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Adobe Systems Inc (NAS:ADBE)
Total Inventories
$0 Mil (As of Nov. 2014)

Adobe Systems Inc's total inventories for the quarter that ended in Nov. 2014 was $0 Mil. Adobe Systems Inc's average total inventories from the quarter that ended in Aug. 2014 to the quarter that ended in Nov. 2014 was $0 Mil.

In Ben Graham’s calculation of liquidation value, inventory is only considered worth half of its book value. Adobe Systems Inc's liquidation value for the quarter that ended in Nov. 2014 was $158 Mil.

Inventory can be measured by days sales of inventory (DSI). Adobe Systems Inc's days sales of inventory (DSI) for the three months ended in Nov. 2014 was 0.00.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Adobe Systems Inc's days inventory for the three months ended in Nov. 2014 was 0.00.

Inventory turnover measures how fast the company turns over its inventory within a year.

Inventory to revenue ratio determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Adobe Systems Inc's inventory to revenue ratio for the quarter that ended in Nov. 2014 was 0.00.


Definition

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company’s current assets.


Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers’ required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham’s calculation of liquidation value, inventory is only considered worth half of its book value.

Adobe Systems Inc's liquidation value for the quarter that ended in Nov. 2014 is

Liquidation value (Q: Nov. 2014 )
=Cash and Cash Equivalents-Total Liabilities+(0.75 * Account Receivable)+(0.5 * Inventory)
=3739.491-4025.255+0.75 * 591.8+0.5 * 0
=158

2. Inventory can be measured by Days Sales of Inventory (DSI).

Adobe Systems Inc's Days Sales of Inventory for the three months ended in Nov. 2014 is

Days Sales of Inventory (DSI)
=Average Inventory (Q: Nov. 2014 )/Revenue (Q: Nov. 2014 )*Days in Period
=0/1073.328*365 / 4
=0.00

3. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Adobe Systems Inc's Days Inventory for the three months ended in Nov. 2014 is calculated as:

Days Inventory=Average Inventory (Q: Nov. 2014 )/Cost of Goods Sold (Q: Nov. 2014 )*Days in Period
=0/160.943*365 / 4
=0.00

4. Inventory Turnover measures how fast the company turns over its inventory within a year.

Adobe Systems Inc's Inventory Turnover for the quarter that ended in Nov. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Nov. 2014 ) / Average Inventory (Q: Nov. 2014 )
=160.943 / 0
=N/A

5. Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Adobe Systems Inc's Inventory to Revenue for the quarter that ended in Nov. 2014 is calculated as

Inventory to Revenue=Average Inventory (Q: Nov. 2014 ) / Revenue (Q: Nov. 2014 )
=0 / 1073.328
=0.00

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.


Related Terms

Revenue, Cash and Cash Equivalents, Total Liabilities, Account Receivable, Inventory, NCAV, Days Inventory, Cost of Goods Sold, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Adobe Systems Inc Annual Data

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14
Inventory 0000000000

Adobe Systems Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
Inventory 0000000000
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