Analysis of Profitability Ratios
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Adobe Inc., profitability ratios
Based on: 10-K (filing date: 2021-01-15), 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Adobe Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Adobe Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Adobe Inc.’s net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Adobe Inc.’s ROE improved from 2018 to 2019 and from 2019 to 2020. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Adobe Inc.’s ROA improved from 2018 to 2019 and from 2019 to 2020. |
Gross Profit Margin
Adobe Inc., gross profit margin calculation, comparison to benchmarks
| Nov 27, 2020 | Nov 29, 2019 | Nov 30, 2018 | Dec 1, 2017 | Dec 2, 2016 | Nov 27, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 11,146 | 9,499 | 7,835 | 6,291 | 5,035 | 4,051 | |
| Revenue | 12,868 | 11,171 | 9,030 | 7,302 | 5,854 | 4,796 | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 86.62% | 85.03% | 86.77% | 86.16% | 86.00% | 84.48% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Alphabet Inc. | 53.58% | 55.58% | 56.48% | 58.88% | 61.08% | — | |
| Autodesk Inc. | 90.08% | 88.87% | 85.25% | 83.17% | 85.20% | 86.38% | |
| Facebook Inc. | 80.58% | 81.94% | 83.25% | 86.58% | 86.29% | — | |
| International Business Machines Corp. | — | 47.30% | 46.41% | 45.78% | 47.92% | 49.77% | |
| Intuit Inc. | 82.05% | 82.80% | 83.62% | 84.37% | 83.98% | 82.71% | |
| Microsoft Corp. | 67.78% | 65.90% | 65.25% | 61.91% | 61.58% | 64.70% | |
| Oracle Corp. | 79.68% | 79.76% | 79.71% | 80.20% | 79.81% | 80.30% | |
| salesforce.com inc. | 75.23% | 74.02% | 73.54% | 73.38% | 75.18% | 76.01% | |
| ServiceNow Inc. | 78.16% | 76.98% | 76.13% | 74.15% | 71.33% | — | |
Based on: 10-K (filing date: 2021-01-15), 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19).
1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 11,146 ÷ 12,868 = 86.62%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Adobe Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
Operating Profit Margin
Adobe Inc., operating profit margin calculation, comparison to benchmarks
| Nov 27, 2020 | Nov 29, 2019 | Nov 30, 2018 | Dec 1, 2017 | Dec 2, 2016 | Nov 27, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 4,237 | 3,268 | 2,840 | 2,168 | 1,494 | 903 | |
| Revenue | 12,868 | 11,171 | 9,030 | 7,302 | 5,854 | 4,796 | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 32.93% | 29.25% | 31.45% | 29.69% | 25.51% | 18.83% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Alphabet Inc. | 22.59% | 21.15% | 19.24% | 23.59% | 26.27% | — | |
| Autodesk Inc. | 10.48% | -0.97% | -24.75% | -24.60% | 0.05% | 4.80% | |
| Facebook Inc. | 38.01% | 33.93% | 44.62% | 49.70% | 44.96% | — | |
| International Business Machines Corp. | — | 13.67% | 16.61% | 14.91% | 16.40% | 19.19% | |
| Intuit Inc. | 28.34% | 27.33% | 25.10% | 26.95% | 26.46% | 17.60% | |
| Microsoft Corp. | 37.03% | 34.14% | 31.77% | 24.82% | 23.65% | 19.41% | |
| Oracle Corp. | 35.57% | 34.26% | 34.34% | 33.69% | 34.02% | 36.29% | |
| salesforce.com inc. | 1.74% | 4.03% | 2.25% | 0.77% | 1.72% | -2.71% | |
| ServiceNow Inc. | 4.40% | 1.22% | -1.63% | -5.25% | -30.41% | — | |
| Operating Profit Margin, Sector | |||||||
| Software & Computer Services | — | 25.56% | 25.90% | 25.11% | 24.75% | — | |
| Operating Profit Margin, Industry | |||||||
| Technology | — | 25.96% | 27.06% | 25.45% | 24.51% | — | |
Based on: 10-K (filing date: 2021-01-15), 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19).
1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 4,237 ÷ 12,868 = 32.93%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Adobe Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Net Profit Margin
Adobe Inc., net profit margin calculation, comparison to benchmarks
| Nov 27, 2020 | Nov 29, 2019 | Nov 30, 2018 | Dec 1, 2017 | Dec 2, 2016 | Nov 27, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 5,260 | 2,951 | 2,591 | 1,694 | 1,169 | 630 | |
| Revenue | 12,868 | 11,171 | 9,030 | 7,302 | 5,854 | 4,796 | |
| Profitability Ratio | |||||||
| Net profit margin1 | 40.88% | 26.42% | 28.69% | 23.20% | 19.96% | 13.13% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Alphabet Inc. | 22.06% | 21.22% | 22.46% | 11.42% | 21.58% | — | |
| Autodesk Inc. | 6.55% | -3.14% | -27.56% | -28.66% | -13.20% | 3.26% | |
| Facebook Inc. | 33.90% | 26.15% | 39.60% | 39.20% | 36.97% | — | |
| International Business Machines Corp. | — | 12.22% | 10.97% | 7.27% | 14.86% | 16.14% | |
| Intuit Inc. | 23.78% | 22.95% | 20.31% | 18.76% | 20.86% | 8.71% | |
| Microsoft Corp. | 30.96% | 31.18% | 15.02% | 23.57% | 19.69% | 13.03% | |
| Oracle Corp. | 25.94% | 28.05% | 9.60% | 24.74% | 24.03% | 26.00% | |
| salesforce.com inc. | 0.74% | 8.36% | 1.22% | 2.14% | -0.71% | -4.89% | |
| ServiceNow Inc. | 2.62% | 18.11% | -1.02% | -7.71% | -32.49% | — | |
| Net Profit Margin, Sector | |||||||
| Software & Computer Services | — | 23.18% | 18.85% | 17.49% | 20.09% | — | |
| Net Profit Margin, Industry | |||||||
| Technology | — | 22.90% | 20.81% | 18.50% | 19.30% | — | |
Based on: 10-K (filing date: 2021-01-15), 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19).
