Adobe Systems Incorporated (ADBE)
Current ratio
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 11,232,000 | 11,084,000 | 8,996,000 | 8,669,000 | 8,146,000 |
| Total current liabilities | US$ in thousands | 10,521,000 | 8,251,000 | 8,128,000 | 6,932,000 | 5,512,000 |
| Current ratio | 1.07 | 1.34 | 1.11 | 1.25 | 1.48 |
November 29, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $11,232,000K ÷ $10,521,000K
= 1.07
The current ratio of Adobe Systems Incorporated has fluctuated over the past five years. As of November 27, 2020, the current ratio stood at 1.48, indicating that the company had $1.48 in current assets for every $1 in current liabilities. However, by December 3, 2021, the ratio had decreased to 1.25, suggesting a potential decrease in the company's liquidity position.
The trend continued, as the current ratio further declined to 1.11 by December 2, 2022, signaling a potential strain on Adobe's short-term financial obligations. The situation improved slightly by December 1, 2023, with the current ratio increasing to 1.34, indicating a better liquidity position compared to the previous year.
Most recently, as of November 29, 2024, the current ratio dropped to 1.07, falling below the ideal ratio of 2:1. This could imply that Adobe may face challenges in meeting its current liabilities with its current assets in the short term.
Overall, the fluctuating current ratio of Adobe Systems Incorporated signifies changes in the company's liquidity position and its ability to cover short-term obligations with current assets. It is essential for the company to closely monitor its liquidity position and manage its current assets and liabilities effectively to ensure financial stability and meet its short-term financial obligations.
Peer comparison
Nov 29, 2024