Adobe Inc. (NASDAQ:ADBE)

Current assets and adjusted current assets demonstrate a generally increasing trend over the observed period, with a recent deceleration in growth and a slight decline in the latest reporting period. Initial values show a modest increase from 2020 to 2022, followed by a more substantial rise in 2023. However, the most recent two periods, 2024 and 2025, indicate a leveling off and a minor decrease in both metrics.

Overall Trend

From November 2020 to December 2023, both current assets and adjusted current assets exhibited consistent growth. Current assets increased from US$8,146 million to US$11,084 million, while adjusted current assets rose from US$8,167 million to US$11,100 million. This represents a compound annual growth rate of approximately 13.4% for current assets and 13.3% for adjusted current assets over this four-year span.

Recent Performance (2024-2025)

The growth trajectory appears to have moderated in the subsequent two periods. Current assets reached US$11,232 million in November 2024, a relatively small increase from the prior year, before decreasing to US$10,163 million in November 2025. Adjusted current assets followed a similar pattern, peaking at US$11,246 million in November 2024 and then declining to US$10,176 million in November 2025. This represents a decline of approximately 9.5% for both metrics from 2024 to 2025.

Adjustment Impact

The difference between current assets and adjusted current assets remains consistently small throughout the period, generally ranging between US$21 million and US$33 million annually. This suggests that the adjustments made to current assets are relatively minor in magnitude and do not significantly alter the overall picture of the company’s short-term asset position. The adjustments appear to be consistently positive, indicating an upward revision to the reported current asset value.

The deceleration in growth and subsequent decline in both current and adjusted current assets during the 2024-2025 period warrant further investigation. Potential factors contributing to this trend could include changes in working capital management, shifts in sales patterns, or alterations in the composition of current assets.

Total assets and adjusted total assets both demonstrate an overall increasing trend between November 2020 and November 2024, followed by a decrease in November 2025. However, the magnitude of growth and subsequent decline differs between the two measures.

Overall Trend

From November 2020 to November 2024, total assets increased from US$24,284 million to US$30,230 million, representing a cumulative growth of approximately 24.8%. Adjusted total assets exhibited a similar pattern, rising from US$22,935 million to US$28,587 million, a cumulative increase of roughly 24.6% over the same period.

Growth Rate Comparison

The growth rate of total assets slightly exceeded that of adjusted total assets during the period from 2020 to 2024. This suggests that the adjustments being made to total assets are, on average, less substantial than the overall asset increases.

Recent Performance (2024-2025)

A notable shift occurs between November 2024 and November 2025. Total assets decreased to US$29,496 million, a decline of approximately 2.4%. Adjusted total assets experienced a more significant decrease, falling to US$27,323 million, representing a reduction of approximately 4.4%. This indicates that the adjustments made in 2025 had a proportionally larger downward impact than the change in reported total assets.

Adjustment Impact

The difference between total assets and adjusted total assets remained relatively consistent between 2020 and 2024, generally ranging between US$1,300 million and US$1,100 million. However, this difference widened in 2025 to approximately US$2,173 million, highlighting a larger adjustment being applied in that year. This suggests a potentially significant re-evaluation or write-down of certain asset categories.

In summary, while both measures of total assets generally increased from 2020 to 2024, the year 2025 saw a decline in both, with adjusted total assets experiencing a more substantial decrease and a larger divergence from the reported total assets.

Current liabilities exhibited a general increasing trend from November 27, 2020, to November 29, 2024, before decreasing slightly as of November 28, 2025. Adjusted current liabilities demonstrate a more volatile pattern, with increases followed by decreases, and a significant rise in the most recent period.

Overall Trends

From 2020 to 2024, current liabilities increased from US$5,512 million to US$10,521 million, representing a substantial growth of approximately 91%. This growth slowed in 2025, with current liabilities decreasing to US$10,200 million. Adjusted current liabilities grew from US$1,883 million in 2020 to US$2,831 million in 2022, then decreased to US$2,414 million in 2023. A significant increase is observed in 2024, reaching US$4,390 million, followed by a decrease to US$3,295 million in 2025.

Growth Rates

The largest year-over-year increase in current liabilities occurred between 2021 and 2022, with a growth of approximately 17.2%. The largest year-over-year increase in adjusted current liabilities occurred between 2023 and 2024, with a growth of approximately 81.7%. The decrease in current liabilities from 2024 to 2025 was approximately 2.8%, while the decrease in adjusted current liabilities was approximately 25.1%.

Relationship Between Metrics

Adjusted current liabilities consistently represent a smaller portion of total current liabilities throughout the observed period. In 2020, adjusted current liabilities were approximately 34.2% of total current liabilities. This percentage fluctuated, reaching a high of approximately 34.9% in 2022, and ending at approximately 32.3% in 2025. The substantial increase in adjusted current liabilities in 2024 suggests a significant reclassification or adjustment of short-term obligations.

