Adobe Inc. (ADBE)
Analysis of Short-term (Operating) Activity Ratios
Beginner level
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Adobe Inc., short-term (operating) activity ratios
Based on: 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), 10-K (filing date: 2014-01-21).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Adobe Inc.’s receivables turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Adobe Inc.’s payables turnover ratio decreased from 2016 to 2017 and from 2017 to 2018. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Adobe Inc.’s working capital turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
| 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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
| 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 2016 to 2017 and from 2017 to 2018. |
Receivables Turnover
Adobe Inc., receivables turnover calculation, comparison to benchmarks
| Nov 30, 2018 | Dec 1, 2017 | Dec 2, 2016 | Nov 27, 2015 | Nov 28, 2014 | Nov 29, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Revenue | 9,030,008 | 7,301,505 | 5,854,430 | 4,795,511 | 4,147,065 | 4,055,240 | |
| Trade receivables, net of allowances for doubtful accounts | 1,315,578 | 1,217,968 | 833,033 | 672,006 | 591,800 | 599,820 | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 6.86 | 5.99 | 7.03 | 7.14 | 7.01 | 6.76 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Alphabet Inc. | 6.57 | 6.05 | 6.39 | 6.49 | 7.03 | — | |
| Facebook Inc. | 7.36 | 6.97 | 6.92 | 7.01 | 7.43 | — | |
| International Business Machines Corp. | 10.71 | 8.86 | 8.70 | 9.81 | 10.21 | — | |
| Intuit Inc. | 60.86 | 50.26 | 43.46 | 46.07 | 33.63 | — | |
| Microsoft Corp. | 4.17 | 4.54 | 4.67 | 5.23 | 4.44 | — | |
| Oracle Corp. | 7.55 | 7.12 | 6.88 | 6.80 | 6.29 | — | |
| salesforce.com inc. | 2.68 | 2.63 | 2.67 | 2.82 | 2.99 | — | |
| Receivables Turnover, Sector | |||||||
| Software & Computer Services | 6.14 | 6.05 | 6.20 | 6.60 | 6.46 | — | |
| Receivables Turnover, Industry | |||||||
| Technology | 7.62 | 7.75 | 8.14 | 8.73 | 7.96 | — | |
Based on: 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), 10-K (filing date: 2014-01-21).
1 2018 Calculation
Receivables turnover = Revenue ÷ Trade receivables, net of allowances for doubtful accounts
= 9,030,008 ÷ 1,315,578 = 6.86
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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
Payables Turnover
Adobe Inc., payables turnover calculation, comparison to benchmarks
| Nov 30, 2018 | Dec 1, 2017 | Dec 2, 2016 | Nov 27, 2015 | Nov 28, 2014 | Nov 29, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of revenue | 1,194,999 | 1,010,491 | 819,908 | 744,317 | 622,080 | 586,557 | |
| Trade payables | 186,258 | 113,538 | 88,024 | 93,307 | 68,377 | 62,096 | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 6.42 | 8.90 | 9.31 | 7.98 | 9.10 | 9.45 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Alphabet Inc. | 13.60 | 14.53 | 17.22 | 14.59 | 14.98 | — | |
| Facebook Inc. | 11.41 | 14.35 | 12.55 | 14.63 | 12.23 | — | |
| International Business Machines Corp. | 6.50 | 6.65 | 6.70 | 6.81 | 6.76 | — | |
| Intuit Inc. | 5.49 | 5.15 | 4.09 | 3.82 | 4.15 | — | |
| Microsoft Corp. | 4.45 | 4.64 | 4.75 | 5.01 | 3.64 | — | |
| Oracle Corp. | 15.28 | 12.47 | 14.84 | 9.34 | 15.36 | — | |
| salesforce.com inc. | 36.27 | 19.38 | 23.15 | 13.49 | 14.90 | — | |
| Payables Turnover, Sector | |||||||
| Software & Computer Services | 7.63 | 7.62 | 7.61 | 7.24 | 6.54 | — | |
| Payables Turnover, Industry | |||||||
| Technology | 4.75 | 4.73 | 5.36 | 5.67 | 5.34 | — | |
Based on: 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), 10-K (filing date: 2014-01-21).
