Stock Analysis on Net
Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Adobe Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Nov 29, 2024 39.42% = 18.39% × 2.14
Aug 30, 2024 36.85% = 17.97% × 2.05
May 31, 2024 34.22% = 16.93% × 2.02
Mar 1, 2024 31.05% = 16.70% × 1.86
Dec 1, 2023 32.86% = 18.23% × 1.80
Sep 1, 2023 32.46% = 17.60% × 1.84
Jun 2, 2023 32.71% = 17.44% × 1.88
Mar 3, 2023 33.35% = 17.76% × 1.88
Dec 2, 2022 33.85% = 17.51% × 1.93
Sep 2, 2022 33.49% = 18.00% × 1.86
Jun 3, 2022 34.96% = 18.57% × 1.88
Mar 4, 2022 35.04% = 18.58% × 1.89
Dec 3, 2021 32.59% = 17.70% × 1.84
Sep 3, 2021 40.51% = 22.33% × 1.81
Jun 4, 2021 40.30% = 21.82% × 1.85
Mar 5, 2021 41.09% = 22.28% × 1.84
Nov 27, 2020 39.66% = 21.66% × 1.83
Aug 28, 2020 32.97% = 17.23% × 1.91
May 29, 2020 34.00% = 17.13% × 1.99
Feb 28, 2020 30.89% = 15.24% × 2.03
Nov 29, 2019 28.03% = 14.22% × 1.97
Aug 30, 2019 — = — × 1.96
May 31, 2019 — = — × 1.98
Mar 1, 2019 — = — × 1.98

Based on: 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28), 10-K (reporting date: 2019-11-29), 10-Q (reporting date: 2019-08-30), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-03-01).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Adobe Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Nov 29, 2024 39.42% = 25.85% × 0.71 × 2.14
Aug 30, 2024 36.85% = 25.59% × 0.70 × 2.05
May 31, 2024 34.22% = 24.86% × 0.68 × 2.02
Mar 1, 2024 31.05% = 24.08% × 0.69 × 1.86
Dec 1, 2023 32.86% = 27.97% × 0.65 × 1.80
Sep 1, 2023 32.46% = 27.12% × 0.65 × 1.84
Jun 2, 2023 32.71% = 26.34% × 0.66 × 1.88
Mar 3, 2023 33.35% = 26.32% × 0.67 × 1.88
Dec 2, 2022 33.85% = 27.01% × 0.65 × 1.93
Sep 2, 2022 33.49% = 28.00% × 0.64 × 1.86
Jun 3, 2022 34.96% = 29.29% × 0.63 × 1.88
Mar 4, 2022 35.04% = 29.90% × 0.62 × 1.89
Dec 3, 2021 32.59% = 30.55% × 0.58 × 1.84
Sep 3, 2021 40.51% = 38.67% × 0.58 × 1.81
Jun 4, 2021 40.30% = 38.79% × 0.56 × 1.85
Mar 5, 2021 41.09% = 40.68% × 0.55 × 1.84
Nov 27, 2020 39.66% = 40.88% × 0.53 × 1.83
Aug 28, 2020 32.97% = 31.05% × 0.55 × 1.91
May 29, 2020 34.00% = 30.71% × 0.56 × 1.99
Feb 28, 2020 30.89% = 27.72% × 0.55 × 2.03
Nov 29, 2019 28.03% = 26.42% × 0.54 × 1.97
Aug 30, 2019 — = — × — × 1.96
May 31, 2019 — = — × — × 1.98
Mar 1, 2019 — = — × — × 1.98

Based on: 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28), 10-K (reporting date: 2019-11-29), 10-Q (reporting date: 2019-08-30), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-03-01).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