1 2020 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 5,260 ÷ 12,868 = 40.88%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Adobe Inc.’s net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Return on Equity (ROE)
Adobe Inc., ROE calculation, comparison to benchmarks
| Nov 27, 2020 | Nov 29, 2019 | Nov 30, 2018 | Dec 1, 2017 | Dec 2, 2016 | Nov 27, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 5,260 | 2,951 | 2,591 | 1,694 | 1,169 | 630 | |
| Stockholders’ equity | 13,264 | 10,530 | 9,362 | 8,460 | 7,425 | 7,002 | |
| Profitability Ratio | |||||||
| ROE1 | 39.66% | 28.03% | 27.67% | 20.02% | 15.74% | 8.99% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Alphabet Inc. | 18.09% | 17.05% | 17.30% | 8.30% | 14.01% | — | |
| Autodesk Inc. | — | — | — | -79.35% | -20.41% | 3.69% | |
| Facebook Inc. | 22.72% | 18.29% | 26.28% | 21.43% | 17.26% | — | |
| International Business Machines Corp. | — | 45.25% | 51.96% | 32.70% | 65.07% | 92.48% | |
| Intuit Inc. | 35.76% | 41.53% | 51.44% | 71.71% | 84.32% | 15.65% | |
| Microsoft Corp. | 37.43% | 38.35% | 20.03% | 29.29% | 23.33% | 15.23% | |
| Oracle Corp. | 83.94% | 50.87% | 8.37% | 17.33% | 18.82% | 20.42% | |
| salesforce.com inc. | 0.37% | 7.11% | 1.36% | 2.40% | -0.95% | -6.61% | |
| ServiceNow Inc. | 4.18% | 29.45% | -2.40% | -25.53% | -116.76% | — | |
| ROE, Sector | |||||||
| Software & Computer Services | — | 24.78% | 19.89% | 17.21% | 19.52% | — | |
| ROE, Industry | |||||||
| Technology | — | 29.77% | 26.95% | 20.11% | 20.72% | — | |
Based on: 10-K (filing date: 2021-01-15), 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19).
1 2020 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 5,260 ÷ 13,264 = 39.66%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Adobe Inc.’s ROE improved from 2018 to 2019 and from 2019 to 2020. |
Return on Assets (ROA)
Adobe Inc., ROA calculation, comparison to benchmarks
| Nov 27, 2020 | Nov 29, 2019 | Nov 30, 2018 | Dec 1, 2017 | Dec 2, 2016 | Nov 27, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 5,260 | 2,951 | 2,591 | 1,694 | 1,169 | 630 | |
| Total assets | 24,284 | 20,762 | 18,769 | 14,536 | 12,707 | 11,726 | |
| Profitability Ratio | |||||||
| ROA1 | 21.66% | 14.22% | 13.80% | 11.65% | 9.20% | 5.37% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Alphabet Inc. | 12.60% | 12.45% | 13.20% | 6.42% | 11.63% | — | |
| Autodesk Inc. | 3.47% | -1.71% | -13.78% | -12.13% | -5.99% | 1.66% | |
| Facebook Inc. | 18.29% | 13.86% | 22.72% | 18.85% | 15.73% | — | |
| International Business Machines Corp. | — | 6.20% | 7.07% | 4.59% | 10.11% | 11.94% | |
| Intuit Inc. | 16.70% | 24.78% | 23.39% | 23.87% | 23.04% | 7.35% | |
| Microsoft Corp. | 14.70% | 13.69% | 6.40% | 8.80% | 8.67% | 6.92% | |
| Oracle Corp. | 8.78% | 10.20% | 2.79% | 6.92% | 7.93% | 8.96% | |
| salesforce.com inc. | 0.23% | 3.61% | 0.61% | 1.02% | -0.37% | -2.46% | |
| ServiceNow Inc. | 1.36% | 10.41% | -0.69% | -4.39% | -22.22% | — | |
| ROA, Sector | |||||||
| Software & Computer Services | — | 11.58% | 9.45% | 8.10% | 9.90% | — | |
| ROA, Industry | |||||||
| Technology | — | 12.84% | 11.88% | 9.15% | 10.14% | — | |
Based on: 10-K (filing date: 2021-01-15), 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19).
1 2020 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 5,260 ÷ 24,284 = 21.66%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Adobe Inc.’s ROA improved from 2018 to 2019 and from 2019 to 2020. |