Microsoft Excel LibreOffice Calc

Adobe Inc. (ADBE)

Short-term (Operating) Activity Analysis

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014 Nov 29, 2013
Turnover Ratios
Receivables turnover 6.86 5.99 7.03 7.14 7.01 6.76
Payables turnover 6.42 8.90 9.31 7.98 9.10 9.45
Working capital turnover 16.24 1.96 1.93 1.84 1.97 1.61
Average No. of Days
Add: Average receivable collection period 53 61 52 51 52 54
Less: Average payables payment period 57 41 39 46 40 39

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).

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Adobe Inc.’s receivables turnover 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 declined 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 improved from 2016 to 2017 and from 2017 to 2018.
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 average receivable collection period 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 average payables payment period increased from 2016 to 2017 and from 2017 to 2018.

Receivables Turnover

Adobe Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014 Nov 29, 2013
Selected Financial Data (USD $ 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 
Ratio
Receivables turnover1 6.86 5.99 7.03 7.14 7.01 6.76
Benchmarks
Receivables Turnover, Competitors
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 4.45
Oracle Corp. 7.55 7.12 6.88 6.80 6.29 6.15
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 7.84 7.98 8.32 8.62 8.02 –

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).

2018 Calculations

1 Receivables turnover = Revenue ÷ Trade receivables, net of allowances for doubtful accounts
= 9,030,008 ÷ 1,315,578 = 6.86

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Adobe Inc.’s receivables turnover 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

Microsoft Excel LibreOffice Calc
Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014 Nov 29, 2013
Selected Financial Data (USD $ 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 
Ratio
Payables turnover1 6.42 8.90 9.31 7.98 9.10 9.45
Benchmarks
Payables Turnover, Competitors
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 4.19
Oracle Corp. 15.28 12.47 14.84 9.34 15.36 17.61
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 4.48 4.44 5.04 5.44 5.27 –

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).

2018 Calculations

1 Payables turnover = Cost of revenue ÷ Trade payables
= 1,194,999 ÷ 186,258 = 6.42

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Adobe Inc.’s payables turnover declined from 2016 to 2017 and from 2017 to 2018.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014 Nov 29, 2013
Selected Financial Data (USD $ 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 
Ratio
Working capital turnover1 16.24 1.96 1.93 1.84 1.97 1.61
Benchmarks
Working Capital Turnover, Competitors
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 1.22
Oracle Corp. 0.70 0.75 0.79 0.80 1.13 1.29
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 2.36 1.81 2.01 2.33 2.60 –

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).

2018 Calculations

1 Working capital turnover = Revenue ÷ Working capital
= 9,030,008 ÷ 555,913 = 16.24

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Adobe Inc.’s working capital turnover improved from 2016 to 2017 and from 2017 to 2018.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
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
Ratio (no. of days)
Average receivable collection period1 53 61 52 51 52 54
Benchmarks (no. of days)
Average Receivable Collection Period, Competitors
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 82
Oracle Corp. 48 51 53 54 58 59
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 47 46 44 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).

2018 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.86 = 53

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 average receivable collection period 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

Microsoft Excel LibreOffice Calc
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
Ratio (no. of days)
Average payables payment period1 57 41 39 46 40 39
Benchmarks (no. of days)
Average Payables Payment Period, Competitors
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 87
Oracle Corp. 24 29 25 39 24 21
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 81 82 72 67 69 –

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).

2018 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.42 = 57

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 average payables payment period increased from 2016 to 2017 and from 2017 to 2018.