Return on Equity (ROE)
since 2005
Calculation
Adobe Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Nov 29, 2024 | 39.42% | = | 100 | × | 5,560) | ÷ | 14,105) |
| Dec 1, 2023 | 32.86% | = | 100 | × | 5,428) | ÷ | 16,518) |
| Dec 2, 2022 | 33.85% | = | 100 | × | 4,756) | ÷ | 14,051) |
| Dec 3, 2021 | 32.59% | = | 100 | × | 4,822) | ÷ | 14,797) |
| Nov 27, 2020 | 39.66% | = | 100 | × | 5,260) | ÷ | 13,264) |
| Nov 29, 2019 | 28.03% | = | 100 | × | 2,951) | ÷ | 10,530) |
| Nov 30, 2018 | 27.67% | = | 100 | × | 2,591) | ÷ | 9,362) |
| Dec 1, 2017 | 20.02% | = | 100 | × | 1,694) | ÷ | 8,460) |
| Dec 2, 2016 | 15.74% | = | 100 | × | 1,169) | ÷ | 7,425) |
| Nov 27, 2015 | 8.99% | = | 100 | × | 630) | ÷ | 7,002) |
| Nov 28, 2014 | 3.96% | = | 100 | × | 268) | ÷ | 6,776) |
| Nov 29, 2013 | 4.31% | = | 100 | × | 290) | ÷ | 6,725) |
| Nov 30, 2012 | 12.49% | = | 100 | × | 833) | ÷ | 6,665) |
| Dec 2, 2011 | 14.40% | = | 100 | × | 833) | ÷ | 5,783) |
| Dec 3, 2010 | 14.92% | = | 100 | × | 775) | ÷ | 5,192) |
| Nov 27, 2009 | 7.90% | = | 100 | × | 387) | ÷ | 4,891) |
| Nov 28, 2008 | 19.77% | = | 100 | × | 872) | ÷ | 4,410) |
| Nov 30, 2007 | 15.57% | = | 100 | × | 724) | ÷ | 4,650) |
| Dec 1, 2006 | 9.82% | = | 100 | × | 506) | ÷ | 5,152) |
| Dec 2, 2005 | 32.34% | = | 100 | × | 603) | ÷ | 1,864) |
Based on: 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), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02), 10-K (reporting date: 2015-11-27), 10-K (reporting date: 2014-11-28), 10-K (reporting date: 2013-11-29), 10-K (reporting date: 2012-11-30), 10-K (reporting date: 2011-12-02), 10-K (reporting date: 2010-12-03), 10-K (reporting date: 2009-11-27), 10-K (reporting date: 2008-11-28), 10-K (reporting date: 2007-11-30), 10-K (reporting date: 2006-12-01), 10-K (reporting date: 2005-12-02).
1 US$ in millions
- Net income
- The net income demonstrates a generally upward trend over the analyzed period, starting at $603 million in 2005 and reaching $5,560 million in 2024. Notable fluctuations occur, with a peak in 2008 at $872 million followed by a sharp decrease in 2009 to $387 million. After 2013, net income consistently grows with significant acceleration from 2016 onwards, peaking at $5,260 million in 2020. Despite a slight decline thereafter, net income remains robust above $4,700 million through 2023 and 2024.
- Stockholders' equity
- Stockholders' equity exhibits considerable variability in the early years, with a sharp increase from $1,864 million in 2005 peaking at $5,152 million in 2006, then a decline and recovery up till 2010. From 2010 onwards, equity grows steadily, increasing from $5,192 million to a peak of $16,518 million in 2023 before dropping to $14,105 million in 2024. This indicates substantial capital base expansion over the long term, with a slight correction in the most recent year.
- Return on Equity (ROE)
- ROE shows significant fluctuations. Initially, it starts at a high of 32.34% in 2005, then dips to a low of 3.96% in 2014, correlating with diminished net income growth relative to equity. Post-2014, ROE improves markedly, reaching a high of 39.66% in 2020, reflecting enhanced profitability relative to equity. This high performance level sustains through 2024 with ROE consistently above 30%, signaling effective capital utilization in recent years despite equity growth.
- Overall analysis
- The data reflects robust long-term growth in profitability as net income expanded substantially, especially after 2015. Stockholders’ equity growth supports this with a strong capital base increase, although the occasional decline in equity suggests some financial adjustments or distributions. The improvement and stabilization of ROE at high levels post-2014 underline effective management in turning equity investments into profits. Temporary declines in net income and ROE around 2009 and 2013 coincide with economic downturns and adaptation phases but were followed by recovery and growth. The financial profiles demonstrate a company that has enhanced profitability and capital efficiency while growing its equity base over nearly two decades.
