Common-Size Balance Sheet: Assets
Quarterly Data
Adobe Inc., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2026-02-27), 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28).
The composition of assets has shifted considerably over the analyzed period, spanning from February 2020 to November 2025. A notable trend is the increasing proportion of cash and cash equivalents, particularly pronounced from early 2023, peaking at 25.53% of total assets in May 2024 before moderating slightly. Conversely, short-term investments have experienced a consistent decline, falling from nearly 7% in February 2020 to below 1% by May 2024, with a slight recovery in subsequent periods.
Current assets, as a percentage of total assets, demonstrate fluctuations but generally remain in the 30-36% range. Trade receivables exhibit a gradual increase through December 2022, followed by some volatility, but remain relatively stable. Prepaid expenses and other current assets also show a generally increasing trend, particularly in the later periods of the analysis. Long-term assets represent the majority of the asset base, consistently accounting for approximately 63-71% of total assets.
- Cash Position
- The substantial increase in cash and cash equivalents suggests a strengthening liquidity position, potentially driven by strong operating performance or strategic decisions to build reserves. This trend is particularly evident in the periods following September 2023.
- Investment Strategy
- The decline in short-term investments, coupled with the rise in cash, indicates a potential shift in investment strategy. The company may be prioritizing liquidity and reducing exposure to shorter-term investment vehicles. The slight rebound in short-term investments in late 2024 and 2025 may signal a re-evaluation of this strategy.
- Goodwill and Intangibles
- Goodwill consistently represents a significant portion of the asset base, generally between 43% and 51%. Other intangibles, net, have decreased as a percentage of total assets over the period, suggesting amortization or impairment. Deferred income taxes show a marked increase in the later periods, rising from approximately 4% to over 7% by November 2025.
- Long-Term Asset Composition
- Within long-term assets, goodwill dominates. Property and equipment, net, remains relatively stable, fluctuating between 6% and 8%. Operating lease right-of-use assets have decreased as a percentage of total assets, indicating a potential reduction in lease obligations or changes in accounting treatment. Other assets have shown a gradual increase, particularly in the most recent periods.
Overall, the asset composition reflects a dynamic financial position. The increasing cash balance and decreasing short-term investments suggest a more conservative approach to asset management, while the consistent presence of goodwill highlights the importance of past acquisitions. The increasing deferred income taxes warrant further investigation to understand the underlying drivers.
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