Stock Analysis on Net
Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Common-Size Balance Sheet: Assets 

Adobe Inc., common-size consolidated balance sheet: assets

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Nov 28, 2025 Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020
Cash and cash equivalents 18.41 25.18 23.98 15.59 14.11 18.44
Short-term investments 3.95 0.90 2.35 6.85 7.17 6.23
Trade receivables, net of allowances for doubtful accounts 7.95 6.85 7.47 7.60 6.89 5.76
Prepaid expenses and other current assets 4.15 4.21 3.42 3.07 3.65 3.11
Current assets 34.46% 37.16% 37.22% 33.12% 31.82% 33.54%
Property and equipment, net 6.35 6.40 6.82 7.02 6.14 6.25
Operating lease right-of-use assets, net 1.06 0.93 1.20 1.50 1.63 2.01
Goodwill 43.59 42.30 43.00 47.07 46.50 44.23
Other intangibles, net 1.68 2.59 3.65 5.33 6.68 5.60
Deferred income taxes 7.41 5.48 4.00 2.86 3.98 5.64
Other assets 5.46 5.14 4.11 3.10 3.24 2.73
Long-term assets 65.54% 62.84% 62.78% 66.88% 68.18% 66.46%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2025-11-28), 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27).

The asset composition of the entity demonstrates notable shifts over the six-year period. Current assets initially decreased as a percentage of total assets between 2020 and 2021, then increased significantly in 2023, remaining relatively stable in 2024 before decreasing again in 2025. Long-term assets exhibited an inverse pattern, declining from 2023 to 2024 and then increasing in 2025.

Liquidity and Current Assets
Current assets represented approximately one-third of total assets throughout the period, fluctuating between 31.82% and 37.22%. A substantial increase in cash and cash equivalents, from 14.11% in 2021 to 25.18% in 2024, contributed to the rise in current assets observed in 2023 and 2024. However, this was partially offset by a decline in short-term investments, which decreased from 7.17% in 2021 to 0.90% in 2024. Trade receivables remained relatively stable, ranging between 6.85% and 7.95% of total assets. A decrease in current assets is observed in 2025, driven by a reduction in cash and cash equivalents.
Long-Term Investments and Intangibles
Goodwill consistently constituted a significant portion of long-term assets, ranging from 43.00% to 47.07% of the total. Other intangibles experienced a notable decrease as a percentage of total assets, falling from 6.68% in 2021 to 1.68% in 2025. This suggests potential amortization or impairment of these assets. Property and equipment remained relatively stable, fluctuating between 6.14% and 7.02% of total assets. Operating lease right-of-use assets steadily decreased as a percentage of total assets throughout the period.
Other Asset Trends
Deferred income taxes showed considerable volatility, decreasing from 5.64% in 2020 to 2.86% in 2022, then increasing to 7.41% in 2025. Other assets also exhibited an increasing trend, rising from 2.73% in 2020 to 5.46% in 2025, potentially indicating accumulated investments or other non-categorized holdings. The combined effect of these changes contributed to the overall shift in long-term asset composition.

In summary, the entity’s asset allocation shifted from a greater reliance on goodwill and other intangibles to a larger proportion of cash and cash equivalents, particularly between 2021 and 2024. The composition then began to rebalance in 2025, with a decrease in cash and an increase in deferred income taxes and other assets. These changes warrant further investigation to understand the underlying strategic decisions and their impact on the entity’s financial position.