Analysis of Short-term (Operating) Activity Ratios
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: 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
| 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
| 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
| 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
| 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
| 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. |