Adobe Systems Incorporated (ADBE)
Quick ratio
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,613,000 | 7,141,000 | 4,236,000 | 3,844,000 | 4,478,000 |
| Short-term investments | US$ in thousands | 273,000 | 701,000 | 1,860,000 | 1,954,000 | 1,514,000 |
| Receivables | US$ in thousands | 2,072,000 | 2,224,000 | 2,070,000 | 1,878,000 | 1,398,000 |
| Total current liabilities | US$ in thousands | 10,521,000 | 8,251,000 | 8,128,000 | 6,932,000 | 5,512,000 |
| Quick ratio | 0.95 | 1.22 | 1.00 | 1.11 | 1.34 |
November 29, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,613,000K
+ $273,000K
+ $2,072,000K)
÷ $10,521,000K
= 0.95
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory as it indicates that the company has enough liquid assets to cover its current liabilities.
For Adobe Systems Incorporated, the quick ratio has shown some fluctuations over the years based on the provided data:
- November 27, 2020: 1.34
- December 3, 2021: 1.11
- December 2, 2022: 1.00
- December 1, 2023: 1.22
- November 29, 2024: 0.95
The trend of Adobe's quick ratio indicates some variability in its ability to cover short-term obligations with liquid assets. A downward trend in the quick ratio, such as the drop from 1.22 in 2023 to 0.95 in 2024, may raise concerns about liquidity and the company's ability to meet its obligations in the near term.
It is important for investors and analysts to monitor the quick ratio along with other liquidity ratios to assess the financial health and short-term solvency of Adobe Systems Incorporated effectively. A consistent decline in the quick ratio over time may indicate potential liquidity challenges that require further investigation.
Peer comparison
Nov 29, 2024