Adobe Systems Incorporated (ADBE)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,758,000 | 7,613,000 | 7,613,000 | 7,193,000 | 7,193,000 | 7,660,000 | 6,254,000 | 6,254,000 | 7,141,000 | 7,141,000 | 6,601,000 | 6,601,000 | 5,456,000 | 5,456,000 | 4,072,000 | 4,072,000 | 4,236,000 | 4,236,000 | 3,870,000 | 3,870,000 |
| Short-term investments | US$ in thousands | 677,000 | 273,000 | 273,000 | 322,000 | 322,000 | 405,000 | 566,000 | 566,000 | 701,000 | 701,000 | 915,000 | 915,000 | 1,145,000 | 1,145,000 | 1,581,000 | 1,581,000 | 1,860,000 | 1,860,000 | 1,894,000 | 1,894,000 |
| 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 |
| Cash ratio | 0.81 | 0.75 | 0.75 | 0.78 | 0.78 | 0.85 | 0.72 | 0.72 | 0.95 | 0.95 | 0.90 | 0.90 | 0.82 | 0.82 | 0.76 | 0.76 | 0.75 | 0.75 | 0.77 | 0.77 |
February 28, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,758,000K
+ $677,000K)
÷ $9,163,000K
= 0.81
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet immediate obligations using available cash on hand. Looking at the data for Adobe Systems Incorporated:
- The cash ratio remained relatively stable around 0.75 to 0.82 from August 2022 to June 2023.
- There was a notable increase in the cash ratio to 0.90 by September 2023 and further to 0.95 by December 2023, indicating a significant improvement in the company's liquidity position.
- However, there was a slight decrease to 0.72 by March 2024 before rebounding to 0.85 by May 2024.
- The cash ratio fluctuated between 0.75 and 0.81 from November 2024 to February 2025.
Overall, the trend in Adobe Systems' cash ratio shows some volatility, with periods of improvement followed by slight decreases. It would be important to further analyze the company's cash management and short-term liquidity to understand the underlying reasons for these fluctuations and assess the company's ability to handle its short-term financial obligations effectively.
Peer comparison
Feb 28, 2025