Comparison to Competitors
Adobe Inc., ROE, long-term trends, comparison to competitors
| Adobe Inc. | Accenture PLC | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 29, 2024 | 39.42% | 25.68% | 22.58% | 3.88% | 22.06% | 16.07% | 32.83% | 120.26% | 9.24% | 49.86% | 6.93% | 14.83% | 25.17% | 17.09% |
| Dec 1, 2023 | 32.86% | 26.75% | 30.58% | -12.52% | 33.29% | 13.81% | 35.09% | 792.45% | 6.04% | 25.15% | 0.36% | 22.69% | 20.01% | -6.57% |
| Dec 2, 2022 | 33.85% | 31.11% | 30.93% | -22.89% | 7.47% | 12.57% | 43.68% | — | -14.57% | -127.14% | 2.48% | 6.46% | 17.85% | 0.65% |
| Dec 3, 2021 | 32.59% | 30.25% | 25.39% | -10.64% | 30.38% | 20.89% | 43.15% | 262.43% | -22.71% | -78.63% | 9.81% | 6.22% | 14.31% | -8.62% |
| Nov 27, 2020 | 39.66% | 30.05% | 23.69% | -19.10% | 27.14% | 35.76% | 37.43% | 83.94% | -76.61% | -24.23% | 0.37% | 4.18% | 13.54% | -19.33% |
| Nov 29, 2019 | 28.03% | 33.17% | 47.03% | — | 45.25% | 41.53% | 38.35% | 50.87% | — | -5.16% | 7.11% | 29.45% | 13.04% | -21.36% |
| Nov 30, 2018 | 27.67% | 39.17% | 26.84% | — | 51.96% | 51.44% | 20.03% | 8.37% | — | -15.30% | 1.36% | -2.40% | 12.43% | -20.33% |
| Dec 1, 2017 | 20.02% | 38.50% | 20.63% | — | 32.70% | 71.71% | 29.29% | 17.33% | — | -28.52% | 2.40% | -25.53% | 4.17% | -35.11% |
| Dec 2, 2016 | 15.74% | 54.42% | 27.38% | — | 65.07% | 84.32% | 23.33% | 18.82% | — | -28.60% | -0.95% | -116.76% | 8.35% | -25.52% |
| Nov 27, 2015 | 8.99% | 49.78% | 18.34% | — | 92.48% | 15.65% | 15.23% | 20.42% | — | -33.81% | -6.61% | -35.01% | 7.21% | -22.02% |
| Nov 28, 2014 | 3.96% | 51.32% | 11.92% | — | 101.30% | 29.47% | 24.59% | 23.37% | — | -48.33% | -7.64% | -41.85% | 8.48% | -14.53% |
| Nov 29, 2013 | 4.31% | 66.16% | 14.21% | — | 72.32% | 24.30% | 27.69% | 24.47% | — | -10.74% | -11.67% | -18.70% | 8.89% | -20.12% |
| Nov 30, 2012 | 12.49% | 61.59% | 48.07% | — | 88.04% | 28.86% | 25.58% | 22.85% | — | 0.32% | -0.73% | -15.34% | 7.29% | — |
| Dec 2, 2011 | 14.40% | 58.72% | 17.57% | — | 78.73% | 24.24% | 40.55% | 21.49% | — | — | 5.05% | — | 10.53% | — |
| Dec 3, 2010 | 14.92% | 62.79% | 45.74% | — | 64.36% | 20.35% | 40.63% | 19.92% | — | — | 7.73% | — | 11.29% | — |
| Nov 27, 2009 | 7.90% | 55.08% | -138.29% | — | 59.31% | 17.49% | 36.83% | 22.29% | — | — | 6.46% | — | 9.09% | — |
| Nov 28, 2008 | 19.77% | 66.59% | -1,818.25% | — | 91.60% | 23.00% | 48.73% | 23.98% | — | — | 4.06% | — | 12.43% | — |
| Nov 30, 2007 | 15.57% | 60.25% | 14.24% | — | 36.59% | 21.62% | 45.23% | 25.26% | — | — | 0.17% | — | 9.08% | — |
| Dec 1, 2006 | 9.82% | 51.38% | 8.39% | — | 33.30% | 23.99% | 31.42% | 22.52% | — | — | 14.50% | — | 2.13% | — |
| Dec 2, 2005 | 32.34% | 55.42% | 2.67% | — | 23.97% | 22.51% | 25.47% | 26.63% | — | — | 5.06% | — | -1.27% | — |
Based on: 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), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02), 10-K (reporting date: 2015-11-27), 10-K (reporting date: 2014-11-28), 10-K (reporting date: 2013-11-29), 10-K (reporting date: 2012-11-30), 10-K (reporting date: 2011-12-02), 10-K (reporting date: 2010-12-03), 10-K (reporting date: 2009-11-27), 10-K (reporting date: 2008-11-28), 10-K (reporting date: 2007-11-30), 10-K (reporting date: 2006-12-01), 10-K (reporting date: 2005-12-02).
