Adobe Systems Incorporated (ADBE)
Return on total capital
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,741,000 | 6,912,000 | 6,120,000 | 5,818,000 | 4,292,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 14,105,000 | 16,518,000 | 14,051,000 | 14,797,000 | 13,264,000 |
| Return on total capital | 47.79% | 41.85% | 43.56% | 39.32% | 32.36% |
November 29, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,741,000K ÷ ($—K + $14,105,000K)
= 47.79%
Adobe Systems Incorporated has demonstrated a consistently strong performance in terms of return on total capital over the past five years. The company's return on total capital has shown a positive trend, increasing from 32.36% as of November 27, 2020, to 39.32% as of December 3, 2021, further rising to 43.56% as of December 2, 2022, and reaching a peak of 47.79% as of November 29, 2024.
This indicates that Adobe has been effectively utilizing its total capital to generate profits and create value for its stakeholders. The upward trend in return on total capital reflects the company's efficiency in deploying its capital resources to generate returns above the cost of that capital.
Overall, Adobe Systems Incorporated's strong performance in terms of return on total capital over the past five years suggests that the company has been effectively managing its capital investments and generating favorable returns for its investors.
Peer comparison
Nov 29, 2024