Adobe Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Nov 29, 2024 39.42% = 0.80 × 0.98 × 33.02% × 0.71 × 2.14
Aug 30, 2024 36.85% = 0.79 × 0.98 × 32.92% × 0.70 × 2.05
May 31, 2024 34.22% = 0.79 × 0.98 × 32.17% × 0.68 × 2.02
Mar 1, 2024 31.05% = 0.78 × 0.98 × 31.49% × 0.69 × 1.86
Dec 1, 2023 32.86% = 0.80 × 0.98 × 35.61% × 0.65 × 1.80
Sep 1, 2023 32.46% = 0.79 × 0.98 × 35.06% × 0.65 × 1.84
Jun 2, 2023 32.71% = 0.78 × 0.98 × 34.38% × 0.66 × 1.88
Mar 3, 2023 33.35% = 0.78 × 0.98 × 34.33% × 0.67 × 1.88
Dec 2, 2022 33.85% = 0.79 × 0.98 × 34.76% × 0.65 × 1.93
Sep 2, 2022 33.49% = 0.81 × 0.98 × 35.31% × 0.64 × 1.86
Jun 3, 2022 34.96% = 0.83 × 0.98 × 36.13% × 0.63 × 1.88
Mar 4, 2022 35.04% = 0.83 × 0.98 × 36.71% × 0.62 × 1.89
Dec 3, 2021 32.59% = 0.85 × 0.98 × 36.86% × 0.58 × 1.84
Sep 3, 2021 40.51% = 1.07 × 0.98 × 36.73% × 0.58 × 1.81
Jun 4, 2021 40.30% = 1.10 × 0.98 × 36.06% × 0.56 × 1.85
Mar 5, 2021 41.09% = 1.19 × 0.98 × 35.10% × 0.55 × 1.84
Nov 27, 2020 39.66% = 1.26 × 0.97 × 33.35% × 0.53 × 1.83
Aug 28, 2020 32.97% = 0.98 × 0.97 × 32.66% × 0.55 × 1.91
May 29, 2020 34.00% = 1.00 × 0.96 × 31.94% × 0.56 × 1.99
Feb 28, 2020 30.89% = 0.94 × 0.96 × 30.62% × 0.55 × 2.03
Nov 29, 2019 28.03% = 0.92 × 0.95 × 30.09% × 0.54 × 1.97
Aug 30, 2019 — = — × — × — × — × 1.96
May 31, 2019 — = — × — × — × — × 1.98
Mar 1, 2019 — = — × — × — × — × 1.98

Based on: 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28), 10-K (reporting date: 2019-11-29), 10-Q (reporting date: 2019-08-30), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-03-01).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Adobe Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Nov 29, 2024 18.39% = 25.85% × 0.71
Aug 30, 2024 17.97% = 25.59% × 0.70
May 31, 2024 16.93% = 24.86% × 0.68
Mar 1, 2024 16.70% = 24.08% × 0.69
Dec 1, 2023 18.23% = 27.97% × 0.65
Sep 1, 2023 17.60% = 27.12% × 0.65
Jun 2, 2023 17.44% = 26.34% × 0.66
Mar 3, 2023 17.76% = 26.32% × 0.67
Dec 2, 2022 17.51% = 27.01% × 0.65
Sep 2, 2022 18.00% = 28.00% × 0.64
Jun 3, 2022 18.57% = 29.29% × 0.63
Mar 4, 2022 18.58% = 29.90% × 0.62
Dec 3, 2021 17.70% = 30.55% × 0.58
Sep 3, 2021 22.33% = 38.67% × 0.58
Jun 4, 2021 21.82% = 38.79% × 0.56
Mar 5, 2021 22.28% = 40.68% × 0.55
Nov 27, 2020 21.66% = 40.88% × 0.53
Aug 28, 2020 17.23% = 31.05% × 0.55
May 29, 2020 17.13% = 30.71% × 0.56
Feb 28, 2020 15.24% = 27.72% × 0.55
Nov 29, 2019 14.22% = 26.42% × 0.54
Aug 30, 2019 — = — × —
May 31, 2019 — = — × —
Mar 1, 2019 — = — × —

