Adobe Systems Incorporated (ADBE)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,254,000 | 7,141,000 | 6,601,000 | 4,072,000 | 4,236,000 | 3,870,000 | 3,365,000 | 2,739,000 | 3,844,000 | 4,623,000 | 4,250,000 | 3,452,000 | 4,478,000 | 3,767,000 | 3,044,000 | 2,688,000 | 2,650,000 | 2,209,000 | 2,083,000 | 1,739,000 |
| Short-term investments | US$ in thousands | 566,000 | 701,000 | 915,000 | 1,581,000 | 1,860,000 | 1,894,000 | 1,934,000 | 1,962,000 | 1,954,000 | 1,541,000 | 1,518,000 | 1,511,000 | 1,514,000 | 1,497,000 | 1,307,000 | 1,483,000 | 1,527,000 | 1,441,740 | 1,396,070 | 1,487,410 |
| 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 |
| Cash ratio | 0.72 | 0.95 | 0.90 | 0.76 | 0.75 | 0.77 | 0.72 | 0.65 | 0.84 | 1.00 | 0.94 | 0.85 | 1.09 | 1.03 | 0.84 | 0.80 | 0.51 | 0.47 | 0.45 | 0.61 |
March 1, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,254,000K
+ $566,000K)
÷ $9,537,000K
= 0.72
The cash ratio of Adobe Systems Incorporated has exhibited some fluctuations over the past few years. The cash ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.
The cash ratio has ranged from a low of 0.45 to a high of 1.09 during the period under review. A higher cash ratio indicates that a company has more cash and cash equivalents relative to its short-term liabilities, which is generally considered a positive sign of financial health and liquidity.
Overall, Adobe's cash ratio has generally been above 0.7, suggesting that the company has had a sufficient amount of cash to cover its short-term obligations in most periods. The cash ratio peaked at 1.09 in March 2021, indicating a strong liquidity position at that time.
However, it is worth noting that the cash ratio dipped to 0.45 in November 2019, which may have raised concerns about the company's ability to cover its short-term liabilities with its available cash on hand. Investors and analysts should monitor the cash ratio over time to assess Adobe's liquidity position and its ability to meet its short-term obligations.
Peer comparison
Mar 1, 2024