Stock Analysis on Net
Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

$24.99

Analysis of Long-term (Investment) Activity Ratios

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

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Long-term Activity Ratios (Summary)

Adobe Inc., long-term (investment) activity ratios

Microsoft Excel
Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
Net fixed asset turnover
Net fixed asset turnover (including operating lease, right-of-use asset)
Total asset turnover
Equity turnover

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).

Net Fixed Asset Turnover
The net fixed asset turnover ratio exhibited a generally positive trend over the observed periods. Starting at 8.64 in 2019, there was a slight decrease to 8.48 in 2020, followed by a steady increase reaching 11.11 by 2024. This indicates an improving efficiency in using fixed assets to generate revenue, with notable acceleration in recent years.
Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
When incorporating operating leases and right-of-use assets, the turnover ratio started at 8.64 in 2019 but dropped significantly to 6.42 in 2020. After this sharp decline, there was a consistent recovery and increase, reaching 9.7 in 2024. This pattern suggests the impact of lease accounting changes followed by enhanced utilization of leased and owned fixed assets over time.
Total Asset Turnover
The total asset turnover ratio demonstrated gradual growth from 0.54 in 2019 to 0.71 in 2024. The increase reflects a steadily improving capacity to generate revenue from the company’s total asset base, indicating enhanced overall asset efficiency during the reported period.
Equity Turnover
Equity turnover showed some fluctuation but an upward trajectory overall. Beginning at 1.06 in 2019, there was a decrease to 0.97 in 2020, followed by a recovery and eventual rise to 1.52 in 2024. This suggests increasing effectiveness in generating sales relative to shareholders' equity, especially notable from 2021 onward.

Net Fixed Asset Turnover

Adobe Inc., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
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
Property and equipment, net
Long-term Activity Ratio
Net fixed asset turnover1
Benchmarks
Net Fixed Asset Turnover, Competitors2
Accenture PLC
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
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.
Net Fixed Asset Turnover, Sector
Software & Services
Net Fixed Asset Turnover, Industry
Information Technology

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
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= ÷ =

2 Click competitor name to see calculations.

Revenue Trends
Revenue displayed a consistent upward trajectory from 2019 through 2024. It increased from $11,171 million in 2019 to $21,505 million in 2024, reflecting steady growth over the six-year period. The year-over-year increments were notably substantial, particularly between 2020 and 2021, and continued with strong momentum up to 2024.
Property and Equipment, Net
The net value of property and equipment showed a general increase from 2019 to 2023, rising from $1,293 million to a peak of $2,030 million. However, in 2024, there was a slight decline to $1,936 million. This suggests significant investment in fixed assets over the years, with a minor reduction or disposal in the most recent year.
Net Fixed Asset Turnover Ratio
The net fixed asset turnover ratio fluctuated but overall indicated improved efficiency in utilizing fixed assets to generate revenue. After a slight decline from 8.64 in 2019 to 8.48 in 2020, the ratio increased to 9.44 in 2021, slightly dipped to 9.23 in 2022, and then rose again through 2023 and 2024, reaching a notable 11.11. This increasing ratio in the latest years suggests enhanced asset productivity, likely driven by revenue growth outpacing fixed asset increases.
Overall Interpretation
The data reflects robust revenue growth accompanied by steady investments in property and equipment until 2023, followed by a minor reduction in asset base in 2024. The improving net fixed asset turnover ratio alongside rising revenues suggests greater operational efficiency and effective asset utilization during the period, especially in the latter years. This pattern may indicate strategic asset management and scaling of business operations leading to higher output per unit of fixed assets.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Adobe Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel
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
 
Property and equipment, net
Operating lease right-of-use assets, net
Property and equipment, net (including operating lease, right-of-use asset)
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
Accenture PLC
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
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.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Software & Services
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Information Technology

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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =

