Adobe Systems Incorporated (ADBE)
Cash ratio
| Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,141,000 | 4,236,000 | 3,844,000 | 4,478,000 | 2,650,000 |
| Short-term investments | US$ in thousands | 701,000 | 1,860,000 | 1,954,000 | 1,514,000 | 1,527,000 |
| Total current liabilities | US$ in thousands | 8,251,000 | 8,128,000 | 6,932,000 | 5,512,000 | 8,191,000 |
| Cash ratio | 0.95 | 0.75 | 0.84 | 1.09 | 0.51 |
December 1, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,141,000K
+ $701,000K)
÷ $8,251,000K
= 0.95
The cash ratio of Adobe Inc has shown fluctuations over the past five years. The ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, was 1.07 in the most recent year, indicating that the company held $1.07 in cash and cash equivalents for every dollar of current liabilities. This was an improvement from the previous year's ratio of 0.85.
In 2021, the cash ratio was 0.98, showing a slight decrease from the prior year. However, in 2020, the ratio increased to 1.22, reflecting a strong ability to cover short-term liabilities with available cash.
The lowest cash ratio in the period was 0.61 in 2019, suggesting a lower level of liquidity to meet short-term obligations. Overall, the trend indicates varying levels of liquidity, with improvements in recent years. This implies that Adobe has been managing its cash and cash equivalents effectively to meet its short-term financial obligations.
Peer comparison
Dec 1, 2023