Adobe Inc., adjustment to net income

US$ in millions

12 months ended:	Nov 29, 2024	Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020	Nov 29, 2019
Net income (as reported)	5,560)	5,428)	4,756)	4,822)	5,260)	2,951)
Add: Unrealized gains (losses) on available-for-sale securities	11)	24)	(39)	(8)	3)	29)
Less: Reclassification adjustment for recognized (gains) losses on available-for-sale securities	—)	5)	—)	—)	(1)	—)
Net income (adjusted)	5,571)	5,457)	4,717)	4,814)	5,262)	2,981)

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Adobe Inc., adjusted profitability ratios

	Nov 29, 2024	Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020	Nov 29, 2019
Net Profit Margin
Reported net profit margin	25.85%	27.97%	27.01%	30.55%	40.88%	26.42%
Adjusted net profit margin	25.91%	28.12%	26.79%	30.50%	40.89%	26.68%
Return on Equity (ROE)
Reported ROE	39.42%	32.86%	33.85%	32.59%	39.66%	28.03%
Adjusted ROE	39.50%	33.04%	33.57%	32.53%	39.67%	28.31%
Return on Assets (ROA)
Reported ROA	18.39%	18.23%	17.51%	17.70%	21.66%	14.22%
Adjusted ROA	18.43%	18.32%	17.36%	17.67%	21.67%	14.36%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Adobe Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Adobe Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Adobe Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

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	Nov 29, 2024	Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020	Nov 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	5,560)	5,428)	4,756)	4,822)	5,260)	2,951)
Revenue	21,505)	19,409)	17,606)	15,785)	12,868)	11,171)
Profitability Ratio
Net profit margin¹	25.85%	27.97%	27.01%	30.55%	40.88%	26.42%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	5,571)	5,457)	4,717)	4,814)	5,262)	2,981)
Revenue	21,505)	19,409)	17,606)	15,785)	12,868)	11,171)
Profitability Ratio
Adjusted net profit margin²	25.91%	28.12%	26.79%	30.50%	40.89%	26.68%

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 5,560 ÷ 21,505 = 25.85%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 5,571 ÷ 21,505 = 25.91%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Adobe Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Nov 29, 2024	Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020	Nov 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	5,560)	5,428)	4,756)	4,822)	5,260)	2,951)
Stockholders’ equity	14,105)	16,518)	14,051)	14,797)	13,264)	10,530)
Profitability Ratio
ROE¹	39.42%	32.86%	33.85%	32.59%	39.66%	28.03%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	5,571)	5,457)	4,717)	4,814)	5,262)	2,981)
Stockholders’ equity	14,105)	16,518)	14,051)	14,797)	13,264)	10,530)
Profitability Ratio
Adjusted ROE²	39.50%	33.04%	33.57%	32.53%	39.67%	28.31%

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 5,560 ÷ 14,105 = 39.42%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 5,571 ÷ 14,105 = 39.50%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Adobe Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Nov 29, 2024	Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020	Nov 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	5,560)	5,428)	4,756)	4,822)	5,260)	2,951)
Total assets	30,230)	29,779)	27,165)	27,241)	24,284)	20,762)
Profitability Ratio
ROA¹	18.39%	18.23%	17.51%	17.70%	21.66%	14.22%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	5,571)	5,457)	4,717)	4,814)	5,262)	2,981)
Total assets	30,230)	29,779)	27,165)	27,241)	24,284)	20,762)
Profitability Ratio
Adjusted ROA²	18.43%	18.32%	17.36%	17.67%	21.67%	14.36%

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 5,560 ÷ 30,230 = 18.39%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 5,571 ÷ 30,230 = 18.43%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Adobe Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Adobe Inc. (NASDAQ:ADBE)

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