2 Click competitor name to see calculations.

Revenue Trends
The revenue shows a consistent upward trend over the six-year period. Starting at US$11,171 million in 2019, it increased annually, reaching US$21,505 million in 2024. This represents a near doubling of revenue across the time frame, indicating steady growth in the company's sales or service income.
Property and Equipment, Net
The net value of property and equipment, which includes operating lease right-of-use assets, exhibits a generally increasing trend from 2019 through 2023, rising from US$1,293 million to US$2,388 million. However, there is a slight decline in 2024 to US$2,217 million. This suggests some level of asset reduction or disposal in the most recent year after several years of incremental additions or investments.
Net Fixed Asset Turnover Ratio
The net fixed asset turnover ratio, which measures the efficiency of the company's use of its fixed assets to generate revenue, shows variability but overall improvement. It started at a high of 8.64 in 2019, decreased to 6.42 in 2020, then gradually increased in subsequent years, reaching a peak of 9.7 in 2024. The initial dip in 2020 might be due to increased asset base or pandemic-related impacts on sales, but the recovery and surpassing of prior levels by 2024 indicate enhanced effectiveness in asset utilization.
Summary of Insights
The company demonstrates strong revenue growth paired with modest increases in property and equipment until 2023, followed by a slight reduction. Improving net fixed asset turnover towards 2024 suggests that the company is becoming more efficient at generating revenue from its fixed assets despite the recent decrease in asset base. Overall, the financial pattern indicates robust operational performance and asset management over the analyzed period.

Total Asset Turnover

Adobe Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
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
Total assets
Long-term Activity Ratio
Total asset turnover1
Benchmarks
Total Asset Turnover, Competitors2
Accenture PLC
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
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.
Total Asset Turnover, Sector
Software & Services
Total Asset Turnover, Industry
Information Technology

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
Total asset turnover = Revenue ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.

Revenue
Revenue has demonstrated a consistent upward trend over the observed periods, increasing from $11,171 million in 2019 to $21,505 million in 2024. This reflects a compound growth pattern with notable increments every year, indicating strong sales growth and market expansion.
Total Assets
Total assets have also increased steadily, rising from $20,762 million in 2019 to $30,230 million in 2024. The growth rate is positive but somewhat moderate compared to revenue growth, suggesting controlled and sustainable asset expansion aligned with business scaling.
Total Asset Turnover
The total asset turnover ratio has improved over the periods, starting at 0.54 in 2019 and reaching 0.71 in 2024. This increasing ratio indicates enhanced efficiency in utilizing assets to generate revenue, reflecting better operational effectiveness and asset management.
Overall Analysis
The financial metrics collectively show strong revenue growth accompanied by steady asset accumulation and improving operational efficiency. The increase in total asset turnover ratio particularly highlights an optimized use of assets to generate higher revenues, suggesting favorable business performance and effective resource utilization over time.

Equity Turnover

Adobe Inc., equity turnover calculation, comparison to benchmarks

Microsoft Excel
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
Stockholders’ equity
Long-term Activity Ratio
Equity turnover1
Benchmarks
Equity Turnover, Competitors2
Accenture PLC
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
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.
Equity Turnover, Sector
Software & Services
Equity Turnover, Industry
Information Technology

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
Equity turnover = Revenue ÷ Stockholders’ equity
= ÷ =

2 Click competitor name to see calculations.

Revenue
Over the six-year period, revenue demonstrated a consistent upward trend, increasing from US$11,171 million to US$21,505 million. This represents a near doubling of revenue, indicating robust sales growth. Notably, the year-over-year increases accelerated particularly after 2020, with revenue growing by approximately 22.7% from 2020 to 2021 and continuing steady gains through 2024.
Stockholders’ Equity
Stockholders’ equity rose from US$10,530 million in 2019 to a peak of US$16,518 million in 2023. However, in 2024 it decreased to US$14,105 million, indicating some fluctuations after reaching its highest point. Despite the drop in the latest year, the overall trend remains positive over the period, with equity growth reflecting retention of earnings or capital increases but possibly tempered by distributions or losses in the final year.
Equity Turnover Ratio
The equity turnover ratio, which measures revenue generated per unit of equity, showed variability but generally an increasing trend. Starting at 1.06 in 2019, it slightly decreased in 2020 to 0.97, then progressively increased to 1.52 by 2024. This suggests improved efficiency in utilizing equity to generate revenue over the long term, reaching a peak efficiency in the most recent period.
Overall Insights
The company experienced strong revenue growth complemented by an increasing ability to generate sales from its equity base. The decline in equity in the final year, alongside the highest equity turnover ratio, may indicate strategic shifts such as capital restructurings or changes in asset utilization efficiency. The trends suggest effective business expansion and potentially heightened operational leverage on equity, despite some recent volatility in equity levels.