Stock Analysis on Net
Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Analysis of Profitability Ratios

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

Adobe Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015
Return on Sales
Gross profit margin 86.62% 85.03% 86.77% 86.16% 86.00% 84.48%
Operating profit margin 32.93% 29.25% 31.45% 29.69% 25.51% 18.83%
Net profit margin 40.88% 26.42% 28.69% 23.20% 19.96% 13.13%
Return on Investment
Return on equity (ROE) 39.66% 28.03% 27.67% 20.02% 15.74% 8.99%
Return on assets (ROA) 21.66% 14.22% 13.80% 11.65% 9.20% 5.37%

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

Microsoft Excel LibreOffice Calc
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
Accenture PLC 31.53% 30.81% 29.91% 30.00% 29.53%
Autodesk Inc. 90.08% 88.87% 85.25% 83.17% 85.20%
Automatic Data Processing Inc. 42.12% 42.95% 41.15% 41.28% 41.37%
Fidelity National Information Services Inc. 33.49% 36.03% 33.88% 32.25% 32.55%
Fiserv Inc. 47.40% 47.88% 47.30% 46.91% 46.25%
International Business Machines Corp. 48.32% 47.30% 46.41% 45.78% 47.92%
Intuit Inc. 82.05% 82.80% 83.62% 84.37% 83.98%
Microsoft Corp. 67.78% 65.90% 65.25% 61.91% 61.58%
Oracle Corp. 79.68% 79.76% 79.71% 80.20% 79.81%
PayPal Holdings Inc. 46.62% 44.94% 46.53% 48.87% 47.42%
salesforce.com inc. 75.23% 74.02% 73.54% 73.38% 75.18%
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

Microsoft Excel LibreOffice Calc
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
Accenture PLC 14.69% 14.59% 14.04% 12.60% 13.82%
Autodesk Inc. 10.48% -0.97% -24.75% -24.60% 0.05%
Automatic Data Processing Inc. 21.53% 21.34% 18.85% 18.80% 18.77%
Fidelity National Information Services Inc. 4.40% 9.38% 17.31% 16.35% 14.05%
Fiserv Inc. 12.47% 15.79% 30.10% 26.90% 26.25%
International Business Machines Corp. 9.22% 13.67% 16.61% 14.91% 16.40%
Intuit Inc. 28.34% 27.33% 25.10% 26.95% 26.46%
Mastercard Inc. 52.81% 57.24% 48.71% 52.99% 53.46%
Microsoft Corp. 37.03% 34.14% 31.77% 24.82% 23.65%
Oracle Corp. 35.57% 34.26% 34.34% 33.69% 34.02%
PayPal Holdings Inc. 15.33% 15.30% 14.20% 16.24% 14.63%
salesforce.com inc. 1.74% 4.03% 2.25% 0.77% 1.72%
ServiceNow Inc. 4.40% 1.22% -1.63% -5.25% -30.41%
Visa Inc. 64.46% 65.29% 62.86% 66.15% 52.27%
Operating Profit Margin, Sector
Software & Services 26.54% 26.97% 26.30% 23.78% 22.81%
Operating Profit Margin, Industry
Information Technology 25.78% 26.62% 27.30% 24.93% 23.63%

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

Microsoft Excel LibreOffice Calc
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
Accenture PLC 11.52% 11.06% 9.76% 9.37% 11.82%
Autodesk Inc. 6.55% -3.14% -27.56% -28.66% -13.20%
Automatic Data Processing Inc. 16.91% 16.17% 12.16% 14.00% 12.79%
Fidelity National Information Services Inc. 1.26% 2.88% 10.04% 14.46% 6.15%
Fiserv Inc. 6.45% 8.77% 20.38% 21.88% 16.89%
International Business Machines Corp. 7.59% 12.22% 10.97% 7.27% 14.86%
Intuit Inc. 23.78% 22.95% 20.31% 18.76% 20.86%
Mastercard Inc. 41.90% 48.08% 39.19% 31.33% 37.67%
Microsoft Corp. 30.96% 31.18% 15.02% 23.57% 19.69%
Oracle Corp. 25.94% 28.05% 9.60% 24.74% 24.03%
PayPal Holdings Inc. 19.59% 13.84% 13.31% 13.71% 12.92%
salesforce.com inc. 0.74% 8.36% 1.22% 2.14% -0.71%
ServiceNow Inc. 2.62% 18.11% -1.02% -7.71% -32.49%
Visa Inc. 49.74% 52.57% 49.98% 36.49% 39.72%
Net Profit Margin, Sector
Software & Services 21.91% 23.32% 15.36% 17.24% 17.88%
Net Profit Margin, Industry
Information Technology 21.95% 22.94% 19.47% 18.48% 18.28%

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

Microsoft Excel LibreOffice Calc
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
Accenture PLC 30.05% 33.17% 39.17% 38.50% 54.42%
Autodesk Inc. -79.35% -20.41%
Automatic Data Processing Inc. 42.88% 42.46% 46.85% 43.59% 33.30%
Fidelity National Information Services Inc. 0.32% 0.60% 8.28% 12.17% 5.83%
Fiserv Inc. 2.96% 2.71% 51.77% 45.62% 36.60%
International Business Machines Corp. 27.14% 45.25% 51.96% 32.70% 65.07%
Intuit Inc. 35.76% 41.53% 51.44% 71.71% 84.32%
Mastercard Inc. 100.31% 137.76% 108.60% 71.60% 71.76%
Microsoft Corp. 37.43% 38.35% 20.03% 29.29% 23.33%
Oracle Corp. 83.94% 50.87% 8.37% 17.33% 18.82%
PayPal Holdings Inc. 20.99% 14.56% 13.37% 11.22% 9.52%
salesforce.com inc. 0.37% 7.11% 1.36% 2.40% -0.95%
ServiceNow Inc. 4.18% 29.45% -2.40% -25.53% -116.76%
Visa Inc. 30.01% 34.83% 30.29% 20.45% 18.20%
ROE, Sector
Software & Services 26.20% 28.78% 23.51% 24.08% 24.90%
ROE, Industry
Information Technology 32.11% 33.34% 31.07% 23.72% 23.14%

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
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

Microsoft Excel LibreOffice Calc
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
Accenture PLC 13.78% 16.04% 16.61% 15.18% 19.95%
Autodesk Inc. 3.47% -1.71% -13.78% -12.13% -5.99%
Automatic Data Processing Inc. 6.30% 5.47% 4.37% 4.66% 3.42%
Fidelity National Information Services Inc. 0.19% 0.36% 3.56% 5.38% 2.18%
Fiserv Inc. 1.28% 1.15% 10.54% 12.11% 9.55%
International Business Machines Corp. 3.58% 6.20% 7.07% 4.59% 10.11%
Intuit Inc. 16.70% 24.78% 23.39% 23.87% 23.04%
Mastercard Inc. 19.09% 27.77% 23.57% 18.36% 21.73%
Microsoft Corp. 14.70% 13.69% 6.40% 8.80% 8.67%
Oracle Corp. 8.78% 10.20% 2.79% 6.92% 7.93%
PayPal Holdings Inc. 5.97% 4.79% 4.75% 4.40% 4.23%
salesforce.com inc. 0.23% 3.61% 0.61% 1.02% -0.37%
ServiceNow Inc. 1.36% 10.41% -0.69% -4.39% -22.22%
Visa Inc. 13.43% 16.65% 14.88% 9.85% 9.36%
ROA, Sector
Software & Services 8.90% 9.66% 7.24% 7.60% 8.49%
ROA, Industry
Information Technology 11.21% 11.86% 10.97% 9.02% 9.47%

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.