods.