Adobe Systems Incorporated (ADBE)
Return on total capital
| Feb 28, 2025 | Nov 30, 2024 | Nov 29, 2024 | Aug 31, 2024 | Aug 30, 2024 | May 31, 2024 | Mar 1, 2024 | Feb 29, 2024 | Dec 1, 2023 | Nov 30, 2023 | Sep 1, 2023 | Aug 31, 2023 | Jun 2, 2023 | May 31, 2023 | Mar 3, 2023 | Feb 28, 2023 | Dec 2, 2022 | Nov 30, 2022 | Sep 2, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,335,000 | 8,083,000 | 7,927,000 | 6,965,000 | 6,779,000 | 6,623,000 | 6,574,000 | 7,349,000 | 7,212,000 | 7,052,000 | 6,892,000 | 6,752,000 | 6,568,000 | 6,437,000 | 6,266,000 | 6,120,000 | 5,781,000 | 5,756,000 | 5,771,000 | 5,858,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 13,095,000 | 14,105,000 | 14,105,000 | 14,545,000 | 14,545,000 | 14,843,000 | 15,460,000 | 15,460,000 | 16,518,000 | 16,518,000 | 15,776,000 | 15,776,000 | 14,838,000 | 14,838,000 | 14,206,000 | 14,206,000 | 14,051,000 | 14,051,000 | 14,373,000 | 14,373,000 |
| Return on total capital | 63.65% | 57.31% | 56.20% | 47.89% | 46.61% | 44.62% | 42.52% | 47.54% | 43.66% | 42.69% | 43.69% | 42.80% | 44.26% | 43.38% | 44.11% | 43.08% | 41.14% | 40.97% | 40.15% | 40.76% |
February 28, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,335,000K ÷ ($—K + $13,095,000K)
= 63.65%
Adobe Systems Incorporated has shown a consistently strong performance in terms of return on total capital over the past few fiscal periods. From August 31, 2022, to February 28, 2025, the return on total capital has been steadily increasing from 40.76% to 63.65%. This indicates that Adobe has been effectively utilizing its capital to generate profits for its shareholders.
The increasing trend in the return on total capital suggests that the company's operations and investments are becoming more efficient and profitable over time. The highest return on total capital was reported on February 28, 2025, at 63.65%, reflecting Adobe's ability to generate significant returns relative to the total capital employed in its operations.
Overall, the upward trajectory of Adobe's return on total capital is a positive sign of the company's financial health and management effectiveness in generating returns for its stakeholders. Investors and analysts may view this trend favorably as it demonstrates Adobe's ability to deliver value and generate profits from its capital investments.
Peer comparison
Feb 28, 2025