Adobe Systems Incorporated (ADBE)
Pretax margin
| Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 6,799,000 | 6,008,000 | 5,705,000 | 4,176,000 | 3,205,000 |
| Revenue | US$ in thousands | 19,409,000 | 17,606,000 | 15,785,000 | 12,868,000 | 11,171,000 |
| Pretax margin | 35.03% | 34.12% | 36.14% | 32.45% | 28.69% |
December 1, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $6,799,000K ÷ $19,409,000K
= 35.03%
The pretax margin of Adobe Inc has shown a consistent positive trend over the past five years. In the most recent fiscal year (ending Dec 1, 2023), the pretax margin increased to 35.03%, reflecting a slight improvement from the previous year's 34.12%. This indicates that Adobe Inc has been effectively controlling its operating expenses in relation to its revenue, resulting in higher profitability before accounting for taxes. The company's ability to maintain and improve its pretax margin over time demonstrates strong financial management and operational efficiency. Overall, the upward trend in the pretax margin suggests that Adobe Inc has been successful in generating higher earnings relative to its total revenue.
Peer comparison
Dec 1, 2023