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Adobe (NAS:ADBE) Piotroski F-Score

: 9 (As of Today)
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Good Sign:

Piotroski F-Score is 9, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Adobe has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Adobe's Piotroski F-Score or its related term are showing as below:

ADBE' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 7   Max: 9
Current: 9

During the past 13 years, the highest Piotroski F-Score of Adobe was 9. The lowest was 5. And the median was 7.


Adobe Piotroski F-Score Historical Data

The historical data trend for Adobe's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Adobe Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 8.00 7.00 5.00 9.00

Adobe Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 7.00 7.00 9.00 9.00

Competitive Comparison

For the Software - Infrastructure subindustry, Adobe's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Adobe Piotroski F-Score Distribution

For the Software industry and Technology sector, Adobe's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Adobe's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Nov23) TTM:Last Year (Nov22) TTM:
Net Income was 1247 + 1295 + 1403 + 1483 = $5,428 Mil.
Cash Flow from Operations was 1693 + 2139 + 1873 + 1597 = $7,302 Mil.
Revenue was 4655 + 4816 + 4890 + 5048 = $19,409 Mil.
Gross Profit was 4087 + 4244 + 4310 + 4414 = $17,055 Mil.
Average Total Assets from the begining of this year (Nov22)
to the end of this year (Nov23) was
(27165 + 26667 + 27838 + 29090 + 29779) / 5 = $28107.8 Mil.
Total Assets at the begining of this year (Nov22) was $27,165 Mil.
Long-Term Debt & Capital Lease Obligation was $4,007 Mil.
Total Current Assets was $11,084 Mil.
Total Current Liabilities was $8,251 Mil.
Net Income was 1266 + 1178 + 1136 + 1176 = $4,756 Mil.

Revenue was 4262 + 4386 + 4433 + 4525 = $17,606 Mil.
Gross Profit was 3750 + 3847 + 3887 + 3957 = $15,441 Mil.
Average Total Assets from the begining of last year (Nov21)
to the end of last year (Nov22) was
(27241 + 25976 + 26326 + 26744 + 27165) / 5 = $26690.4 Mil.
Total Assets at the begining of last year (Nov21) was $27,241 Mil.
Long-Term Debt & Capital Lease Obligation was $4,046 Mil.
Total Current Assets was $8,996 Mil.
Total Current Liabilities was $8,128 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Adobe's current Net Income (TTM) was 5,428. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Adobe's current Cash Flow from Operations (TTM) was 7,302. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Nov22)
=5428/27165
=0.19981594

ROA (Last Year)=Net Income/Total Assets (Nov21)
=4756/27241
=0.17458977

Adobe's return on assets of this year was 0.19981594. Adobe's return on assets of last year was 0.17458977. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Adobe's current Net Income (TTM) was 5,428. Adobe's current Cash Flow from Operations (TTM) was 7,302. ==> 7,302 > 5,428 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Nov23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Nov22 to Nov23
=4007/28107.8
=0.14255829

Gearing (Last Year: Nov22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Nov21 to Nov22
=4046/26690.4
=0.15159008

Adobe's gearing of this year was 0.14255829. Adobe's gearing of last year was 0.15159008. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Nov23)=Total Current Assets/Total Current Liabilities
=11084/8251
=1.34335232

Current Ratio (Last Year: Nov22)=Total Current Assets/Total Current Liabilities
=8996/8128
=1.10679134

Adobe's current ratio of this year was 1.34335232. Adobe's current ratio of last year was 1.10679134. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Adobe's number of shares in issue this year was 459. Adobe's number of shares in issue last year was 467. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=17055/19409
=0.87871606

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=15441/17606
=0.87703056

Adobe's gross margin of this year was 0.87871606. Adobe's gross margin of last year was 0.87703056. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Nov22)
=19409/27165
=0.71448555

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Nov21)
=17606/27241
=0.6463052

Adobe's asset turnover of this year was 0.71448555. Adobe's asset turnover of last year was 0.6463052. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+1+1+1
=9

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Adobe has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

Adobe  (NAS:ADBE) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Adobe Piotroski F-Score Related Terms

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Adobe (NAS:ADBE) Business Description

Address
345 Park Avenue, San Jose, CA, USA, 95110-2704
Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).
Executives
Mark S. Garfield officer: VP, CAO & Corp. Controller 345 PARK AVENUE, SAN JOSE CA 95110-2704
Amy Banse director 345 PARK AVENUE, SAN JOSE CA 95110
David Wadhwani officer: SVP & GM, Digital Media ADOBE INC., 345 PARK AVE, SAN JOSE CA 95110
Shantanu Narayen director, officer: President and CEO 345 PARK AVENUE, SAN JOSE CA 95110
Daniel Durn officer: EVP and CFO C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Scott Belsky officer: EVP, Chief Product Officer 345 PARK AVENUE, SAN JOSE CA 95110
Cristiano R Amon director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
John E Warnock director, other: Co-Chairman of the Board C/O ADOBE SYSTEMS INC, 345 PARK AVENUE P O BOX 2704, SAN JOSE CA 95110-2704
Dana Rao officer: EVP, Gen. Counsel & Secretary 345 PARK AVE, SAN JOSE CA 95110
Ann Lewnes officer: SVP, Chief Marketing Officer 345 PARK AVENUE, SAN JOSE CA 95110
David A Ricks director LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
M. Brett Biggs director 702 SW 8TH STREET, BENTONVILLE AR 72716
Laura Desmond director 345 PARK AVENUE, SAN JOSE CA 95110
Spencer Adam Neumann director SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Gloria Chen officer: EVP, Strategy & Growth 345 PARK AVENUE, SAN JOSE CA 95110