Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

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

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Turnover Ratios
Receivables turnover 8.73 8.53 8.41 9.20 7.28 6.86
Payables turnover 7.50 5.71 5.98 5.63 7.98 6.42
Working capital turnover 6.85 20.28 9.09 4.89 16.24
Average No. Days
Average receivable collection period 42 43 43 40 50 53
Average payables payment period 49 64 61 65 46 57

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Adobe Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Adobe Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Adobe Inc. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

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.
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. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Receivables Turnover

Adobe Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Selected Financial Data (US$ in millions)
Revenue 19,409 17,606 15,785 12,868 11,171 9,030
Trade receivables, net of allowances for doubtful accounts 2,224 2,065 1,878 1,398 1,535 1,316
Short-term Activity Ratio
Receivables turnover1 8.73 8.53 8.41 9.20 7.28 6.86
Benchmarks
Receivables Turnover, Competitors2
Accenture PLC 6.00 5.87 5.74 6.16 5.79 8.33
International Business Machines Corp. 8.57 9.25 8.49 10.32 9.80
Intuit Inc. 35.48 28.53 24.64 51.54 77.98 60.86
Microsoft Corp. 4.35 4.48 4.42 4.47 4.26 4.17
Oracle Corp. 7.22 7.13 7.48 7.04 7.69 7.55
Palo Alto Networks Inc. 2.80 2.57 3.43 3.29 4.98 4.86
Salesforce Inc. 2.92 2.72 2.73 2.77 2.70
ServiceNow Inc. 4.41 4.20 4.24 4.48 4.14
Synopsys Inc. 6.17 6.38 7.40 4.72 6.07 5.63
Receivables Turnover, Sector
Software & Services 5.14 5.20 5.22 5.59 5.58
Receivables Turnover, Industry
Information Technology 7.41 7.44 7.57 8.02 7.60

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).

1 2023 Calculation
Receivables turnover = Revenue ÷ Trade receivables, net of allowances for doubtful accounts
= 19,409 ÷ 2,224 = 8.73

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. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Payables Turnover

Adobe Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Selected Financial Data (US$ in millions)
Cost of revenue 2,354 2,165 1,865 1,722 1,673 1,195
Trade payables 314 379 312 306 209 186
Short-term Activity Ratio
Payables turnover1 7.50 5.71 5.98 5.63 7.98 6.42
Benchmarks
Payables Turnover, Competitors2
Accenture PLC 17.41 16.37 15.03 22.48 18.16 21.62
International Business Machines Corp. 6.67 6.87 6.54 7.75 8.30
Intuit Inc. 4.93 3.26 2.70 4.52 4.26 5.49
Microsoft Corp. 3.64 3.30 3.44 3.68 4.57 4.45
Oracle Corp. 11.27 6.74 10.54 12.46 13.78 15.28
Palo Alto Networks Inc. 14.43 13.43 22.41 15.72 11.03 13.06
Salesforce Inc.
ServiceNow Inc. 15.25 5.74 15.20 28.83 15.04
Synopsys Inc. 7.84 28.30 31.44 26.49 38.00 8.65
Payables Turnover, Sector
Software & Services 6.20 5.52 5.70 6.57 7.59
Payables Turnover, Industry
Information Technology 4.86 4.53 4.99 5.34 5.26

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).

1 2023 Calculation
Payables turnover = Cost of revenue ÷ Trade payables
= 2,354 ÷ 314 = 7.50

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. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Working Capital Turnover

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

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Selected Financial Data (US$ in millions)
Current assets 11,084 8,996 8,669 8,146 6,495 4,857
Less: Current liabilities 8,251 8,128 6,932 5,512 8,191 4,301
Working capital 2,833 868 1,737 2,634 (1,696) 556
 
Revenue 19,409 17,606 15,785 12,868 11,171 9,030
Short-term Activity Ratio
Working capital turnover1 6.85 20.28 9.09 4.89 16.24
Benchmarks
Working Capital Turnover, Competitors2
Accenture PLC 11.93 15.07 12.77 8.71 9.85 12.12
International Business Machines Corp. 107.30
Intuit Inc. 8.13 8.98 3.85 1.73 4.17 20.71
Microsoft Corp. 2.65 2.66 1.76 1.30 1.19 0.99
Oracle Corp. 3.50 1.29 1.12 1.42 0.70
Palo Alto Networks Inc. 1.40 1.80 1.14
Salesforce Inc. 62.21 24.95 5.11 15.29
ServiceNow Inc. 21.77 11.16 21.76 5.76 46.69
Synopsys Inc. 13.12 21.34 10.65 9.00
Working Capital Turnover, Sector
Software & Services 5.49 4.82 2.78 2.17 2.33
Working Capital Turnover, Industry
Information Technology 5.23 5.68 3.87 2.86 3.06

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).

1 2023 Calculation
Working capital turnover = Revenue ÷ Working capital
= 19,409 ÷ 2,833 = 6.85

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. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Average Receivable Collection Period

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

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Selected Financial Data
Receivables turnover 8.73 8.53 8.41 9.20 7.28 6.86
Short-term Activity Ratio (no. days)
Average receivable collection period1 42 43 43 40 50 53
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Accenture PLC 61 62 64 59 63 44
International Business Machines Corp. 43 39 43 35 37
Intuit Inc. 10 13 15 7 5 6
Microsoft Corp. 84 81 83 82 86 88
Oracle Corp. 51 51 49 52 47 48
Palo Alto Networks Inc. 130 142 106 111 73 75
Salesforce Inc. 125 134 134 132 135
ServiceNow Inc. 83 87 86 82 88
Synopsys Inc. 59 57 49 77 60 65
Average Receivable Collection Period, Sector
Software & Services 71 70 70 65 65
Average Receivable Collection Period, Industry
Information Technology 49 49 48 46 48

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.73 = 42

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.

Average Payables Payment Period

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

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Selected Financial Data
Payables turnover 7.50 5.71 5.98 5.63 7.98 6.42
Short-term Activity Ratio (no. days)
Average payables payment period1 49 64 61 65 46 57
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Accenture PLC 21 22 24 16 20 17
International Business Machines Corp. 55 53 56 47 44
Intuit Inc. 74 112 135 81 86 66
Microsoft Corp. 100 111 106 99 80 82
Oracle Corp. 32 54 35 29 26 24
Palo Alto Networks Inc. 25 27 16 23 33 28
Salesforce Inc.
ServiceNow Inc. 24 64 24 13 24
Synopsys Inc. 47 13 12 14 10 42
Average Payables Payment Period, Sector
Software & Services 59 66 64 56 48
Average Payables Payment Period, Industry
Information Technology 75 81 73 68 69

Based on: 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.50 = 49

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. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.