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 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015
Turnover Ratios
Receivables turnover 9.20 7.28 6.86 5.99 7.03 7.14
Payables turnover 5.63 7.98 6.42 8.90 9.31 7.98
Working capital turnover 4.89 16.24 1.96 1.93 1.84
Average No. Days
Average receivable collection period 40 50 53 61 52 51
Average payables payment period 65 46 57 41 39 46

Based on: 10-K (filing date: 2021-01-15), 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).

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 2018 to 2019 and from 2019 to 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Adobe Inc.’s payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

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 2018 to 2019 and from 2019 to 2020.
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 decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Receivables Turnover

Adobe Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015
Selected Financial Data (US$ in millions)
Revenue 12,868  11,171  9,030  7,302  5,854  4,796 
Trade receivables, net of allowances for doubtful accounts 1,398  1,535  1,316  1,218  833  672 
Short-term Activity Ratio
Receivables turnover1 9.20 7.28 6.86 5.99 7.03 7.14
Benchmarks
Receivables Turnover, Competitors2
Alphabet Inc. 5.90 6.39 6.57 6.05 6.39
Autodesk Inc. 5.02 5.42 4.69 4.49 3.83 5.47
Facebook Inc. 7.58 7.43 7.36 6.97 6.92
International Business Machines Corp. 10.32 9.80 10.71 8.86 8.70
Intuit Inc. 51.54 77.98 60.86 50.26 43.46 46.07
Microsoft Corp. 4.47 4.26 4.17 4.54 4.67 5.23
Oracle Corp. 7.04 7.69 7.55 7.12 6.88 6.80
salesforce.com inc. 2.77 2.70 2.68 2.63 2.67 2.82
ServiceNow Inc. 4.48 4.14 4.54 4.44 4.31
Receivables Turnover, Sector
Software & Computer Services 6.01 6.12 6.03 6.16
Receivables Turnover, Industry
Technology 7.50 7.54 7.69 8.07

Based on: 10-K (filing date: 2021-01-15), 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).

1 2020 Calculation
Receivables turnover = Revenue ÷ Trade receivables, net of allowances for doubtful accounts
= 12,868 ÷ 1,398 = 9.20

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 2018 to 2019 and from 2019 to 2020.

Payables Turnover

Adobe Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015
Selected Financial Data (US$ in millions)
Cost of revenue 1,722  1,673  1,195  1,010  820  744 
Trade payables 306  209  186  114  88  93 
Short-term Activity Ratio
Payables turnover1 5.63 7.98 6.42 8.90 9.31 7.98
Benchmarks
Payables Turnover, Competitors2
Alphabet Inc. 15.16 12.93 13.60 14.53 17.22
Autodesk Inc. 3.88 2.81 3.20 3.66 3.09 3.40
Facebook Inc. 12.54 9.37 11.41 14.35 12.55
International Business Machines Corp. 7.75 8.30 6.50 6.65 6.70
Intuit Inc. 4.52 4.26 5.49 5.15 4.09 3.82
Microsoft Corp. 3.68 4.57 4.45 4.64 4.75 5.01
Oracle Corp. 12.46 13.78 15.28 12.47 14.84 9.34
salesforce.com inc.
ServiceNow Inc. 28.83 15.04 20.26 15.56 10.47
Payables Turnover, Sector
Software & Computer Services 8.19 7.66 7.66 7.62
Payables Turnover, Industry
Technology 5.54 4.82 4.80 5.41

Based on: 10-K (filing date: 2021-01-15), 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).

1 2020 Calculation
Payables turnover = Cost of revenue ÷ Trade payables
= 1,722 ÷ 306 = 5.63

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 increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015
Selected Financial Data (US$ in millions)
Current assets 8,146  6,495  4,857  7,248  5,840  4,822 
Less: Current liabilities 5,512  8,191  4,301  3,527  2,812  2,214 
Working capital 2,634  (1,696) 556  3,720  3,028  2,608 
 
Revenue 12,868  11,171  9,030  7,302  5,854  4,796 
Short-term Activity Ratio
Working capital turnover1 4.89 16.24 1.96 1.93 1.84
Benchmarks
Working Capital Turnover, Competitors2
Alphabet Inc. 1.55 1.51 1.35 1.11 1.02
Autodesk Inc. 7.38 1.79 1.98
Facebook Inc. 1.42 1.38 1.28 0.91 0.88
International Business Machines Corp. 107.30 7.29 6.40 10.50
Intuit Inc. 1.73 4.17 20.71 5.14
Microsoft Corp. 1.30 1.19 0.99 0.94 1.06 1.25
Oracle Corp. 1.12 1.42 0.70 0.75 0.79 0.80
salesforce.com inc. 15.29
ServiceNow Inc. 5.76 46.69 7.86 6.24 5.13
Working Capital Turnover, Sector
Software & Computer Services 1.76 1.40 1.25 1.32
Working Capital Turnover, Industry
Technology 2.42 2.24 1.73 1.87

Based on: 10-K (filing date: 2021-01-15), 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).

1 2020 Calculation
Working capital turnover = Revenue ÷ Working capital
= 12,868 ÷ 2,634 = 4.89

2 Click competitor name to see calculations.


Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015
Selected Financial Data
Receivables turnover 9.20 7.28 6.86 5.99 7.03 7.14
Short-term Activity Ratio (no. days)
Average receivable collection period1 40 50 53 61 52 51
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Alphabet Inc. 62 57 56 60 57
Autodesk Inc. 73 67 78 81 95 67
Facebook Inc. 48 49 50 52 53
International Business Machines Corp. 35 37 34 41 42
Intuit Inc. 7 5 6 7 8 8
Microsoft Corp. 82 86 88 80 78 70
Oracle Corp. 52 47 48 51 53 54
salesforce.com inc. 132 135 136 139 137 129
ServiceNow Inc. 82 88 80 82 85
Average Receivable Collection Period, Sector
Software & Computer Services 61 60 61 59
Average Receivable Collection Period, Industry
Technology 49 48 47 45

Based on: 10-K (filing date: 2021-01-15), 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).

1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.20 = 40

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 2018 to 2019 and from 2019 to 2020.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015
Selected Financial Data
Payables turnover 5.63 7.98 6.42 8.90 9.31 7.98
Short-term Activity Ratio (no. days)
Average payables payment period1 65 46 57 41 39 46
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Alphabet Inc. 24 28 27 25 21
Autodesk Inc. 94 130 114 100 118 107
Facebook Inc. 29 39 32 25 29
International Business Machines Corp. 47 44 56 55 54
Intuit Inc. 81 86 66 71 89 96
Microsoft Corp. 99 80 82 79 77 73
Oracle Corp. 29 26 24 29 25 39
salesforce.com inc.
ServiceNow Inc. 13 24 18 23 35
Average Payables Payment Period, Sector
Software & Computer Services 45 48 48 48
Average Payables Payment Period, Industry
Technology 66 76 76 67

Based on: 10-K (filing date: 2021-01-15), 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).

1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.63 = 65

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 decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.