Adobe Systems Incorporated (ADBE)
Return on total capital
| Mar 1, 2024 | Dec 1, 2023 | Sep 1, 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 | Nov 29, 2019 | Aug 30, 2019 | May 31, 2019 | Mar 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,231,000 | 6,781,000 | 6,429,000 | 6,179,000 | 6,120,000 | 6,071,000 | 6,032,000 | 5,926,000 | 5,818,000 | 5,546,000 | 5,189,000 | 4,803,000 | 4,292,000 | 4,062,000 | 3,849,000 | 3,572,000 | 3,363,000 | 3,095,746 | 2,943,211 | 2,903,373 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 15,460,000 | 16,518,000 | 15,776,000 | 14,206,000 | 14,051,000 | 14,373,000 | 13,985,000 | 13,775,000 | 14,797,000 | 14,414,000 | 13,852,000 | 13,546,000 | 13,264,000 | 11,713,000 | 10,881,000 | 10,465,000 | 10,530,000 | 10,243,000 | 9,932,000 | 9,871,000 |
| Return on total capital | 40.30% | 41.05% | 40.75% | 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% | 31.94% | 30.22% | 29.63% | 29.41% |
March 1, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,231,000K ÷ ($—K + $15,460,000K)
= 40.30%
Adobe Systems Incorporated has demonstrated consistent and strong performance in generating returns on total capital over the past few years. The return on total capital has exhibited a general upward trend over the most recent quarters, reaching a peak of 43.56% on Dec 1, 2023, before slightly decreasing in subsequent periods.
The company's return on total capital has consistently been above 30%, indicating robust efficiency in utilizing both debt and equity capital to generate profits. This suggests that Adobe Systems is effectively deploying its financial resources to generate earnings and create value for shareholders.
Overall, Adobe Systems' strong return on total capital reflects the company's efficient capital allocation strategies and successful management of its balance sheet, which have contributed to its overall financial performance and market competitiveness.
Peer comparison
Mar 1, 2024