Stock Analysis on Net
Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Adobe Inc., adjusted financial ratios

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
Activity Ratio
Total Asset Turnover
Reported 0.71 0.65 0.65 0.58 0.53 0.54
Adjusted 0.76 0.70 0.69 0.65 0.57 0.54
Liquidity Ratio
Current Ratio
Reported 1.07 1.34 1.11 1.25 1.48 0.79
Adjusted 2.56 4.60 3.19 3.95 4.34 1.35
Solvency Ratios
Debt to Equity
Reported 0.40 0.22 0.29 0.28 0.31 0.39
Adjusted 0.32 0.19 0.25 0.25 0.30 0.33
Debt to Capital
Reported 0.29 0.18 0.23 0.22 0.24 0.28
Adjusted 0.24 0.16 0.20 0.20 0.23 0.25
Financial Leverage
Reported 2.14 1.80 1.93 1.84 1.83 1.97
Adjusted 1.52 1.34 1.41 1.41 1.46 1.51
Profitability Ratios
Net Profit Margin
Reported 25.85% 27.97% 27.01% 30.55% 40.88% 26.42%
Adjusted 25.14% 27.79% 30.15% 36.38% 30.89% 28.90%
Return on Equity (ROE)
Reported 39.42% 32.86% 33.85% 32.59% 39.66% 28.03%
Adjusted 29.24% 26.01% 29.19% 33.04% 25.85% 23.68%
Return on Assets (ROA)
Reported 18.39% 18.23% 17.51% 17.70% 21.66% 14.22%
Adjusted 19.18% 19.38% 20.71% 23.49% 17.68% 15.71%

Based on: 10-K (reporting date: 2024-11-29), 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Adobe Inc. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Adobe Inc. adjusted current ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Adobe Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Adobe Inc. adjusted debt-to-capital ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Adobe Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Adobe Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total 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 adjusted total assets. Adobe Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Adobe Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
Reported
Selected Financial Data (US$ in millions)
Revenue 21,505 19,409 17,606 15,785 12,868 11,171
Total assets 30,230 29,779 27,165 27,241 24,284 20,762
Activity Ratio
Total asset turnover1 0.71 0.65 0.65 0.58 0.53 0.54
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenue2 21,814 19,945 18,142 16,904 13,126 11,618
Adjusted total assets3 28,587 28,604 26,411 26,172 22,935 21,369
Activity Ratio
Adjusted total asset turnover4 0.76 0.70 0.69 0.65 0.57 0.54

Based on: 10-K (reporting date: 2024-11-29), 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).

1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= 21,505 ÷ 30,230 = 0.71

2 Adjusted revenue. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted total asset turnover = Adjusted revenue ÷ Adjusted total assets
= 21,814 ÷ 28,587 = 0.76

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Adobe Inc. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Current Ratio

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 11,232 11,084 8,996 8,669 8,146 6,495
Current liabilities 10,521 8,251 8,128 6,932 5,512 8,191
Liquidity Ratio
Current ratio1 1.07 1.34 1.11 1.25 1.48 0.79
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 11,246 11,100 9,019 8,685 8,167 6,505
Adjusted current liabilities3 4,390 2,414 2,831 2,199 1,883 4,813
Liquidity Ratio
Adjusted current ratio4 2.56 4.60 3.19 3.95 4.34 1.35

Based on: 10-K (reporting date: 2024-11-29), 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).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,232 ÷ 10,521 = 1.07

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2024 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 11,246 ÷ 4,390 = 2.56

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Adobe Inc. adjusted current ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 5,628 3,634 4,129 4,123 4,117 4,138
Stockholders’ equity 14,105 16,518 14,051 14,797 13,264 10,530
Solvency Ratio
Debt to equity1 0.40 0.22 0.29 0.28 0.31 0.39
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 6,056 4,080 4,633 4,673 4,708 4,736
Adjusted stockholders’ equity3 18,752 21,308 18,739 18,611 15,684 14,181
Solvency Ratio
Adjusted debt to equity4 0.32 0.19 0.25 0.25 0.30 0.33

Based on: 10-K (reporting date: 2024-11-29), 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).

1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 5,628 ÷ 14,105 = 0.40

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 6,056 ÷ 18,752 = 0.32

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Adobe Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Debt to Capital

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 5,628 3,634 4,129 4,123 4,117 4,138
Total capital 19,733 20,152 18,180 18,920 17,381 14,668
Solvency Ratio
Debt to capital1 0.29 0.18 0.23 0.22 0.24 0.28
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 6,056 4,080 4,633 4,673 4,708 4,736
Adjusted total capital3 24,808 25,388 23,372 23,284 20,392 18,917
Solvency Ratio
Adjusted debt to capital4 0.24 0.16 0.20 0.20 0.23 0.25

Based on: 10-K (reporting date: 2024-11-29), 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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,628 ÷ 19,733 = 0.29

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 6,056 ÷ 24,808 = 0.24

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Adobe Inc. adjusted debt-to-capital ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 30,230 29,779 27,165 27,241 24,284 20,762
Stockholders’ equity 14,105 16,518 14,051 14,797 13,264 10,530
Solvency Ratio
Financial leverage1 2.14 1.80 1.93 1.84 1.83 1.97
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 28,587 28,604 26,411 26,172 22,935 21,369
Adjusted stockholders’ equity3 18,752 21,308 18,739 18,611 15,684 14,181
Solvency Ratio
Adjusted financial leverage4 1.52 1.34 1.41 1.41 1.46 1.51

Based on: 10-K (reporting date: 2024-11-29), 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).

1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 30,230 ÷ 14,105 = 2.14

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 28,587 ÷ 18,752 = 1.52

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Adobe Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Adjusted Net Profit Margin

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net income2 5,483 5,543 5,469 6,149 4,055 3,358
Adjusted revenue3 21,814 19,945 18,142 16,904 13,126 11,618
Profitability Ratio
Adjusted net profit margin4 25.14% 27.79% 30.15% 36.38% 30.89% 28.90%

Based on: 10-K (reporting date: 2024-11-29), 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).

1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 5,560 ÷ 21,505 = 25.85%

2 Adjusted net income. See details »

3 Adjusted revenue. See details »

4 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenue
= 100 × 5,483 ÷ 21,814 = 25.14%

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

Adjusted Return on Equity (ROE)

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net income2 5,483 5,543 5,469 6,149 4,055 3,358
Adjusted stockholders’ equity3 18,752 21,308 18,739 18,611 15,684 14,181
Profitability Ratio
Adjusted ROE4 29.24% 26.01% 29.19% 33.04% 25.85% 23.68%

Based on: 10-K (reporting date: 2024-11-29), 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).

1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 5,560 ÷ 14,105 = 39.42%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 5,483 ÷ 18,752 = 29.24%

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

Adjusted Return on Assets (ROA)

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net income2 5,483 5,543 5,469 6,149 4,055 3,358
Adjusted total assets3 28,587 28,604 26,411 26,172 22,935 21,369
Profitability Ratio
Adjusted ROA4 19.18% 19.38% 20.71% 23.49% 17.68% 15.71%

Based on: 10-K (reporting date: 2024-11-29), 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).

1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 5,560 ÷ 30,230 = 18.39%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 5,483 ÷ 28,587 = 19.18%

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