Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Adobe Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity
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 composition of liabilities and stockholders’ equity has undergone notable shifts between November 2020 and November 2025. A significant trend is the increasing proportion of total liabilities relative to stockholders’ equity, rising from 45.38% to 60.59% over the period. This indicates a growing reliance on debt financing or an increase in other liabilities compared to equity funding.
- Current Liabilities
- Current liabilities as a percentage of the total increased substantially from 22.70% in November 2020 to 34.80% in December 2023, before stabilizing at 34.58% in November 2025. A key driver of this increase appears to be deferred revenue, which grew consistently from 14.94% to 23.41% over the same period. Accrued expenses and other current liabilities also exhibited a marked increase, rising from 5.86% to 8.98% by November 2025. The introduction of derivative collateral liabilities in December 2023, and their subsequent growth, also contributed to the rise in current liabilities.
- Long-Term Liabilities
- Long-term liabilities demonstrated a more moderate increase initially, decreasing from 22.68% in November 2020 to 16.82% in December 2023, before increasing significantly to 26.01% in November 2025. This increase is largely attributable to a substantial rise in debt excluding the current portion, which nearly doubled from 12.20% to 21.05% between December 2023 and November 2025. Long-term operating lease liabilities remained relatively stable.
- Stockholders’ Equity
- Stockholders’ equity experienced a consistent decline as a percentage of the total, falling from 54.62% in November 2020 to 39.41% in November 2025. This decrease is primarily driven by a significant increase in treasury stock, which grew from -55.78% to -165.61% over the period. While retained earnings increased substantially, from 80.76% to 153.76%, this was not sufficient to offset the impact of the growing treasury stock. Additional paid-in-capital also increased, but at a slower rate.
- Specific Liability Accounts
- Several specific liability accounts exhibited notable trends. Accrued compensation costs increased steadily from 2.90% to 4.56%. Excise taxes payable and fair value of derivative liabilities were introduced in later periods, representing a small but growing portion of total liabilities. Trade payables fluctuated, with a peak in December 2022 (1.40%) and a return to levels similar to those in November 2020 (1.41%) by November 2025.
Overall, the observed trends suggest a shift in the company’s financial structure towards greater leverage and a more substantial investment in treasury stock, potentially indicating share repurchase activity. The increasing deferred revenue suggests strong sales performance or a growing backlog of obligations. Continued monitoring of these trends is warranted to assess their long-term implications for the company’s financial health.