Adobe Systems Incorporated (ADBE)
Liquidity ratios
| Nov 29, 2024 | Aug 30, 2024 | May 31, 2024 | Mar 1, 2024 | Dec 1, 2023 | Sep 1, 2023 | Jun 2, 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.07 | 1.11 | 1.16 | 1.05 | 1.34 | 1.25 | 1.16 | 1.12 | 1.11 | 1.14 | 1.07 | 1.04 | 1.25 | 1.39 | 1.31 | 1.27 | 1.48 | 1.44 | 1.29 | 1.23 |
| Quick ratio | 0.95 | 0.97 | 1.02 | 0.93 | 1.22 | 1.12 | 0.82 | 0.76 | 1.00 | 0.77 | 0.72 | 0.65 | 1.11 | 1.00 | 0.94 | 0.85 | 1.34 | 1.28 | 1.11 | 1.06 |
| Cash ratio | 0.75 | 0.78 | 0.85 | 0.72 | 0.95 | 0.90 | 0.82 | 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 |
Adobe Systems Incorporated's liquidity ratios show a varying trend over the period under consideration. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, fluctuated between 1.04 to 1.48. It generally stayed above 1, indicating that Adobe has sufficient current assets to meet its current liabilities. However, the ratio experienced a slight decline in the most recent period to 1.07, which may be a concern for potential liquidity issues.
The quick ratio, a more stringent measure that excludes inventory from current assets, also displayed fluctuations ranging from 0.65 to 1.34. This ratio paints a more conservative picture of liquidity, and while it generally remained above 1, indicating a healthy liquidity position, the downward trend observed in the later periods suggests potential challenges in meeting immediate obligations without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, ranged from 0.72 to 1.09. Adobe demonstrated the ability to cover a portion of its current liabilities with cash holdings, although the ratio also experienced fluctuations. The decreasing trend in the later periods, reaching 0.85 in the latest period, indicates a potential decrease in the company's ability to settle immediate liabilities with cash on hand.
In summary, while Adobe Systems Incorporated generally maintained healthy liquidity levels over the period, the declining trend in the current and cash ratios in the most recent periods suggests a need for monitoring liquidity closely to ensure the company can meet its short-term obligations effectively.
See also:
Adobe Systems Incorporated Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| Nov 29, 2024 | Aug 30, 2024 | May 31, 2024 | Mar 1, 2024 | Dec 1, 2023 | Sep 1, 2023 | Jun 2, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -20.71 | -17.45 | -25.45 | -8.43 | -6.86 | -14.34 | -56.03 | -50.62 | -20.98 | -54.82 | -65.97 | -55.79 | -17.64 | -67.65 | -65.22 | -54.00 | -25.21 | -9.19 | -19.28 | -12.50 |
The cash conversion cycle of Adobe Systems Incorporated has shown fluctuating trends over the periods provided in the data. The company managed to significantly reduce its cash conversion cycle from around -12.50 days to -67.65 days. A negative cash conversion cycle indicates that the company is efficiently managing its working capital by quickly converting inventory into cash.
However, there were periods where the cash conversion cycle increased slightly before decreasing again. This may be due to changes in the company's inventory turnover rate, accounts receivable collection period, or accounts payable payment period.
Overall, Adobe Systems Incorporated has been successful in maintaining a negative cash conversion cycle, which signifies effective management of its operating cycle and working capital. This indicates that the company is efficient in generating cash flows from its core operations and can potentially reinvest these funds back into the business or utilize them for other strategic purposes.