Adobe Systems Incorporated (ADBE)
Quick 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 | 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 |
| Receivables | US$ in thousands | — | — | 2,072,000 | — | 1,802,000 | — | 2,057,000 | — | 2,224,000 | — | 1,850,000 | — | — | — | — | — | 2,070,000 | — | — | — |
| 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 |
| Quick ratio | 0.81 | 0.75 | 0.95 | 0.78 | 0.97 | 0.85 | 0.93 | 0.72 | 1.22 | 0.95 | 1.12 | 0.90 | 0.82 | 0.82 | 0.76 | 0.76 | 1.00 | 0.75 | 0.77 | 0.77 |
February 28, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,758,000K
+ $677,000K
+ $—K)
÷ $9,163,000K
= 0.81
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 below 1 indicates that a company may have difficulty covering its short-term liabilities. Over the period provided, Adobe Systems Incorporated's quick ratio fluctuated between 0.72 and 1.22.
The quick ratio for Adobe Systems Incorporated ranged from 0.72 to 1.22, indicating some variability in the company's ability to cover its current liabilities with its quick assets. In February 2023 and December 2023, the quick ratio was at its lowest at 0.72, suggesting a potential challenge in meeting short-term obligations with readily available assets. On the other hand, the quick ratio peaked at 1.22 in December 2023 and remained above 1 in September 2023, indicating an improvement in liquidity and the company's ability to easily cover immediate financial obligations.
Overall, Adobe Systems Incorporated's quick ratio shows some fluctuations but generally remains within a reasonable range, with the most recent reported ratio standing at 0.81 as of February 2025. Financial analysts may look for consistency and a trend towards a ratio of 1 or higher to ensure the company's liquidity and ability to meet short-term obligations effectively. Further analysis of the company's financial health and operational efficiency would provide a more comprehensive understanding of its overall financial stability and liquidity position.
Peer comparison
Feb 28, 2025