Adobe Systems Incorporated (ADBE)

Gross profit margin

		Nov 29, 2024	Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020
Gross profit	US$ in thousands	19,147,000	17,055,000	15,441,000	13,920,000	11,146,000
Revenue	US$ in thousands	21,505,000	19,409,000	17,606,000	15,785,000	12,868,000
Gross profit margin		89.04%	87.87%	87.70%	88.18%	86.62%

November 29, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $19,147,000K ÷ $21,505,000K
= 89.04%

Based on the data provided, the gross profit margin of Adobe Systems Incorporated has showcased a consistent upward trend over the past five years. Starting at 86.62% on November 27, 2020, the gross profit margin increased to 88.18% by December 3, 2021, followed by a slight dip to 87.70% by December 2, 2022. However, the margin rebounded and continued its upward trajectory, reaching 87.87% by December 1, 2023, and further improving to 89.04% by November 29, 2024.

This consistent improvement in gross profit margin indicates that Adobe has been effectively managing its cost of goods sold and enhancing its pricing strategies to generate more profit per dollar of sales. A higher gross profit margin is generally viewed positively by investors as it signifies increased efficiency and profitability in the company's operations. Adobe's ability to sustain and improve its gross profit margin over the years reflects positively on its financial performance and operational efficiency.