Adobe Systems Incorporated (ADBE)
Net profit margin
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,560,000 | 5,428,000 | 4,756,000 | 4,822,000 | 5,260,000 |
| Revenue | US$ in thousands | 21,505,000 | 19,409,000 | 17,606,000 | 15,785,000 | 12,868,000 |
| Net profit margin | 25.85% | 27.97% | 27.01% | 30.55% | 40.88% |
November 29, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $5,560,000K ÷ $21,505,000K
= 25.85%
The net profit margin of Adobe Systems Incorporated has shown a declining trend over the past five years. In November 2020, the net profit margin stood at 40.88%, indicating that the company was able to convert 40.88% of its revenues into profits. However, by November 2024, the net profit margin had decreased to 25.85%. This decline suggests that Adobe's profitability relative to its revenue has decreased over the years.
The gradual decrease in net profit margin could be attributed to various factors such as increased operating expenses, changes in pricing strategies, or a decrease in revenue growth compared to expenses. It is important for investors and stakeholders to closely monitor this metric to assess the company's ability to generate profits and manage its expenses effectively.
Peer comparison
Nov 29, 2024