Adobe Systems Incorporated (ADBE)

Cash ratio

		Nov 29, 2024	Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020
Cash and cash equivalents	US$ in thousands	7,613,000	7,141,000	4,236,000	3,844,000	4,478,000
Short-term investments	US$ in thousands	273,000	701,000	1,860,000	1,954,000	1,514,000
Total current liabilities	US$ in thousands	10,521,000	8,251,000	8,128,000	6,932,000	5,512,000
Cash ratio		0.75	0.95	0.75	0.84	1.09

November 29, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,613,000K + $273,000K) ÷ $10,521,000K
= 0.75

The cash ratio of Adobe Systems Incorporated has shown fluctuations over the past five years. As of November 27, 2020, the cash ratio was 1.09, indicating that the company had $1.09 in cash and cash equivalents for every dollar of current liabilities. However, this ratio decreased to 0.84 by December 3, 2021, suggesting a reduction in the company's ability to cover its short-term obligations solely with its cash holdings.

Subsequently, the cash ratio further declined to 0.75 by December 2, 2022. This decrease may raise concerns about Adobe's liquidity position and ability to meet its current liabilities using its available cash resources. However, the cash ratio slightly improved to 0.95 by December 1, 2023, indicating a partial recovery in the company's liquidity position.

Nonetheless, by November 29, 2024, the cash ratio fell back to 0.75, which could signal ongoing challenges for Adobe Systems in maintaining adequate cash reserves to cover its short-term obligations. Overall, the fluctuating trend in the cash ratio over the years highlights the importance of monitoring Adobe's liquidity position and cash management practices to ensure the company's financial stability and ability to meet its short-term financial commitments.