Comparison to Sector (Software & Services)
Adobe Inc., ROE, long-term trends, comparison to sector (software & services)
| Adobe Inc. | Software & Services | |
|---|---|---|
| Nov 29, 2024 | 39.42% | 28.54% |
| Dec 1, 2023 | 32.86% | 28.47% |
| Dec 2, 2022 | 33.85% | 31.01% |
| Dec 3, 2021 | 32.59% | 36.18% |
| Nov 27, 2020 | 39.66% | 30.32% |
| Nov 29, 2019 | 28.03% | 35.70% |
| Nov 30, 2018 | 27.67% | 20.20% |
| Dec 1, 2017 | 20.02% | 23.83% |
| Dec 2, 2016 | 15.74% | 26.25% |
| Nov 27, 2015 | 8.99% | 23.04% |
| Nov 28, 2014 | 3.96% | 28.09% |
| Nov 29, 2013 | 4.31% | 31.71% |
| Nov 30, 2012 | 12.49% | 32.66% |
| Dec 2, 2011 | 14.40% | 38.82% |
| Dec 3, 2010 | 14.92% | 37.89% |
| Nov 27, 2009 | 7.90% | 35.98% |
| Nov 28, 2008 | 19.77% | 44.03% |
| Nov 30, 2007 | 15.57% | 35.48% |
| Dec 1, 2006 | 9.82% | 28.87% |
| Dec 2, 2005 | 32.34% | 24.91% |
Based on: 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), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02), 10-K (reporting date: 2015-11-27), 10-K (reporting date: 2014-11-28), 10-K (reporting date: 2013-11-29), 10-K (reporting date: 2012-11-30), 10-K (reporting date: 2011-12-02), 10-K (reporting date: 2010-12-03), 10-K (reporting date: 2009-11-27), 10-K (reporting date: 2008-11-28), 10-K (reporting date: 2007-11-30), 10-K (reporting date: 2006-12-01), 10-K (reporting date: 2005-12-02).
Comparison to Industry (Information Technology)
Adobe Inc., ROE, long-term trends, comparison to industry (information technology)
| Adobe Inc. | Information Technology | |
|---|---|---|
| Nov 29, 2024 | 39.42% | 29.38% |
| Dec 1, 2023 | 32.86% | 31.90% |
| Dec 2, 2022 | 33.85% | 39.03% |
| Dec 3, 2021 | 32.59% | 42.37% |
| Nov 27, 2020 | 39.66% | 35.70% |
| Nov 29, 2019 | 28.03% | 36.62% |
| Nov 30, 2018 | 27.67% | 30.36% |
| Dec 1, 2017 | 20.02% | 23.39% |
| Dec 2, 2016 | 15.74% | 23.35% |
| Nov 27, 2015 | 8.99% | 26.16% |
| Nov 28, 2014 | 3.96% | 25.60% |
| Nov 29, 2013 | 4.31% | 24.88% |
| Nov 30, 2012 | 12.49% | 26.23% |
| Dec 2, 2011 | 14.40% | 29.20% |
| Dec 3, 2010 | 14.92% | 27.88% |
| Nov 27, 2009 | 7.90% | 20.28% |
| Nov 28, 2008 | 19.77% | 25.66% |
| Nov 30, 2007 | 15.57% | 24.00% |
| Dec 1, 2006 | 9.82% | 22.73% |
| Dec 2, 2005 | 32.34% | 22.11% |
Based on: 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), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02), 10-K (reporting date: 2015-11-27), 10-K (reporting date: 2014-11-28), 10-K (reporting date: 2013-11-29), 10-K (reporting date: 2012-11-30), 10-K (reporting date: 2011-12-02), 10-K (reporting date: 2010-12-03), 10-K (reporting date: 2009-11-27), 10-K (reporting date: 2008-11-28), 10-K (reporting date: 2007-11-30), 10-K (reporting date: 2006-12-01), 10-K (reporting date: 2005-12-02).