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 (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
| 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 | — | |
| Autodesk Inc. | 5.21 | 6.13 | 5.89 | 5.02 | 5.42 | — | |
| Cadence Design Systems Inc. | 8.36 | 7.32 | 8.85 | 7.93 | 7.67 | — | |
| CrowdStrike Holdings Inc. | 3.58 | 3.94 | 3.66 | 2.92 | — | — | |
| 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 | — | |
| Microsoft Corp. | 4.35 | 4.48 | 4.42 | 4.47 | 4.26 | — | |
| Oracle Corp. | 7.22 | 7.13 | 7.48 | 7.04 | 7.69 | — | |
| Palo Alto Networks Inc. | 2.80 | 2.57 | 3.43 | 3.29 | 4.98 | — | |
| 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 | 5.15 | 5.21 | 5.24 | 5.59 | 5.59 | — | |
| Receivables Turnover, Industry | |||||||
| Information Technology | 7.37 | 7.42 | 7.55 | 8.00 | 7.59 | — | |
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
| 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 | — | |
| Autodesk Inc. | 4.71 | 3.46 | 2.75 | 3.88 | 2.81 | — | |
| Cadence Design Systems Inc. | 4.77 | 7.89 | — | — | — | — | |
| CrowdStrike Holdings Inc. | 13.25 | 8.05 | 19.03 | 105.30 | — | — | |
| 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 | — | |
| Microsoft Corp. | 3.64 | 3.30 | 3.44 | 3.68 | 4.57 | — | |
| Oracle Corp. | 11.27 | 6.74 | 10.54 | 12.46 | 13.78 | — | |
| Palo Alto Networks Inc. | 14.43 | 13.43 | 22.41 | 15.72 | 11.03 | — | |
| 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 | 5.71 | 6.58 | 7.58 | — | |
| Payables Turnover, Industry | |||||||
| Information Technology | 4.87 | 4.54 | 4.99 | 5.35 | 5.27 | — | |
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
| 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 | — | |
| Autodesk Inc. | — | — | — | — | — | — | |
| Cadence Design Systems Inc. | 10.61 | 9.92 | 4.01 | 3.94 | 4.70 | — | |
| CrowdStrike Holdings Inc. | 1.46 | 1.25 | 0.61 | 0.71 | — | — | |
| International Business Machines Corp. | — | — | — | — | 107.30 | — | |
| Intuit Inc. | 8.13 | 8.98 | 3.85 | 1.73 | 4.17 | — | |
| Microsoft Corp. | 2.65 | 2.66 | 1.76 | 1.30 | 1.19 | — | |
| Oracle Corp. | — | 3.50 | 1.29 | 1.12 | 1.42 | — | |
| Palo Alto Networks Inc. | — | — | — | 1.40 | 1.80 | — | |
| 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 | 5.54 | 4.91 | 2.81 | 2.20 | 2.37 | — | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | 5.24 | 5.71 | 3.86 | 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
| 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 | — | |
| Autodesk Inc. | 70 | 60 | 62 | 73 | 67 | — | |
| Cadence Design Systems Inc. | 44 | 50 | 41 | 46 | 48 | — | |
| CrowdStrike Holdings Inc. | 102 | 93 | 100 | 125 | — | — | |
| International Business Machines Corp. | 43 | 39 | 43 | 35 | 37 | — | |
| Intuit Inc. | 10 | 13 | 15 | 7 | 5 | — | |
| Microsoft Corp. | 84 | 81 | 83 | 82 | 86 | — | |
| Oracle Corp. | 51 | 51 | 49 | 52 | 47 | — | |
| Palo Alto Networks Inc. | 130 | 142 | 106 | 111 | 73 | — | |
| 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 | 50 | 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
| 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 | — | |
| Autodesk Inc. | 78 | 105 | 133 | 94 | 130 | — | |
| Cadence Design Systems Inc. | 77 | 46 | — | — | — | — | |
| CrowdStrike Holdings Inc. | 28 | 45 | 19 | 3 | — | — | |
| International Business Machines Corp. | 55 | 53 | 56 | 47 | 44 | — | |
| Intuit Inc. | 74 | 112 | 135 | 81 | 86 | — | |
| Microsoft Corp. | 100 | 111 | 106 | 99 | 80 | — | |
| Oracle Corp. | 32 | 54 | 35 | 29 | 26 | — | |
| Palo Alto Networks Inc. | 25 | 27 | 16 | 23 | 33 | — | |
| 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 | 55 | 48 | — | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | 75 | 80 | 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. |