Adobe Systems Incorporated (ADBE)
Return on total capital
| Nov 30, 2024 | Nov 29, 2024 | Dec 1, 2023 | Nov 30, 2023 | Dec 2, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,100,000 | 6,741,000 | 6,912,000 | 6,032,000 | 6,120,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 14,105,000 | 14,105,000 | 16,518,000 | 16,518,000 | 14,051,000 |
| Return on total capital | 50.34% | 47.79% | 41.85% | 36.52% | 43.56% |
November 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,100,000K ÷ ($—K + $14,105,000K)
= 50.34%
The Return on Total Capital for Adobe Systems Incorporated has exhibited a generally positive trend over the specified period, starting at 43.56% in December 2, 2022, and increasing to 50.34% by November 30, 2024. This indicates that Adobe has been effective in generating returns from its capital base. The upward trajectory of the return on total capital suggests that the company is efficiently utilizing its resources to generate profits. A higher return on total capital reflects the company's ability to generate more profit relative to the capital invested, demonstrating strong operational efficiency and effectiveness in deploying its assets. Adobe's consistent improvement in return on total capital is a positive indicator of the company's financial health and management's ability to generate value for its shareholders.
Peer comparison
Nov 30, 2024