The divergence between the trends of current liabilities and adjusted current liabilities indicates that the composition of short-term obligations is changing. The substantial increase in adjusted current liabilities in 2024, followed by a decrease in 2025, warrants further investigation to understand the underlying drivers of these adjustments.

Total liabilities exhibited a generally increasing trend from November 27, 2020, through November 29, 2024, before continuing to rise through November 28, 2025. However, adjusted total liabilities present a more nuanced pattern, diverging significantly from the reported total liabilities, particularly in later periods.

Overall Trends in Total Liabilities

Total liabilities increased from US$11,020 million in 2020 to US$17,873 million in 2025, representing a 62.2% increase over the five-year period. The most substantial year-over-year increase occurred between 2023 and 2024, with a rise of US$2,864 million. Growth was more moderate in the preceding years.

Trends in Adjusted Total Liabilities

Adjusted total liabilities showed a more subdued growth pattern initially, increasing from US$7,251 million in 2020 to US$7,672 million in 2022. A decrease was observed in 2023, falling to US$7,296 million. Subsequently, adjusted total liabilities increased significantly, reaching US$9,835 million in 2024 and US$10,812 million in 2025. This recent acceleration suggests a change in the composition or categorization of liabilities requiring adjustment.

Relationship Between Total and Adjusted Liabilities

The difference between total liabilities and adjusted total liabilities widened considerably from 2020 to 2025. In 2020, the difference was US$3,769 million. By 2025, this difference had grown to US$7,061 million. This increasing disparity indicates that a growing portion of reported total liabilities is being adjusted, suggesting potential reclassifications, changes in accounting treatment, or the elimination of certain liability items through the adjustment process. The magnitude of these adjustments appears to be increasing over time.

The divergence between the two liability measures warrants further investigation to understand the nature of the adjustments being made and their impact on the company’s financial position. The substantial increase in both total and adjusted liabilities in the later years, coupled with the widening gap between them, suggests evolving financial structures or reporting practices.

Stockholders’ equity and adjusted stockholders’ equity both demonstrate fluctuating values over the observed period. While both metrics generally trend upward initially, a notable divergence and subsequent decline are apparent in later years.

Overall Trend - Stockholders’ Equity

Stockholders’ equity increased from US$13,264 million in 2020 to US$14,797 million in 2021, representing a growth of approximately 11.6%. A decrease followed in 2022, with equity falling to US$14,051 million. A significant increase was then observed in 2023, reaching US$16,518 million. However, this was followed by a decline to US$14,105 million in 2024 and a further substantial decrease to US$11,623 million in 2025.

Overall Trend - Adjusted Stockholders’ Equity

Adjusted stockholders’ equity exhibited a more consistent upward trend from 2020 to 2023. It rose from US$15,684 million in 2020 to US$18,611 million in 2021 (approximately 18.6% growth), continued to US$18,739 million in 2022, and reached US$21,308 million in 2023. Similar to stockholders’ equity, adjusted equity then decreased to US$18,752 million in 2024 and US$16,511 million in 2025.

Relationship Between Metrics

The difference between adjusted and unadjusted stockholders’ equity remained relatively stable between 2020 and 2022, fluctuating around US$2,400 million. However, the gap widened considerably in 2023, reaching approximately US$4,800 million, suggesting a significant adjustment was made. This difference narrowed again in 2024 and 2025, but remained larger than in the earlier period.

Recent Performance (2024-2025)

Both stockholders’ equity and adjusted stockholders’ equity experienced declines in both 2024 and 2025. The decrease from 2023 to 2025 is particularly pronounced for stockholders’ equity, falling by approximately 29.6%. Adjusted stockholders’ equity also decreased, but to a lesser extent, with a decline of approximately 22.5% over the same period. These recent declines warrant further investigation to determine the underlying causes.

Over the observed period, significant fluctuations are present in both reported and adjusted financial figures. Total reported debt generally remained stable between 2020 and 2022, before decreasing in 2023 and then increasing substantially in 2024 and 2025. Stockholders’ equity exhibited growth from 2020 to 2023, followed by declines in both 2024 and 2025. Consequently, total reported capital mirrored these trends, peaking in 2023 before receding in subsequent years.

Debt Trends

Reported total debt remained relatively consistent around US$4.1 billion from 2020 to 2022. A decrease to US$3.634 billion was noted in 2023, but this was reversed with a considerable increase to US$5.628 billion in 2024 and further to US$6.210 billion in 2025. Adjusted total debt followed a similar pattern, though consistently higher than the reported figures. The adjusted debt also shows the same pattern of stability, a dip in 2023, and then substantial increases in 2024 and 2025.

