Adobe Systems Incorporated (ADBE)

Gross profit margin

		Nov 29, 2024	Aug 30, 2024	May 31, 2024	Mar 1, 2024	Dec 1, 2023	Sep 1, 2023	Jun 2, 2023	Mar 3, 2023	Dec 2, 2022	Sep 2, 2022	Jun 3, 2022	Mar 4, 2022	Dec 3, 2021	Sep 3, 2021	Jun 4, 2021	Mar 5, 2021	Nov 27, 2020	Aug 28, 2020	May 29, 2020	Feb 28, 2020
Gross profit (ttm)	US$ in thousands	19,147,000	18,571,000	18,027,000	17,560,000	17,055,000	16,598,000	16,175,000	15,778,000	15,441,000	15,087,000	14,668,000	14,212,000	13,920,000	13,313,000	12,643,000	11,965,000	11,146,000	10,690,000	10,310,000	9,934,000
Revenue (ttm)	US$ in thousands	21,505,000	20,947,000	20,429,000	19,936,000	19,409,000	18,886,000	18,429,000	17,999,000	17,606,000	17,191,000	16,693,000	16,142,000	15,785,000	15,099,000	14,389,000	13,682,000	12,868,000	12,436,000	12,045,000	11,661,000
Gross profit margin		89.04%	88.66%	88.24%	88.08%	87.87%	87.89%	87.77%	87.66%	87.70%	87.76%	87.87%	88.04%	88.18%	88.17%	87.87%	87.45%	86.62%	85.96%	85.60%	85.19%

November 29, 2024 calculation

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

Adobe Systems Incorporated has shown a consistent and upward trend in its gross profit margin over the past few years. As of November 29, 2024, the gross profit margin stands at 89.04%, indicating that the company retains a high percentage of revenue after accounting for the cost of goods sold.

The steady increase in the gross profit margin from 85.19% on February 28, 2020, to 89.04% on November 29, 2024, reflects Adobe's ability to effectively manage its production costs and improve operational efficiency. This improvement suggests that the company has been able to maintain pricing power, optimize production processes, or control input costs, leading to enhanced profitability.

Investors and stakeholders generally view a high and rising gross profit margin positively, as it signifies that the company is effectively generating more profit from its core business activities. However, it is essential to complement this analysis with other financial metrics and qualitative factors to gain a holistic understanding of Adobe Systems Incorporated's overall financial health and performance.