Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Adobe Inc., liquidity ratios
Based on: 10-K (reporting date: 2025-11-28), 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27).
The liquidity position, as indicated by the presented ratios, demonstrates a generally declining trend over the observed period. While fluctuations occur, the overall movement suggests a decreasing ability to meet short-term obligations using readily available assets. This analysis focuses on the trends of the current, quick, and cash ratios.
- Current Ratio
- The current ratio experienced an initial decrease from 1.48 in 2020 to 1.11 in 2022, indicating a reduced capacity to cover current liabilities with current assets. A slight recovery to 1.34 was noted in 2023, but this was followed by a further decline to 1.07 in 2024 and 1.00 in 2025. This suggests increasing pressure on short-term liquidity and a potential reliance on more efficient asset management or external financing.
- Quick Ratio
- The quick ratio mirrors the trend observed in the current ratio, decreasing from 1.34 in 2020 to 1.00 in 2022. A subsequent increase to 1.22 in 2023 was observed, but this was followed by a decline to 0.95 in 2024 and 0.88 in 2025. The quick ratio’s consistent decline indicates a weakening ability to meet short-term obligations with the most liquid assets, excluding inventory. This could be due to changes in the composition of current assets or an increase in current liabilities.
- Cash Ratio
- The cash ratio exhibits a consistent downward trend throughout the period. Starting at 1.09 in 2020, it decreased to 0.65 by 2025. This indicates a diminishing proportion of current assets held in cash and cash equivalents, and a reduced capacity to cover immediate liabilities with the most liquid of assets. The consistent decline suggests a strategic shift in asset allocation or a need to deploy cash for operational or investment purposes.
- Overall Trend
- The simultaneous decline across all three liquidity ratios – current, quick, and cash – suggests a systematic reduction in the company’s short-term liquidity. While the ratios remain above zero, the consistent downward trajectory warrants monitoring. Further investigation into the underlying drivers of these changes, such as shifts in working capital management, debt levels, and asset utilization, is recommended.
Current Ratio
Adobe Inc., current ratio calculation, comparison to benchmarks
| Nov 28, 2025 | Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 10,163) | 11,232) | 11,084) | 8,996) | 8,669) | 8,146) | |
| Current liabilities | 10,200) | 10,521) | 8,251) | 8,128) | 6,932) | 5,512) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.00 | 1.07 | 1.34 | 1.11 | 1.25 | 1.48 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | 1.42 | 1.10 | 1.30 | 1.23 | 1.25 | 1.40 | |
| AppLovin Corp. | — | 2.19 | 1.71 | 3.35 | 5.05 | — | |
| Cadence Design Systems Inc. | — | 2.93 | 1.24 | 1.27 | 1.77 | 1.86 | |
| CrowdStrike Holdings Inc. | 1.77 | 1.76 | 1.73 | 1.83 | 2.65 | 2.38 | |
| Datadog Inc. | — | 2.64 | 3.17 | 3.09 | 3.54 | 5.77 | |
| International Business Machines Corp. | — | 1.04 | 0.96 | 0.92 | 0.88 | 0.98 | |
| Intuit Inc. | 1.36 | 1.29 | 1.47 | 1.39 | 1.94 | 2.26 | |
| Microsoft Corp. | 1.35 | 1.27 | 1.77 | 1.78 | 2.08 | 2.52 | |
| Oracle Corp. | 0.75 | 0.72 | 0.91 | 1.62 | 2.30 | 3.03 | |
| Palantir Technologies Inc. | — | 5.96 | 5.55 | 5.17 | 4.34 | 3.74 | |
| Palo Alto Networks Inc. | 0.94 | 0.89 | 0.78 | 0.77 | 0.91 | 1.91 | |
| Salesforce Inc. | 1.06 | 1.09 | 1.02 | 1.05 | 1.23 | 1.08 | |
| ServiceNow Inc. | — | 1.10 | 1.06 | 1.11 | 1.05 | 1.21 | |
| Synopsys Inc. | 1.62 | 2.44 | 1.15 | 1.09 | 1.16 | 1.19 | |
| Workday Inc. | 1.90 | 1.97 | 1.75 | 1.03 | 1.12 | 1.04 | |
| Current Ratio, Sector | |||||||
| Software & Services | — | 1.20 | 1.40 | 1.44 | 1.69 | — | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.24 | 1.41 | 1.37 | 1.55 | — | |
Based on: 10-K (reporting date: 2025-11-28), 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 10,163 ÷ 10,200 = 1.00
2 Click competitor name to see calculations.
The current ratio exhibited fluctuating behavior over the observed period. Initially, the ratio decreased from 1.48 in 2020 to 1.11 in 2022, before increasing to 1.34 in 2023. Subsequently, a declining trend resumed, with the ratio falling to 1.07 in 2024 and further decreasing to 1.00 in 2025.
- Overall Trend
- The overall trend suggests a weakening of the company’s short-term liquidity position. While there was a temporary improvement in 2023, the ratio ultimately trended downwards, reaching 1.00 in the most recent period. This indicates a diminishing ability to cover short-term obligations with short-term assets.