1 2018 Calculation
Payables turnover = Cost of revenue ÷ Trade payables
= 1,194,999 ÷ 186,258 = 6.42
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 2016 to 2017 and from 2017 to 2018. |
Working Capital Turnover
Adobe Inc., working capital turnover calculation, comparison to benchmarks
| Nov 30, 2018 | Dec 1, 2017 | Dec 2, 2016 | Nov 27, 2015 | Nov 28, 2014 | Nov 29, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 4,857,039 | 7,247,813 | 5,839,774 | 4,821,892 | 4,602,328 | 4,045,929 | |
| Less: Current liabilities | 4,301,126 | 3,527,457 | 2,811,635 | 2,213,556 | 2,494,435 | 1,525,648 | |
| Working capital | 555,913 | 3,720,356 | 3,028,139 | 2,608,336 | 2,107,893 | 2,520,281 | |
| Revenue | 9,030,008 | 7,301,505 | 5,854,430 | 4,795,511 | 4,147,065 | 4,055,240 | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 16.24 | 1.96 | 1.93 | 1.84 | 1.97 | 1.61 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Alphabet Inc. | 1.35 | 1.11 | 1.02 | 1.06 | 1.03 | — | |
| Facebook Inc. | 1.28 | 0.91 | 0.88 | 0.91 | 1.02 | — | |
| International Business Machines Corp. | 7.29 | 6.40 | 10.50 | 9.93 | 9.45 | — | |
| Intuit Inc. | 20.71 | — | — | 5.14 | 3.76 | — | |
| Microsoft Corp. | 0.99 | 0.94 | 1.06 | 1.25 | 1.27 | — | |
| Oracle Corp. | 0.70 | 0.75 | 0.79 | 0.80 | 1.13 | — | |
| salesforce.com inc. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Software & Computer Services | 1.39 | 1.24 | 1.32 | 1.43 | 1.62 | — | |
| Working Capital Turnover, Industry | |||||||
| Technology | 2.22 | 1.71 | 1.89 | 2.11 | 2.28 | — | |
Based on: 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), 10-K (filing date: 2014-01-21).
1 2018 Calculation
Working capital turnover = Revenue ÷ Working capital
= 9,030,008 ÷ 555,913 = 16.24
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 2016 to 2017 and from 2017 to 2018. |
Average Receivable Collection Period
Adobe Inc., average receivable collection period calculation, comparison to benchmarks
| Nov 30, 2018 | Dec 1, 2017 | Dec 2, 2016 | Nov 27, 2015 | Nov 28, 2014 | Nov 29, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 6.86 | 5.99 | 7.03 | 7.14 | 7.01 | 6.76 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 53 | 61 | 52 | 51 | 52 | 54 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Alphabet Inc. | 56 | 60 | 57 | 56 | 52 | — | |
| Facebook Inc. | 50 | 52 | 53 | 52 | 49 | — | |
| International Business Machines Corp. | 34 | 41 | 42 | 37 | 36 | — | |
| Intuit Inc. | 6 | 7 | 8 | 8 | 11 | — | |
| Microsoft Corp. | 88 | 80 | 78 | 70 | 82 | — | |
| Oracle Corp. | 48 | 51 | 53 | 54 | 58 | — | |
| salesforce.com inc. | 136 | 139 | 137 | 129 | 122 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Software & Computer Services | 59 | 60 | 59 | 55 | 57 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Technology | 48 | 47 | 45 | 42 | 46 | — | |
Based on: 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), 10-K (filing date: 2014-01-21).
1 2018 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.86 = 53
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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
Average Payables Payment Period
Adobe Inc., average payables payment period calculation, comparison to benchmarks
| Nov 30, 2018 | Dec 1, 2017 | Dec 2, 2016 | Nov 27, 2015 | Nov 28, 2014 | Nov 29, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 6.42 | 8.90 | 9.31 | 7.98 | 9.10 | 9.45 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 57 | 41 | 39 | 46 | 40 | 39 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Alphabet Inc. | 27 | 25 | 21 | 25 | 24 | — | |
| Facebook Inc. | 32 | 25 | 29 | 25 | 30 | — | |
| International Business Machines Corp. | 56 | 55 | 54 | 54 | 54 | — | |
| Intuit Inc. | 66 | 71 | 89 | 96 | 88 | — | |
| Microsoft Corp. | 82 | 79 | 77 | 73 | 100 | — | |
| Oracle Corp. | 24 | 29 | 25 | 39 | 24 | — | |
| salesforce.com inc. | 10 | 19 | 16 | 27 | 24 | — | |
| Average Payables Payment Period, Sector | |||||||
| Software & Computer Services | 48 | 48 | 48 | 50 | 56 | — | |
| Average Payables Payment Period, Industry | |||||||
| Technology | 77 | 77 | 68 | 64 | 68 | — | |
Based on: 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), 10-K (filing date: 2014-01-21).
1 2018 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.42 = 57
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 2016 to 2017 and from 2017 to 2018. |