Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Adobe Inc. (NASDAQ:ADBE)

Analysis of Short-term (Operating) Activity Ratios

Beginner level


Short-term Activity Ratios (Summary)

Adobe Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
Turnover Ratios
Receivables turnover 7.28 6.86 5.99 7.03 7.14 7.01
Payables turnover 7.98 6.42 8.90 9.31 7.98 9.10
Working capital turnover 16.24 1.96 1.93 1.84 1.97
Average No. Days
Average receivable collection period 50 53 61 52 51 52
Average payables payment period 46 57 41 39 46 40

Based on: 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20).

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Adobe Inc.’s receivables turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Adobe Inc.’s payables turnover ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Adobe Inc.’s working capital turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Adobe Inc.’s number of days of receivables outstanding improved from 2017 to 2018 and from 2018 to 2019.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Adobe Inc.’s number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Receivables Turnover

Adobe Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
Selected Financial Data (US$ in thousands)
Revenue 11,171,297  9,030,008  7,301,505  5,854,430  4,795,511  4,147,065 
Trade receivables, net of allowances for doubtful accounts 1,534,809  1,315,578  1,217,968  833,033  672,006  591,800 
Short-term Activity Ratio
Receivables turnover1 7.28 6.86 5.99 7.03 7.14 7.01
Benchmarks
Receivables Turnover, Competitors2
Alphabet Inc. 6.39 6.57 6.05 6.39 6.49
Autodesk Inc. 5.42 4.69 4.49 3.83 5.47
Facebook Inc. 7.43 7.36 6.97 6.92 7.01
International Business Machines Corp. 9.80 10.71 8.86 8.70 9.81
Intuit Inc. 77.98 60.86 50.26 43.46 46.07
Microsoft Corp. 4.26 4.17 4.54 4.67 5.23
Oracle Corp. 7.69 7.55 7.12 6.88 6.80
salesforce.com inc. 2.70 2.68 2.63 2.67 2.82
ServiceNow Inc. 4.14 4.54 4.44 4.31 4.94
Receivables Turnover, Sector
Software & Computer Services 6.01 6.12 6.03 6.16 6.58
Receivables Turnover, Industry
Technology 7.50 7.54 7.69 8.07 8.64

Based on: 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20).

1 2019 Calculation
Receivables turnover = Revenue ÷ Trade receivables, net of allowances for doubtful accounts
= 11,171,297 ÷ 1,534,809 = 7.28

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Adobe Inc.’s receivables turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Payables Turnover

Adobe Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
Selected Financial Data (US$ in thousands)
Cost of revenue 1,672,720  1,194,999  1,010,491  819,908  744,317  622,080 
Trade payables 209,499  186,258  113,538  88,024  93,307  68,377 
Short-term Activity Ratio
Payables turnover1 7.98 6.42 8.90 9.31 7.98 9.10
Benchmarks
Payables Turnover, Competitors2
Alphabet Inc. 12.93 13.60 14.53 17.22 14.59
Autodesk Inc. 2.81 3.20 3.66 3.09 3.40
Facebook Inc. 9.37 11.41 14.35 12.55 14.63
International Business Machines Corp. 8.30 6.50 6.65 6.70 6.81
Intuit Inc. 4.26 5.49 5.15 4.09 3.82
Microsoft Corp. 4.57 4.45 4.64 4.75 5.01
Oracle Corp. 13.78 15.28 12.47 14.84 9.34
salesforce.com inc.
ServiceNow Inc. 15.04 20.26 15.56 10.47 8.82
Payables Turnover, Sector
Software & Computer Services 8.19 7.66 7.66 7.62 7.27
Payables Turnover, Industry
Technology 5.54 4.82 4.80 5.41 5.72

Based on: 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20).

1 2019 Calculation
Payables turnover = Cost of revenue ÷ Trade payables
= 1,672,720 ÷ 209,499 = 7.98

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Adobe Inc.’s payables turnover ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Working Capital Turnover

Adobe Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
Selected Financial Data (US$ in thousands)
Current assets 6,494,925  4,857,039  7,247,813  5,839,774  4,821,892  4,602,328 
Less: Current liabilities 8,190,938  4,301,126  3,527,457  2,811,635  2,213,556  2,494,435 
Working capital (1,696,013) 555,913  3,720,356  3,028,139  2,608,336  2,107,893 
 
Revenue 11,171,297  9,030,008  7,301,505  5,854,430  4,795,511  4,147,065 
Short-term Activity Ratio
Working capital turnover1 16.24 1.96 1.93 1.84 1.97
Benchmarks
Working Capital Turnover, Competitors2
Alphabet Inc. 1.51 1.35 1.11 1.02 1.06
Autodesk Inc. 7.38 1.79 1.98
Facebook Inc. 1.38 1.28 0.91 0.88 0.91
International Business Machines Corp. 107.30 7.29 6.40 10.50 9.93
Intuit Inc. 4.17 20.71 5.14
Microsoft Corp. 1.19 0.99 0.94 1.06 1.25
Oracle Corp. 1.42 0.70 0.75 0.79 0.80
salesforce.com inc.
ServiceNow Inc. 46.69 7.86 6.24 5.13 2.84
Working Capital Turnover, Sector
Software & Computer Services 1.76 1.40 1.25 1.32 1.44
Working Capital Turnover, Industry
Technology 2.42 2.24 1.73 1.87 2.10

Based on: 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20).

1 2019 Calculation
Working capital turnover = Revenue ÷ Working capital
= 11,171,297 ÷ -1,696,013 =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Adobe Inc.’s working capital turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Average Receivable Collection Period

Adobe Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
Selected Financial Data
Receivables turnover 7.28 6.86 5.99 7.03 7.14 7.01
Short-term Activity Ratio (no. days)
Average receivable collection period1 50 53 61 52 51 52
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Alphabet Inc. 57 56 60 57 56
Autodesk Inc. 67 78 81 95 67
Facebook Inc. 49 50 52 53 52
International Business Machines Corp. 37 34 41 42 37
Intuit Inc. 5 6 7 8 8
Microsoft Corp. 86 88 80 78 70
Oracle Corp. 47 48 51 53 54
salesforce.com inc. 135 136 139 137 129
ServiceNow Inc. 88 80 82 85 74
Average Receivable Collection Period, Sector
Software & Computer Services 61 60 61 59 55
Average Receivable Collection Period, Industry
Technology 49 48 47 45 42

Based on: 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.28 = 50

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Adobe Inc.’s number of days of receivables outstanding improved from 2017 to 2018 and from 2018 to 2019.

Average Payables Payment Period

Adobe Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
Selected Financial Data
Payables turnover 7.98 6.42 8.90 9.31 7.98 9.10
Short-term Activity Ratio (no. days)
Average payables payment period1 46 57 41 39 46 40
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Alphabet Inc. 28 27 25 21 25
Autodesk Inc. 130 114 100 118 107
Facebook Inc. 39 32 25 29 25
International Business Machines Corp. 44 56 55 54 54
Intuit Inc. 86 66 71 89 96
Microsoft Corp. 80 82 79 77 73
Oracle Corp. 26 24 29 25 39
salesforce.com inc.
ServiceNow Inc. 24 18 23 35 41
Average Payables Payment Period, Sector
Software & Computer Services 45 48 48 48 50
Average Payables Payment Period, Industry
Technology 66 76 76 67 64

Based on: 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.98 = 46

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Adobe Inc.’s number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.