Based on: 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28), 10-K (reporting date: 2019-11-29), 10-Q (reporting date: 2019-08-30), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-03-01).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2024 is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Adobe Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Nov 29, 2024 18.39% = 0.80 × 0.98 × 33.02% × 0.71
Aug 30, 2024 17.97% = 0.79 × 0.98 × 32.92% × 0.70
May 31, 2024 16.93% = 0.79 × 0.98 × 32.17% × 0.68
Mar 1, 2024 16.70% = 0.78 × 0.98 × 31.49% × 0.69
Dec 1, 2023 18.23% = 0.80 × 0.98 × 35.61% × 0.65
Sep 1, 2023 17.60% = 0.79 × 0.98 × 35.06% × 0.65
Jun 2, 2023 17.44% = 0.78 × 0.98 × 34.38% × 0.66
Mar 3, 2023 17.76% = 0.78 × 0.98 × 34.33% × 0.67
Dec 2, 2022 17.51% = 0.79 × 0.98 × 34.76% × 0.65
Sep 2, 2022 18.00% = 0.81 × 0.98 × 35.31% × 0.64
Jun 3, 2022 18.57% = 0.83 × 0.98 × 36.13% × 0.63
Mar 4, 2022 18.58% = 0.83 × 0.98 × 36.71% × 0.62
Dec 3, 2021 17.70% = 0.85 × 0.98 × 36.86% × 0.58
Sep 3, 2021 22.33% = 1.07 × 0.98 × 36.73% × 0.58
Jun 4, 2021 21.82% = 1.10 × 0.98 × 36.06% × 0.56
Mar 5, 2021 22.28% = 1.19 × 0.98 × 35.10% × 0.55
Nov 27, 2020 21.66% = 1.26 × 0.97 × 33.35% × 0.53
Aug 28, 2020 17.23% = 0.98 × 0.97 × 32.66% × 0.55
May 29, 2020 17.13% = 1.00 × 0.96 × 31.94% × 0.56
Feb 28, 2020 15.24% = 0.94 × 0.96 × 30.62% × 0.55
Nov 29, 2019 14.22% = 0.92 × 0.95 × 30.09% × 0.54
Aug 30, 2019 — = — × — × — × —
May 31, 2019 — = — × — × — × —
Mar 1, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28), 10-K (reporting date: 2019-11-29), 10-Q (reporting date: 2019-08-30), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-03-01).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2024 is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Adobe Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Nov 29, 2024 25.85% = 0.80 × 0.98 × 33.02%
Aug 30, 2024 25.59% = 0.79 × 0.98 × 32.92%
May 31, 2024 24.86% = 0.79 × 0.98 × 32.17%
Mar 1, 2024 24.08% = 0.78 × 0.98 × 31.49%
Dec 1, 2023 27.97% = 0.80 × 0.98 × 35.61%
Sep 1, 2023 27.12% = 0.79 × 0.98 × 35.06%
Jun 2, 2023 26.34% = 0.78 × 0.98 × 34.38%
Mar 3, 2023 26.32% = 0.78 × 0.98 × 34.33%
Dec 2, 2022 27.01% = 0.79 × 0.98 × 34.76%
Sep 2, 2022 28.00% = 0.81 × 0.98 × 35.31%
Jun 3, 2022 29.29% = 0.83 × 0.98 × 36.13%
Mar 4, 2022 29.90% = 0.83 × 0.98 × 36.71%
Dec 3, 2021 30.55% = 0.85 × 0.98 × 36.86%
Sep 3, 2021 38.67% = 1.07 × 0.98 × 36.73%
Jun 4, 2021 38.79% = 1.10 × 0.98 × 36.06%
Mar 5, 2021 40.68% = 1.19 × 0.98 × 35.10%
Nov 27, 2020 40.88% = 1.26 × 0.97 × 33.35%
Aug 28, 2020 31.05% = 0.98 × 0.97 × 32.66%
May 29, 2020 30.71% = 1.00 × 0.96 × 31.94%
Feb 28, 2020 27.72% = 0.94 × 0.96 × 30.62%
Nov 29, 2019 26.42% = 0.92 × 0.95 × 30.09%
Aug 30, 2019 — = — × — × —
May 31, 2019 — = — × — × —
Mar 1, 2019 — = — × — × —

Based on: 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28), 10-K (reporting date: 2019-11-29), 10-Q (reporting date: 2019-08-30), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-03-01).

The primary reason for the increase in net profit margin ratio over Q4 2024 is the increase in effect of taxes measured by tax burden ratio.