Adobe Systems Incorporated (ADBE)
Profitability ratios
Return on sales
| Nov 30, 2024 | Nov 29, 2024 | Dec 1, 2023 | Nov 30, 2023 | Dec 2, 2022 | |
|---|---|---|---|---|---|
| Gross profit margin | 89.04% | 89.04% | 87.87% | 87.87% | 87.70% |
| Operating profit margin | 31.35% | 31.35% | 34.26% | 34.26% | 34.64% |
| Pretax margin | 32.23% | 32.23% | 35.03% | 35.03% | 34.12% |
| Net profit margin | 25.85% | 25.85% | 27.97% | 27.97% | 27.01% |
Adobe Systems Incorporated has demonstrated consistently high profitability ratios over the years, as evidenced by its gross profit margin, operating profit margin, pretax margin, and net profit margin.
The company's gross profit margin has been very strong, ranging from 87.70% to 89.04% in recent years, indicating efficient production and cost control processes.
Similarly, Adobe's operating profit margin, which reflects earnings before interest and taxes as a percentage of revenue, has remained robust, hovering around 31% to 34% over the same period. This indicates that the company is effectively managing its operating expenses and generating healthy profits from its core business operations.
The pretax margin, which represents pre-tax earnings as a percentage of revenue, has also been consistently solid, with values ranging from 32.23% to 35.03%. This indicates the company's ability to generate strong profits before accounting for taxes and other non-operating expenses.
Lastly, Adobe's net profit margin, which measures net income as a percentage of revenue, has remained impressive, varying between 25.85% and 27.97%. This suggests that the company is efficiently converting its revenue into net income after accounting for all expenses and taxes.
Overall, Adobe Systems Incorporated's profitability ratios reflect a well-managed and profitable business, with a strong focus on cost control and revenue generation.
Return on investment
| Nov 30, 2024 | Nov 29, 2024 | Dec 1, 2023 | Nov 30, 2023 | Dec 2, 2022 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.30% | 22.30% | 22.33% | 22.33% | 22.45% |
| Return on assets (ROA) | 18.39% | 18.39% | 18.23% | 18.23% | 17.51% |
| Return on total capital | 50.34% | 47.79% | 41.85% | 36.52% | 43.56% |
| Return on equity (ROE) | 39.42% | 39.42% | 32.86% | 32.86% | 33.85% |
Adobe Systems Incorporated has shown consistent and strong profitability performance over the years based on the provided financial ratios.
1. Operating return on assets (Operating ROA) has remained relatively stable, hovering around 22.30% to 22.45% from December 2022 to November 2024. This ratio indicates that Adobe is efficient in generating profits from its operational assets.
2. Return on assets (ROA) has shown a positive trend, increasing from 17.51% in December 2022 to 18.39% in November 2024. This demonstrates Adobe's ability to generate earnings relative to its total assets.
3. Return on total capital has shown growth from 43.56% in December 2022 to 50.34% in November 2024. This indicates that Adobe's overall capital investment has been generating increasing returns over the years.
4. Return on equity (ROE) has also shown improvement, increasing from 33.85% in December 2022 to 39.42% in November 2024. This ratio signifies how effectively Adobe is utilizing shareholder equity to generate profits for its investors.
Overall, Adobe Systems Incorporated has maintained a strong profitability position, with consistent or improving performance across key profitability ratios, reflecting efficient asset utilization and effective capital management.