Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Adobe Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Adobe Inc. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Adobe Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Adobe Inc. net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Adobe Inc. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Adobe Inc. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Gross Profit Margin
Adobe Inc., gross profit margin 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) | |||||||
| Gross profit | 17,055) | 15,441) | 13,920) | 11,146) | 9,499) | 7,835) | |
| Revenue | 19,409) | 17,606) | 15,785) | 12,868) | 11,171) | 9,030) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 87.87% | 87.70% | 88.18% | 86.62% | 85.03% | 86.77% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Accenture PLC | 32.34% | 31.99% | 32.38% | 31.53% | 30.81% | — | |
| Autodesk Inc. | 90.41% | 90.46% | 91.11% | 90.08% | 88.87% | — | |
| Cadence Design Systems Inc. | 89.36% | 89.57% | 89.73% | 88.61% | 88.60% | — | |
| CrowdStrike Holdings Inc. | 73.17% | 73.60% | 73.75% | 70.58% | — | — | |
| International Business Machines Corp. | 55.45% | 54.00% | 54.90% | 48.32% | 47.30% | — | |
| Intuit Inc. | 78.13% | 81.09% | 82.53% | 82.05% | 82.80% | — | |
| Microsoft Corp. | 68.92% | 68.40% | 68.93% | 67.78% | 65.90% | — | |
| Oracle Corp. | 72.85% | 79.08% | 80.59% | 79.68% | 79.76% | — | |
| Palo Alto Networks Inc. | 72.29% | 68.76% | 70.05% | 70.68% | 72.12% | — | |
| Salesforce Inc. | 73.34% | 73.48% | 74.41% | 75.23% | 74.02% | — | |
| ServiceNow Inc. | 78.59% | 78.29% | 77.05% | 78.16% | 76.98% | — | |
| Synopsys Inc. | 79.08% | 79.07% | 79.50% | 78.44% | 77.60% | 76.42% | |
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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 17,055 ÷ 19,409 = 87.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Adobe Inc. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Operating Profit Margin
Adobe Inc., operating profit margin 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) | |||||||
| Operating income | 6,650) | 6,098) | 5,802) | 4,237) | 3,268) | 2,840) | |
| Revenue | 19,409) | 17,606) | 15,785) | 12,868) | 11,171) | 9,030) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 34.26% | 34.64% | 36.76% | 32.93% | 29.25% | 31.45% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Accenture PLC | 13.74% | 15.21% | 15.08% | 14.69% | 14.59% | — | |
| Autodesk Inc. | 19.76% | 14.08% | 16.60% | 10.48% | -0.97% | — | |
| Cadence Design Systems Inc. | 30.59% | 30.15% | 26.07% | 24.06% | 21.05% | — | |
| CrowdStrike Holdings Inc. | -8.48% | -9.82% | -10.58% | -30.34% | — | — | |
| International Business Machines Corp. | 15.17% | 13.50% | 11.97% | 9.22% | 13.67% | — | |
| Intuit Inc. | 21.86% | 20.20% | 25.95% | 28.34% | 27.33% | — | |
| Microsoft Corp. | 41.77% | 42.06% | 41.59% | 37.03% | 34.14% | — | |
| Oracle Corp. | 26.21% | 25.74% | 37.58% | 35.57% | 34.26% | — | |
| Palo Alto Networks Inc. | 5.62% | -3.43% | -7.15% | -5.25% | -1.87% | — | |
| Salesforce Inc. | 3.29% | 2.07% | 2.14% | 1.74% | 4.03% | — | |
| ServiceNow Inc. | 8.49% | 4.90% | 4.36% | 4.40% | 1.22% | — | |
| Synopsys Inc. | 21.72% | 22.87% | 17.48% | 16.83% | 15.48% | 11.54% | |
| Operating Profit Margin, Sector | |||||||
| Software & Services | 27.80% | 27.74% | 28.66% | 24.84% | 24.12% | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | 26.21% | 28.31% | 28.72% | 24.93% | 25.33% | — | |
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
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 6,650 ÷ 19,409 = 34.26%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Adobe Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
Adobe Inc., net profit margin 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) | |||||||
| Net income | 5,428) | 4,756) | 4,822) | 5,260) | 2,951) | 2,591) | |
| Revenue | 19,409) | 17,606) | 15,785) | 12,868) | 11,171) | 9,030) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 27.97% | 27.01% | 30.55% | 40.88% | 26.42% | 28.69% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Accenture PLC | 10.72% | 11.17% | 11.69% | 11.52% | 11.06% | — | |
| Autodesk Inc. | 16.44% | 11.33% | 31.88% | 6.55% | -3.14% | — | |
| Cadence Design Systems Inc. | 25.46% | 23.84% | 23.29% | 22.02% | 42.33% | — | |
| CrowdStrike Holdings Inc. | -8.18% | -16.18% | -10.59% | -29.45% | — | — | |
