Stock Analysis on Net
Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Adobe Inc., adjusted financial ratios

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Activity Ratio
Total Asset Turnover
Reported 0.65 0.65 0.58 0.53 0.54 0.48
Adjusted 0.70 0.69 0.65 0.57 0.54 0.50
Liquidity Ratio
Current Ratio
Reported 1.34 1.11 1.25 1.48 0.79 1.13
Adjusted 4.60 3.19 3.95 4.34 1.35 3.52
Solvency Ratios
Debt to Equity
Reported 0.22 0.29 0.28 0.31 0.39 0.44
Adjusted 0.19 0.25 0.25 0.30 0.33 0.38
Debt to Capital
Reported 0.18 0.23 0.22 0.24 0.28 0.31
Adjusted 0.16 0.20 0.20 0.23 0.25 0.27
Financial Leverage
Reported 1.80 1.93 1.84 1.83 1.97 2.00
Adjusted 1.34 1.41 1.41 1.46 1.51 1.55
Profitability Ratios
Net Profit Margin
Reported 27.97% 27.01% 30.55% 40.88% 26.42% 28.69%
Adjusted 27.79% 30.15% 36.38% 30.89% 28.90% 27.66%
Return on Equity (ROE)
Reported 32.86% 33.85% 32.59% 39.66% 28.03% 27.67%
Adjusted 26.01% 29.19% 33.04% 25.85% 23.68% 21.26%
Return on Assets (ROA)
Reported 18.23% 17.51% 17.70% 21.66% 14.22% 13.80%
Adjusted 19.38% 20.71% 23.49% 17.68% 15.71% 13.70%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Adobe Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Adobe Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Adobe Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Adobe Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Adobe Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Adobe Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Adobe Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Adobe Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Adobe Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Reported
Selected Financial Data (US$ in millions)
Revenue 19,409 17,606 15,785 12,868 11,171 9,030
Total assets 29,779 27,165 27,241 24,284 20,762 18,769
Activity Ratio
Total asset turnover1 0.65 0.65 0.58 0.53 0.54 0.48
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenue2 19,945 18,142 16,904 13,126 11,618 9,589
Adjusted total assets3 28,604 26,411 26,172 22,935 21,369 19,353
Activity Ratio
Adjusted total asset turnover4 0.70 0.69 0.65 0.57 0.54 0.50

Based on: 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).

1 2023 Calculation
Total asset turnover = Revenue ÷ Total assets
= 19,409 ÷ 29,779 = 0.65

2 Adjusted revenue. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted total asset turnover = Adjusted revenue ÷ Adjusted total assets
= 19,945 ÷ 28,604 = 0.70

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Adobe Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Reported
Selected Financial Data (US$ in millions)
Current assets 11,084 8,996 8,669 8,146 6,495 4,857
Current liabilities 8,251 8,128 6,932 5,512 8,191 4,301
Liquidity Ratio
Current ratio1 1.34 1.11 1.25 1.48 0.79 1.13
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 11,100 9,019 8,685 8,167 6,505 4,872
Adjusted current liabilities3 2,414 2,831 2,199 1,883 4,813 1,385
Liquidity Ratio
Adjusted current ratio4 4.60 3.19 3.95 4.34 1.35 3.52

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,084 ÷ 8,251 = 1.34

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 11,100 ÷ 2,414 = 4.60

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Adobe Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 3,634 4,129 4,123 4,117 4,138 4,125
Stockholders’ equity 16,518 14,051 14,797 13,264 10,530 9,362
Solvency Ratio
Debt to equity1 0.22 0.29 0.28 0.31 0.39 0.44
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 4,080 4,633 4,673 4,708 4,736 4,694
Adjusted stockholders’ equity3 21,308 18,739 18,611 15,684 14,181 12,477
Solvency Ratio
Adjusted debt to equity4 0.19 0.25 0.25 0.30 0.33 0.38

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 3,634 ÷ 16,518 = 0.22

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 4,080 ÷ 21,308 = 0.19

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Adobe Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 3,634 4,129 4,123 4,117 4,138 4,125
Total capital 20,152 18,180 18,920 17,381 14,668 13,487
Solvency Ratio
Debt to capital1 0.18 0.23 0.22 0.24 0.28 0.31
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 4,080 4,633 4,673 4,708 4,736 4,694
Adjusted total capital3 25,388 23,372 23,284 20,392 18,917 17,172
Solvency Ratio
Adjusted debt to capital4 0.16 0.20 0.20 0.23 0.25 0.27

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 3,634 ÷ 20,152 = 0.18

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 4,080 ÷ 25,388 = 0.16

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Adobe Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Reported
Selected Financial Data (US$ in millions)
Total assets 29,779 27,165 27,241 24,284 20,762 18,769
Stockholders’ equity 16,518 14,051 14,797 13,264 10,530 9,362
Solvency Ratio
Financial leverage1 1.80 1.93 1.84 1.83 1.97 2.00
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 28,604 26,411 26,172 22,935 21,369 19,353
Adjusted stockholders’ equity3 21,308 18,739 18,611 15,684 14,181 12,477
Solvency Ratio
Adjusted financial leverage4 1.34 1.41 1.41 1.46 1.51 1.55

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 29,779 ÷ 16,518 = 1.80

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 28,604 ÷ 21,308 = 1.34

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Adobe Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 5,428 4,756 4,822 5,260 2,951 2,591
Revenue 19,409 17,606 15,785 12,868 11,171 9,030
Profitability Ratio
Net profit margin1 27.97% 27.01% 30.55% 40.88% 26.42% 28.69%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 5,543 5,469 6,149 4,055 3,358 2,652
Adjusted revenue3 19,945 18,142 16,904 13,126 11,618 9,589
Profitability Ratio
Adjusted net profit margin4 27.79% 30.15% 36.38% 30.89% 28.90% 27.66%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 5,428 ÷ 19,409 = 27.97%

2 Adjusted net income. See details »

3 Adjusted revenue. See details »

4 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenue
= 100 × 5,543 ÷ 19,945 = 27.79%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Adobe Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 5,428 4,756 4,822 5,260 2,951 2,591
Stockholders’ equity 16,518 14,051 14,797 13,264 10,530 9,362
Profitability Ratio
ROE1 32.86% 33.85% 32.59% 39.66% 28.03% 27.67%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 5,543 5,469 6,149 4,055 3,358 2,652
Adjusted stockholders’ equity3 21,308 18,739 18,611 15,684 14,181 12,477
Profitability Ratio
Adjusted ROE4 26.01% 29.19% 33.04% 25.85% 23.68% 21.26%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 5,428 ÷ 16,518 = 32.86%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 5,543 ÷ 21,308 = 26.01%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Adobe Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018
Reported
Selected Financial Data (US$ in millions)
Net income 5,428 4,756 4,822 5,260 2,951 2,591
Total assets 29,779 27,165 27,241 24,284 20,762 18,769
Profitability Ratio
ROA1 18.23% 17.51% 17.70% 21.66% 14.22% 13.80%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 5,543 5,469 6,149 4,055 3,358 2,652
Adjusted total assets3 28,604 26,411 26,172 22,935 21,369 19,353
Profitability Ratio
Adjusted ROA4 19.38% 20.71% 23.49% 17.68% 15.71% 13.70%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 5,428 ÷ 29,779 = 18.23%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 5,543 ÷ 28,604 = 19.38%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Adobe Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.