- Initial Decline (2020-2022)
- The decrease in the current ratio from 2020 to 2022 was primarily driven by a faster growth rate in current liabilities compared to current assets. Current liabilities increased from US$5,512 million to US$8,128 million, while current assets grew from US$8,146 million to US$8,996 million over the same period. This disparity suggests increasing pressure on the company’s immediate financial flexibility.
- Temporary Improvement (2022-2023)
- The increase in the current ratio in 2023 was attributable to a more substantial increase in current assets (US$11,084 million) relative to current liabilities (US$8,251 million). This suggests a strengthening of the short-term financial position during that year.
- Recent Decline (2023-2025)
- The subsequent decline from 2023 to 2025 reflects a renewed increase in current liabilities, rising from US$8,251 million to US$10,200 million, while current assets experienced a more moderate increase, peaking at US$11,232 million in 2024 before decreasing to US$10,163 million in 2025. This recent pattern reinforces the concern regarding short-term liquidity.
- Final Value (2025)
- A current ratio of 1.00 in 2025 indicates that the company possesses exactly enough current assets to cover its current liabilities. While not immediately alarming, this level offers limited buffer against unforeseen circumstances or temporary disruptions in cash flow.
Quick Ratio
Adobe Inc., quick ratio calculation, comparison to benchmarks
| Nov 28, 2025 | Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 5,431) | 7,613) | 7,141) | 4,236) | 3,844) | 4,478) | |
| Short-term investments | 1,164) | 273) | 701) | 1,860) | 1,954) | 1,514) | |
| Trade receivables, net of allowances for doubtful accounts | 2,344) | 2,072) | 2,224) | 2,065) | 1,878) | 1,398) | |
| Total quick assets | 8,939) | 9,958) | 10,066) | 8,161) | 7,676) | 7,390) | |
| Current liabilities | 10,200) | 10,521) | 8,251) | 8,128) | 6,932) | 5,512) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.88 | 0.95 | 1.22 | 1.00 | 1.11 | 1.34 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | 1.30 | 0.98 | 1.18 | 1.12 | 1.14 | 1.29 | |
| AppLovin Corp. | — | 2.04 | 1.54 | 3.08 | 4.82 | — | |
| Cadence Design Systems Inc. | — | 2.53 | 1.02 | 1.02 | 1.47 | 1.60 | |
| CrowdStrike Holdings Inc. | 1.58 | 1.60 | 1.58 | 1.68 | 2.50 | 2.18 | |
| Datadog Inc. | — | 2.57 | 3.08 | 3.01 | 3.45 | 5.64 | |
| International Business Machines Corp. | — | 0.90 | 0.82 | 0.76 | 0.69 | 0.83 | |
| Intuit Inc. | 0.63 | 0.71 | 1.25 | 1.17 | 1.65 | 2.04 | |
| Microsoft Corp. | 1.16 | 1.06 | 1.54 | 1.57 | 1.90 | 2.33 | |
| Oracle Corp. | 0.61 | 0.59 | 0.74 | 1.43 | 2.15 | 2.83 | |
| Palantir Technologies Inc. | — | 5.83 | 5.41 | 4.92 | 4.11 | 3.59 | |
| Palo Alto Networks Inc. | 0.88 | 0.82 | 0.72 | 0.75 | 0.88 | 1.85 | |
| Salesforce Inc. | 0.93 | 0.96 | 0.90 | 0.93 | 1.11 | 0.95 | |
| ServiceNow Inc. | — | 1.02 | 1.00 | 1.06 | 1.01 | 1.16 | |
| Synopsys Inc. | 1.20 | 1.88 | 0.85 | 0.85 | 0.89 | 0.94 | |
| Workday Inc. | 1.80 | 1.87 | 1.66 | 0.96 | 1.07 | 0.95 | |
| Quick Ratio, Sector | |||||||
| Software & Services | — | 1.02 | 1.22 | 1.27 | 1.53 | — | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 0.96 | 1.12 | 1.09 | 1.30 | — | |
Based on: 10-K (reporting date: 2025-11-28), 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 8,939 ÷ 10,200 = 0.88
2 Click competitor name to see calculations.
The quick ratio exhibited fluctuating performance over the observed period. Initially, the ratio decreased before stabilizing and then declining again in more recent periods. A review of the underlying components, total quick assets and current liabilities, provides further insight into these movements.
- Overall Trend
- The quick ratio began at 1.34 in 2020, decreased to 1.11 in 2021, and reached a low of 1.00 in 2022. It then increased to 1.22 in 2023, but subsequently declined to 0.95 in 2024 and further to 0.88 in 2025. This indicates a weakening short-term liquidity position over the latter part of the period.
- Total Quick Assets
- Total quick assets generally increased from 7,390 in 2020 to 8,161 in 2022. A significant jump occurred between 2022 and 2023, reaching 10,066. However, these assets decreased slightly to 9,958 in 2024 and continued to decline to 8,939 in 2025. This suggests a recent trend of diminishing readily available liquid assets.
- Current Liabilities
- Current liabilities demonstrated a consistent upward trend from 5,512 in 2020 to 8,251 in 2023. The rate of increase accelerated between 2023 and 2024, reaching 10,521, and remained high at 10,200 in 2025. This indicates a growing obligation for short-term debt repayment.
- Ratio Dynamics
- The initial decrease in the quick ratio from 2020 to 2022 was driven by a faster growth rate in current liabilities compared to quick assets. The improvement in 2023 was attributable to a substantial increase in quick assets, outpacing the growth in current liabilities. The subsequent decline in the ratio from 2023 to 2025 is primarily due to the continued increase in current liabilities, coupled with a decrease in total quick assets.
The observed trend suggests a potential increase in liquidity risk, as the company’s ability to meet its short-term obligations with its most liquid assets is diminishing. Continued monitoring of these trends is recommended.
Cash Ratio
Adobe Inc., cash ratio calculation, comparison to benchmarks
| Nov 28, 2025 | Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 5,431) | 7,613) | 7,141) | 4,236) | 3,844) | 4,478) | |
| Short-term investments | 1,164) | 273) | 701) | 1,860) | 1,954) | 1,514) | |
| Total cash assets | 6,595) | 7,886) | 7,842) | 6,096) | 5,798) | 5,992) | |
| Current liabilities | 10,200) | 10,521) | 8,251) | 8,128) | 6,932) | 5,512) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.65 | 0.75 | 0.95 | 0.75 | 0.84 | 1.09 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | 0.56 | 0.26 | 0.50 | 0.45 | 0.52 | 0.67 | |
| AppLovin Corp. | — | 0.70 | 0.53 | 1.87 | 4.02 | — | |
| Cadence Design Systems Inc. | — | 2.03 | 0.72 | 0.66 | 1.13 | 1.17 | |
| CrowdStrike Holdings Inc. | 1.25 | 1.29 | 1.28 | 1.42 | 2.22 | 1.85 | |
| Datadog Inc. | — | 2.25 | 2.58 | 2.48 | 2.94 | 5.09 | |
| International Business Machines Corp. | — | 0.45 | 0.39 | 0.28 | 0.22 | 0.36 | |
| Intuit Inc. | 0.44 | 0.54 | 0.97 | 0.90 | 1.46 | 2.00 | |
| Microsoft Corp. | 0.67 | 0.60 | 1.07 | 1.10 | 1.47 | 1.89 | |
| Oracle Corp. | 0.34 | 0.34 | 0.44 | 1.12 | 1.93 | 2.50 | |
| Palantir Technologies Inc. | — | 5.25 | 4.93 | 4.48 | 3.83 | 3.33 | |
| Palo Alto Networks Inc. | 0.36 | 0.34 | 0.31 | 0.44 | 0.57 | 1.39 | |
| Salesforce Inc. | 0.50 | 0.53 | 0.48 | 0.48 | 0.67 | 0.54 | |
| ServiceNow Inc. | — | 0.69 | 0.66 | 0.71 | 0.67 | 0.83 | |
| Synopsys Inc. | 0.80 | 1.53 | 0.53 | 0.56 | 0.65 | 0.58 | |
| Workday Inc. | 1.45 | 1.55 | 1.32 | 0.72 | 0.83 | 0.65 | |
| Cash Ratio, Sector | |||||||
| Software & Services | — | 0.59 | 0.79 | 0.83 | 1.12 | — | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.57 | 0.71 | 0.67 | 0.89 | — | |
Based on: 10-K (reporting date: 2025-11-28), 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 6,595 ÷ 10,200 = 0.65
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuating behavior over the observed period. Initially, the ratio decreased from 2020 to 2022, followed by a partial recovery in 2023, and then resumed a downward trend through the projected figures for 2025.
- Overall Trend
- From November 2020 to November 2025, the cash ratio generally declined. While there was a temporary increase between 2022 and 2023, the overall trajectory indicates a weakening ability to cover current liabilities with only cash and cash equivalents.
- Initial Decline (2020-2022)
- The cash ratio decreased from 1.09 in 2020 to 0.75 in 2022. This decline coincided with an increase in current liabilities, which grew at a faster rate than total cash assets during this period. Total cash assets remained relatively stable, while current liabilities increased significantly.
- Temporary Recovery (2022-2023)
- A slight improvement was observed in 2023, with the cash ratio rising to 0.95. This was primarily driven by a substantial increase in total cash assets, from US$6,096 million to US$7,842 million, while current liabilities experienced a more modest increase.
- Resumed Decline (2023-2025)
- Following the 2023 recovery, the cash ratio resumed its downward trend, reaching 0.65 by the projected end of 2025. This is attributable to a combination of factors: a decrease in total cash assets and a continued increase in current liabilities. Current liabilities are projected to remain high, while cash assets are expected to decrease further.
- Magnitude of Change
- The largest single-year decrease in the cash ratio occurred between 2021 and 2022, falling from 0.84 to 0.75. The most significant projected decrease is between 2024 and 2025, with a drop from 0.75 to 0.65. These declines suggest periods of increased short-term financial pressure.
The observed trends suggest a potential increase in reliance on other current assets to meet short-term obligations, or a need to manage current liabilities more effectively.