| International Business Machines Corp. | 12.13% | 2.71% | 10.01% | 7.59% | 12.22% | — | |
| Intuit Inc. | 16.59% | 16.23% | 21.41% | 23.78% | 22.95% | — | |
| Microsoft Corp. | 34.15% | 36.69% | 36.45% | 30.96% | 31.18% | — | |
| Oracle Corp. | 17.02% | 15.83% | 33.96% | 25.94% | 28.05% | — | |
| Palo Alto Networks Inc. | 6.38% | -4.85% | -11.72% | -7.83% | -2.82% | — | |
| Salesforce Inc. | 0.66% | 5.45% | 19.16% | 0.74% | 8.36% | — | |
| ServiceNow Inc. | 19.30% | 4.49% | 3.90% | 2.62% | 18.11% | — | |
| Synopsys Inc. | 21.05% | 19.38% | 18.02% | 18.03% | 15.84% | 13.86% | |
| Net Profit Margin, Sector | |||||||
| Software & Services | 22.29% | 22.02% | 25.95% | 20.66% | 21.76% | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | 22.04% | 23.93% | 25.58% | 21.38% | 22.17% | — | |
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
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 5,428 ÷ 19,409 = 27.97%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Adobe Inc. net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Return on Equity (ROE)
Adobe Inc., ROE 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) | |||||||
| Net income | 5,428) | 4,756) | 4,822) | 5,260) | 2,951) | 2,591) | |
| Stockholders’ equity | 16,518) | 14,051) | 14,797) | 13,264) | 10,530) | 9,362) | |
| Profitability Ratio | |||||||
| ROE1 | 32.86% | 33.85% | 32.59% | 39.66% | 28.03% | 27.67% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Accenture PLC | 26.75% | 31.11% | 30.25% | 30.05% | 33.17% | — | |
| Autodesk Inc. | 71.88% | 58.53% | 125.14% | — | — | — | |
| Cadence Design Systems Inc. | 30.58% | 30.93% | 25.39% | 23.69% | 47.03% | — | |
| CrowdStrike Holdings Inc. | -12.52% | -22.89% | -10.64% | -19.10% | — | — | |
| International Business Machines Corp. | 33.29% | 7.47% | 30.38% | 27.14% | 45.25% | — | |
| Intuit Inc. | 13.81% | 12.57% | 20.89% | 35.76% | 41.53% | — | |
| Microsoft Corp. | 35.09% | 43.68% | 43.15% | 37.43% | 38.35% | — | |
| Oracle Corp. | 792.45% | — | 262.43% | 83.94% | 50.87% | — | |
| Palo Alto Networks Inc. | 25.15% | -127.14% | -78.63% | -24.23% | -5.16% | — | |
| Salesforce Inc. | 0.36% | 2.48% | 9.81% | 0.37% | 7.11% | — | |
| ServiceNow Inc. | 22.69% | 6.46% | 6.22% | 4.18% | 29.45% | — | |
| Synopsys Inc. | 20.01% | 17.85% | 14.31% | 13.54% | 13.04% | 12.43% | |
| ROE, Sector | |||||||
| Software & Services | 29.34% | 31.91% | 37.56% | 31.66% | 36.26% | — | |
| ROE, Industry | |||||||
| Information Technology | 31.78% | 38.36% | 42.36% | 35.12% | 36.53% | — | |
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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 5,428 ÷ 16,518 = 32.86%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Adobe Inc. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Return on Assets (ROA)
Adobe Inc., ROA 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) | |||||||
| Net income | 5,428) | 4,756) | 4,822) | 5,260) | 2,951) | 2,591) | |
| Total assets | 29,779) | 27,165) | 27,241) | 24,284) | 20,762) | 18,769) | |
| Profitability Ratio | |||||||
| ROA1 | 18.23% | 17.51% | 17.70% | 21.66% | 14.22% | 13.80% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Accenture PLC | 13.41% | 14.55% | 13.68% | 13.78% | 16.04% | — | |
| Autodesk Inc. | 8.72% | 5.77% | 16.60% | 3.47% | -1.71% | — | |
| Cadence Design Systems Inc. | 18.36% | 16.53% | 15.87% | 14.95% | 29.46% | — | |
| CrowdStrike Holdings Inc. | -3.65% | -6.49% | -3.39% | -10.09% | — | — | |
| International Business Machines Corp. | 5.55% | 1.29% | 4.35% | 3.58% | 6.20% | — | |
| Intuit Inc. | 8.58% | 7.45% | 13.29% | 16.70% | 24.78% | — | |
| Microsoft Corp. | 17.56% | 19.94% | 18.36% | 14.70% | 13.69% | — | |
| Oracle Corp. | 6.33% | 6.15% | 10.48% | 8.78% | 10.20% | — | |
| Palo Alto Networks Inc. | 3.03% | -2.18% | -4.87% | -2.95% | -1.24% | — | |
| Salesforce Inc. | 0.21% | 1.52% | 6.14% | 0.23% | 3.61% | — | |
| ServiceNow Inc. | 9.96% | 2.44% | 2.13% | 1.36% | 10.41% | — | |
| Synopsys Inc. | 11.90% | 10.45% | 8.66% | 8.27% | 8.31% | 7.04% | |
| ROA, Sector | |||||||
| Software & Services | 11.38% | 11.56% | 12.60% | 9.97% | 10.89% | — | |
| ROA, Industry | |||||||
| Information Technology | 13.01% | 14.99% | 15.62% | 12.12% | 12.78% | — | |
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
ROA = 100 × Net income ÷ Total assets
= 100 × 5,428 ÷ 29,779 = 18.23%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Adobe Inc. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |