Analysis of Geographic Areas
Adobe Inc. operates in 3 regions: Americas; Europe, Middle East and Africa (EMEA); and Asia-Pacific (APAC).
Area Asset Turnover
Adobe Inc., asset turnover by geographic area
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | |
|---|---|---|---|---|---|---|
| Americas | 7.80 | 6.69 | 6.06 | 6.07 | 5.60 | 5.76 |
| Europe, Middle East and Africa (EMEA) | 64.58 | 56.10 | 66.57 | 67.49 | 53.13 | 54.70 |
| Asia-Pacific (APAC) | 15.45 | 14.23 | 18.66 | 19.67 | 16.37 | 15.44 |
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).
The analysis of the annual geographic area asset turnover ratios reveals distinctive trends across the Americas, Europe, Middle East and Africa (EMEA), and Asia-Pacific (APAC) regions over the six-year period.
- Americas
- The asset turnover ratio in the Americas region shows moderate fluctuations with an overall upward trend. Beginning at 5.76 in 2019, it slightly decreased to 5.60 in 2020, then steadily increased to 6.07 in 2021 and remained stable around 6.06 in 2022. A notable increase follows with ratios reaching 6.69 in 2023 and culminating at 7.80 in 2024. This progression indicates improving efficiency in asset utilization within this region, particularly pronounced in the last two years.
- Europe, Middle East and Africa (EMEA)
- The EMEA region reports significantly higher asset turnover ratios compared to other regions, though it exhibits more volatility. Starting at 54.70 in 2019, there is a slight decline to 53.13 in 2020, after which a substantial increase peaks at 67.49 in 2021. The ratio slightly declines to 66.57 in 2022, decreases further to 56.10 in 2023, then rebounds to 64.58 in 2024. These fluctuations suggest varying operational dynamics or asset base changes, yet the ratios remain considerably higher, reflecting strong asset turnover relative to other regions.
- Asia-Pacific (APAC)
- The APAC region demonstrates more moderate ratios with relative stability and minor fluctuations. The ratio starts at 15.44 in 2019, rises to 16.37 in 2020, followed by an increase to 19.67 in 2021, indicating improved asset use. However, subsequent decreases are observed, dropping to 18.66 in 2022, further declining to 14.23 in 2023, and slightly improving to 15.45 in 2024. This pattern suggests intermittent challenges or changes impacting asset turnover performance.
In summary, the Americas region shows a steady improvement with a sharper rise towards the end of the period. The EMEA region exhibits high but volatile turnover ratios, indicating dynamic operational changes or asset adjustments. The APAC region displays moderate turnover with some instability in the latter years, suggesting variable operational efficiency or market conditions influencing asset use. Across all regions, the data highlights the importance of monitoring regional performance nuances to understand asset utilization efficiency comprehensively.
Area Asset Turnover: Americas
Adobe Inc.; Americas; area asset turnover calculation
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 12,891) | 11,654) | 10,251) | 8,996) | 7,454) | 6,506) |
| Property and equipment, net | 1,652) | 1,741) | 1,691) | 1,481) | 1,330) | 1,129) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 7.80 | 6.69 | 6.06 | 6.07 | 5.60 | 5.76 |
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= 12,891 ÷ 1,652 = 7.80
- Revenue
- The revenue in the Americas geographic area exhibited a consistent upward trend over the six-year period. Starting at $6,506 million in 2019, revenue increased steadily each year, reaching $12,891 million by 2024. The growth appears to accelerate particularly after 2020, with the largest annual increments observed between 2021 and 2024, indicating strong market expansion or increased sales activity in this region.
- Property and Equipment, Net
- The net value of property and equipment showed a gradual increase from $1,129 million in 2019 to a peak of $1,741 million in 2023. However, there was a slight decline in 2024, falling to $1,652 million. Overall, the upward trend suggests ongoing investment in physical assets, although the dip in the final year might indicate asset disposals, depreciation effects, or a strategic shift in capital allocation.
- Area Asset Turnover
- The area asset turnover ratio demonstrates an improving efficiency in the utilization of assets in generating revenue over time. The ratio remained relatively steady around the mid-5 to low-6 range from 2019 to 2022 but showed a marked increase in the last two years, reaching 7.8 in 2024. This upward trend implies better asset management or higher sales productivity relative to the asset base.
Area Asset Turnover: Europe, Middle East and Africa (EMEA)
Adobe Inc.; Europe, Middle East and Africa (EMEA); area asset turnover calculation
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 5,554) | 4,881) | 4,593) | 4,252) | 3,400) | 2,975) |
| Property and equipment, net | 86) | 87) | 69) | 63) | 64) | 54) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 64.58 | 56.10 | 66.57 | 67.49 | 53.13 | 54.70 |
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= 5,554 ÷ 86 = 64.58
- Revenue
- The revenue in the Europe, Middle East and Africa (EMEA) region has exhibited consistent growth over the six-year period. Starting at $2,975 million in 2019, the revenue increased to $5,554 million by 2024, representing an overall growth rate of approximately 87%. The largest annual increase occurred between 2023 and 2024, with revenue growing from $4,881 million to $5,554 million. The upward trend indicates a robust expansion in the company's earnings within this geographical area.
- Property and equipment, net
- The net value of property and equipment shows a gradual increase over the period. Beginning at $54 million in 2019, it rose steadily to $86 million in 2024. Notably, the largest jump occurred between 2021 and 2023, from $63 million to $87 million, before a slight decrease to $86 million in 2024. This pattern suggests ongoing investment in physical assets, possibly to support operational growth or infrastructure enhancements.
- Area asset turnover
- The area asset turnover ratio, which reflects the efficiency of asset utilization in generating revenue, exhibits some fluctuations but maintains a generally high level. The ratio decreased slightly from 54.7 in 2019 to 53.13 in 2020, then increased significantly to a peak of 67.49 in 2021. It stayed relatively stable in 2022 at 66.57, dropped to 56.1 in 2023, and rebounded to 64.58 in 2024. These variations indicate changes in how effectively assets were employed to generate sales, with occasional declines possibly due to higher asset bases or operational changes, followed by recovery in efficiency.
Area Asset Turnover: Asia-Pacific (APAC)
Adobe Inc.; Asia-Pacific (APAC); area asset turnover calculation
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 3,060) | 2,874) | 2,762) | 2,537) | 2,014) | 1,690) |
| Property and equipment, net | 198) | 202) | 148) | 129) | 123) | 109) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 15.45 | 14.23 | 18.66 | 19.67 | 16.37 | 15.44 |
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= 3,060 ÷ 198 = 15.45
- Revenue
- The revenue in the Asia-Pacific region shows a consistent upward trend over the six-year period. Starting at $1,690 million in 2019, it increased each year, reaching $3,060 million by 2024. This represents an overall growth of approximately 81% from the beginning to the end of the period, indicating sustained expansion in sales or service delivery in this geographic area.
- Property and Equipment, Net
- The net value of property and equipment also shows an increasing trend, rising from $109 million in 2019 to a peak of $202 million in 2023 before slightly declining to $198 million in 2024. The growth in these assets through the years suggests continuous investment in physical infrastructure or equipment, potentially to support the expanding business operations in the region.
- Area Asset Turnover Ratio
- This ratio, which measures the efficiency of asset utilization in generating revenue, exhibits variability over the period. It increased from 15.44 in 2019 to a high of 19.67 in 2021, indicating improving efficiency in the initial years. However, there was a decline to 14.23 in 2023, followed by a modest recovery to 15.45 in 2024. This fluctuation suggests that while assets were being expanded, the rate at which revenue was generated per asset unit faced some inefficiencies or slower growth in recent years.
- Overall Analysis
- The Asia-Pacific segment demonstrates robust revenue growth supported by increasing investment in property and equipment. Despite these investments, the asset turnover ratio's decline in the later years signals a potential dilution in asset efficiency, which could warrant further operational or strategic review. The rise in net property and equipment alongside revenue growth reflects confidence in the region's market potential, but maintaining or improving asset utilization efficiency may be critical for sustainable profitability.
Revenue
Adobe Inc., revenue by geographic area
US$ in millions
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | |
|---|---|---|---|---|---|---|
| United States | 11,499) | 10,460) | 9,217) | 8,104) | 6,746) | 5,904) |
| Other | 1,392) | 1,194) | 1,034) | 892) | 708) | 602) |
| Americas | 12,891) | 11,654) | 10,251) | 8,996) | 7,454) | 6,506) |
| Europe, Middle East and Africa (EMEA) | 5,554) | 4,881) | 4,593) | 4,252) | 3,400) | 2,975) |
| Asia-Pacific (APAC) | 3,060) | 2,874) | 2,762) | 2,537) | 2,014) | 1,690) |
| Total | 21,505) | 19,409) | 17,606) | 15,785) | 12,868) | 11,171) |
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).
The revenue data across various geographic areas over the observed periods exhibits a consistent upward trajectory. This trend indicates steady growth in all reported regions, with varying rates of increase.
