Adobe Systems Incorporated (ADBE)
Profitability ratios
Return on sales
| 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 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% |
| Operating profit margin | 31.35% | 31.16% | 30.51% | 29.95% | 34.26% | 33.95% | 33.64% | 33.91% | 34.64% | 35.45% | 36.25% | 36.72% | 36.76% | 36.53% | 35.75% | 34.75% | 32.93% | 32.10% | 31.36% | 30.11% |
| Pretax margin | 32.23% | 32.21% | 31.57% | 30.94% | 35.03% | 34.46% | 33.76% | 33.69% | 34.12% | 34.66% | 35.47% | 36.02% | 36.14% | 35.99% | 35.28% | 34.28% | 32.45% | 31.66% | 30.82% | 29.35% |
| Net profit margin | 25.85% | 25.59% | 24.86% | 24.08% | 27.97% | 27.12% | 26.34% | 26.32% | 27.01% | 28.00% | 29.29% | 29.90% | 30.55% | 38.67% | 38.79% | 40.68% | 40.88% | 31.06% | 30.72% | 27.72% |
The profitability ratios for Adobe Systems Incorporated have shown fluctuating trends over the periods analyzed.
- The gross profit margin has demonstrated a generally increasing trend, rising from 85.19% on February 28, 2020, to 89.04% on November 29, 2024. This indicates that Adobe has been able to improve its efficiency in generating revenue after accounting for the cost of goods sold.
- The operating profit margin increased initially but then showed some variability, reaching a peak of 36.76% on December 3, 2021, before declining to 31.35% on November 29, 2024. This suggests fluctuations in the company's ability to control its operating expenses and generate profits from its core operations.
- The pretax margin, reflecting the company's profitability before accounting for taxes, has followed a similar pattern as the operating profit margin. It peaked at 36.14% on December 3, 2021, but decreased to 32.23% on November 29, 2024, showing fluctuations in profitability before taxes.
- The net profit margin, representing the company's profitability after all expenses, including taxes, has shown some volatility, with a peak of 40.88% on November 27, 2020, and a low of 24.08% on March 1, 2024. This indicates that Adobe's bottom-line profitability has varied over the periods analyzed.
In conclusion, while Adobe Systems Incorporated has demonstrated improvements in gross profit margin over time, there have been fluctuations in the operating profit margin, pretax margin, and net profit margin. It is essential for the company to focus on cost management and operational efficiency to sustain and improve its profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.30% | 21.88% | 20.77% | 20.77% | 22.33% | 22.04% | 22.27% | 22.89% | 22.45% | 22.79% | 22.98% | 22.82% | 21.30% | 21.10% | 20.11% | 19.03% | 17.45% | 17.81% | 17.48% | 16.55% |
| Return on assets (ROA) | 18.39% | 17.97% | 16.93% | 16.70% | 18.23% | 17.60% | 17.44% | 17.76% | 17.51% | 18.00% | 18.57% | 18.58% | 17.70% | 22.33% | 21.82% | 22.28% | 21.66% | 17.23% | 17.13% | 15.24% |
| Return on total capital | 49.03% | 46.71% | 44.28% | 40.60% | 41.85% | 41.97% | 42.69% | 43.50% | 43.56% | 42.24% | 43.13% | 43.02% | 39.32% | 38.48% | 37.46% | 35.46% | 32.36% | 34.68% | 35.37% | 34.13% |
| Return on equity (ROE) | 39.42% | 36.85% | 34.22% | 31.05% | 32.86% | 32.46% | 32.71% | 33.35% | 33.85% | 33.49% | 34.96% | 35.04% | 32.59% | 40.51% | 40.30% | 41.09% | 39.66% | 32.97% | 34.00% | 30.89% |
Adobe Systems Incorporated has shown a consistent improvement in its profitability ratios over the analyzed period. The Operating return on assets (Operating ROA) has increased from 16.55% on February 28, 2020, to 22.33% on December 1, 2023, before slightly declining to 20.77% by August 30, 2024. This indicates that Adobe has been able to efficiently generate operating profits from its assets, with a peak performance in the period ending on March 3, 2023.
The Return on assets (ROA) also followed a positive trend, starting at 15.24% on February 28, 2020, and reaching a peak of 18.39% on November 29, 2024. This ratio measures Adobe's ability to generate profits from its total assets, indicating a strong performance in utilizing its assets efficiently for generating earnings.
Moreover, the Return on total capital has consistently improved from 34.13% on February 28, 2020, to 49.03% on November 29, 2024. This ratio reflects the company's ability to generate returns for both debt and equity holders, showing Adobe's effective utilization of its capital to produce profits.
Lastly, the Return on equity (ROE) has also displayed a positive trajectory, climbing from 30.89% on February 28, 2020, to 39.42% on November 29, 2024. This indicates the company's ability to generate profits for its shareholders from the equity invested in the business, showcasing a consistent growth trend in shareholder value creation.
Overall, the profitability ratios of Adobe Systems Incorporated demonstrate a strong performance in generating profitability from its assets, total capital, and equity, reflecting efficient management and financial health over the analyzed period.
See also:
Adobe Systems Incorporated Profitability Ratios (Quarterly Data)