Adobe Systems Incorporated (ADBE)
Operating return on assets (Operating ROA)
| Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,650,000 | 6,098,000 | 5,802,000 | 4,237,000 | 3,268,000 |
| Total assets | US$ in thousands | 29,779,000 | 27,165,000 | 27,241,000 | 24,284,000 | 20,762,000 |
| Operating ROA | 22.33% | 22.45% | 21.30% | 17.45% | 15.74% |
December 1, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $6,650,000K ÷ $29,779,000K
= 22.33%
To analyze Adobe Inc's operating return on assets (operating ROA) over the past five years, we can observe a positive trend in the ratio. From 2019 to 2023, the operating ROA has shown consistent improvement, increasing from 15.74% to 22.33%. This upward trajectory suggests that Adobe has been effectively utilizing its assets to generate operating income over the years.
The operating ROA measures the company's ability to generate operating income from its assets, indicating efficiency in asset utilization. The steady improvement in this ratio reflects Adobe's effective management of its operational assets to generate higher returns.
This positive trend in operating ROA indicates that Adobe has been successful in increasing its operational efficiency and optimizing its asset utilization, which bodes well for its overall financial performance and potential for future growth.
Peer comparison
Dec 1, 2023