Adobe Systems Incorporated (ADBE)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	35.17	31.40	28.80	37.66	41.82	35.75	—	—	42.91	—	—	—	43.43	—	—	—	39.65	38.68	41.52	43.51
Number of days of payables	days	55.88	48.85	54.25	46.09	48.69	50.09	56.03	50.62	63.90	54.82	65.97	55.79	61.06	67.65	65.22	54.00	64.86	47.87	60.80	56.01
Cash conversion cycle	days	-20.71	-17.45	-25.45	-8.43	-6.86	-14.34	-56.03	-50.62	-20.98	-54.82	-65.97	-55.79	-17.64	-67.65	-65.22	-54.00	-25.21	-9.19	-19.28	-12.50

November 29, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 35.17 – 55.88
= -20.71

The cash conversion cycle of Adobe Systems Incorporated has shown fluctuating patterns over the past few years. During the period from February 28, 2020, to November 29, 2024, the company has consistently maintained negative cash conversion cycle figures, indicating efficient management of its working capital.

The trend in the cash conversion cycle has displayed periods of both improvement and deterioration. For instance, there was a notable increase in efficiency from August 28, 2020, to March 5, 2021, where the cycle decreased significantly from -9.19 days to -54.00 days, suggesting the company was able to convert its inventory and receivables into cash at a much faster rate.

However, there were instances where the efficiency decreased, such as from June 4, 2021, to September 2, 2022, where the cash conversion cycle increased from -65.22 days to -54.82 days. This indicates a minor delay in converting its resources into cash during that period.

Overall, Adobe Systems Incorporated's cash conversion cycle has generally remained at efficient levels, with the company successfully managing its working capital to generate cash quickly. Maintaining a negative cash conversion cycle implies that the company has been efficient in managing its cash flows, inventory, and receivables, ultimately contributing to its overall financial health.