- United States
- Revenues in the United States show a strong and continuous increase year over year, rising from $5,904 million in 2019 to $11,499 million in 2024. This growth reflects the largest absolute increase among all regions, suggesting a robust and expanding market presence domestically.
- Other Regions within Americas
- The "Other" category within the Americas also displays steady revenue growth, increasing from $602 million in 2019 to $1,392 million in 2024. This consistent rise supports the overarching growth trend in the Americas.
- Americas Total
- Total revenue from the Americas, comprising the United States and other parts, rose from $6,506 million in 2019 to $12,891 million in 2024. This near doubling of revenue over six years underscores the Americas as a critical driver of overall revenue growth.
- Europe, Middle East, and Africa (EMEA)
- The EMEA region records steady annual increases, progressing from $2,975 million in 2019 to $5,554 million in 2024. Although the total revenue in this region is lower than in the Americas, the growth rate remains positive and consistent.
- Asia-Pacific (APAC)
- Revenue in the APAC region rises from $1,690 million in 2019 to $3,060 million in 2024. While the absolute figures remain smallest among the major regions, the data suggest persistent expansion and potential for further market development.
- Total Revenue
- The aggregate revenue across all regions increased from $11,171 million in 2019 to $21,505 million in 2024. This signifies almost a doubling of total revenue within the six-year span, driven primarily by strong growth in the Americas, complemented by steady increases in EMEA and APAC.
Overall, the data reveal healthy and broad-based revenue growth across all geographic segments, with the United States and the wider Americas region contributing the largest share. The consistent upward movement in all regions highlights a geographically diversified expansion, supporting sustained financial performance.
Property and equipment, net
Adobe Inc., property and equipment, net by geographic area
US$ in millions
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | |
|---|---|---|---|---|---|---|
| United States | 1,651) | 1,740) | 1,690) | 1,480) | 1,328) | 1,126) |
| Other | 1) | 1) | 1) | 1) | 2) | 3) |
| Americas | 1,652) | 1,741) | 1,691) | 1,481) | 1,330) | 1,129) |
| Europe, Middle East and Africa (EMEA) | 86) | 87) | 69) | 63) | 64) | 54) |
| Asia-Pacific (APAC) | 198) | 202) | 148) | 129) | 123) | 109) |
| Total | 1,936) | 2,030) | 1,908) | 1,673) | 1,517) | 1,293) |
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).
The analysis of the annual property and equipment net values by geographic area reveals distinct trends over the six-year period.
- United States
- The net property and equipment value in the United States showed a steady and consistent increase from 2019 to 2023, rising from 1,126 million USD to a peak of 1,740 million USD. However, in 2024, a decline was observed, with the value decreasing to 1,651 million USD. This indicates a strong growth trajectory over most years, followed by a moderate contraction in the latest year.
- Other
- The 'Other' category maintained very low and largely stable values throughout the period, fluctuating slightly but remaining close to 1-3 million USD. This segment's contribution is minimal and shows no significant trend.
- Americas
- The Americas region, combining the United States and Other categories, mirrored closely the United States trend, with an overall increase from 1,129 million USD in 2019 to a high of 1,741 million USD in 2023, followed by a slight decline to 1,652 million USD in 2024. This suggests that the United States dominates the Americas' figures, controlling the trend direction.
- Europe, Middle East and Africa (EMEA)
- The EMEA region exhibited moderate growth over the period, increasing from 54 million USD in 2019 to 87 million USD in 2023, before a minor decrease to 86 million USD in 2024. The values show relatively small absolute changes but indicate a steady upward trend with minor fluctuations towards the end.
- Asia-Pacific (APAC)
- The APAC region experienced consistent growth with a notable acceleration in later years. Starting at 109 million USD in 2019, the value rose steadily to 148 million USD in 2022, then sharply increased to 202 million USD in 2023, followed by a small decrease to 198 million USD in 2024. This pattern suggests expansion efforts or investments intensifying in recent years, stabilizing slightly at a high level.
- Total
- The total net property and equipment value across all regions increased significantly from 1,293 million USD in 2019 to 2,030 million USD in 2023, representing substantial growth. In 2024, a slight reduction to 1,936 million USD occurred, reflecting the declines in the United States and the Americas regions, slightly offset by stability or minor decreases in other areas.
Overall, the data indicates a general upward trend in net property and equipment values over the six-year period, with the most significant growth driven by the United States and Asia-Pacific regions. The minor decline in the most recent year may suggest a shift in investment focus or asset revaluation, warranting further investigation.