Equity Trends

Stockholders’ equity increased from US$13.264 billion in 2020 to US$16.518 billion in 2023. However, a decline was observed in 2024, falling to US$14.105 billion, and continued in 2025 to US$11.623 billion. Adjusted stockholders’ equity demonstrated a more pronounced growth trajectory from 2020 to 2023, reaching US$21.308 billion, before experiencing similar declines in 2024 and 2025, ending at US$16.511 billion.

Capital Structure

Total reported capital increased from US$17.381 billion in 2020 to US$20.152 billion in 2023, then decreased to US$19.733 billion in 2024 and US$17.833 billion in 2025. Adjusted total capital exhibited a similar trend, with a peak in 2023 at US$25.388 billion, followed by declines in 2024 and 2025 to US$24.808 billion and US$23.159 billion respectively. The adjusted capital consistently exceeds the reported capital throughout the period.

The divergence between reported and adjusted figures suggests the presence of accounting adjustments impacting the capitalization structure. The increases in both reported and adjusted debt in 2024 and 2025, coupled with the concurrent declines in stockholders’ equity, indicate a potential shift towards increased leverage. Further investigation into the nature of these adjustments and the reasons behind the capital structure changes would be warranted.

Revenue and adjusted revenue both demonstrate a consistent upward trend over the observed six-year period. While both metrics increase annually, adjusted revenue consistently exceeds reported revenue, indicating the presence of adjustments that positively impact the final revenue figure.

Overall Growth

Reported revenue increased from US$12,868 million in 2020 to US$23,769 million in 2025, representing a growth of approximately 84.8%. Adjusted revenue experienced a similar growth pattern, rising from US$13,126 million in 2020 to US$24,540 million in 2025, a growth of approximately 87.1%.

Year-over-Year Growth

The year-over-year growth rate for reported revenue fluctuates. The largest increase occurred between 2020 and 2021 (approximately 22.7%), while the smallest increase was observed between 2023 and 2024 (approximately 10.8%). Adjusted revenue exhibits a similar pattern, with the most substantial growth between 2020 and 2021 (approximately 28.8%) and the least substantial growth between 2023 and 2024 (approximately 10.4%).

Adjustment Impact

The difference between reported revenue and adjusted revenue varies annually. In 2020, adjusted revenue exceeded reported revenue by US$258 million. This difference increased to US$771 million in 2025. This suggests that the magnitude of adjustments applied to revenue is also increasing over time. The adjustments consistently contribute to a higher revenue figure.

The consistent positive adjustments to revenue warrant further investigation to understand the nature of these adjustments and their underlying drivers. The increasing difference between reported and adjusted revenue suggests a growing impact from these adjustments on the overall financial performance.

The reported net income demonstrates fluctuations over the observed period. Initially, a decrease is noted between 2020 and 2021, followed by a slight decline from 2021 to 2022. A subsequent increase occurs between 2022 and 2023, and this upward trajectory continues into 2024 and 2025, with the most substantial year-over-year growth occurring between 2024 and 2025.

Net Income Trend

Net income decreased from US$5,260 million in 2020 to US$4,822 million in 2021, representing a decline of approximately 8.4%. A further decrease to US$4,756 million was observed in 2022. However, net income rebounded to US$5,428 million in 2023, and continued to rise to US$5,560 million in 2024. The most significant increase occurred in 2025, reaching US$7,130 million.

Adjusted Net Income Trend

Adjusted net income exhibits a different pattern. A substantial increase is seen from 2020 to 2021, moving from US$4,055 million to US$6,149 million. While a decrease is observed in 2022 to US$5,469 million, it remains above the 2020 level. The adjusted net income remains relatively stable between 2022 and 2024, with minor fluctuations. Similar to reported net income, a significant increase is observed in 2025, reaching US$7,342 million.

The divergence between reported and adjusted net income suggests the presence of non-recurring or unusual items impacting the reported figures. The substantial increase in adjusted net income in 2021, exceeding the reported net income change, indicates a significant negative impact on reported net income during that year which was excluded from the adjusted figure. The relatively consistent adjusted net income from 2022 to 2024, despite fluctuations in reported net income, further supports this observation. The parallel increases in both reported and adjusted net income in 2025 suggest a broad-based improvement in underlying business performance.

Relationship Between Reported and Adjusted Net Income

The difference between reported and adjusted net income varies considerably across the period. In 2021, adjusted net income significantly exceeded reported net income by US$1,327 million. This difference narrowed in subsequent years, but remains positive throughout the period, indicating that adjustments consistently add back to the reported net income. The increasing gap in 2025 suggests a continued positive impact from these adjustments.