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Adobe (NAS:ADBE) Profitability Rank

: 10 (As of Feb. 2023)
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Adobe has the Profitability Rank of 10. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Adobe's Operating Margin % for the quarter that ended in Feb. 2023 was 34.07%. As of today, Adobe's Piotroski F-Score is 7.


Competitive Comparison

For the Software - Infrastructure subindustry, Adobe's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank Distribution

For the Software industry and Technology sector, Adobe's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Adobe's Profitability Rank falls in comparison to its industry or sector. The grey bar indicates the Profitability Rank's extreme value range as defined by GuruFocus.



Adobe Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Adobe has the Profitability Rank of 10. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Adobe's Operating Margin % for the quarter that ended in Feb. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Feb. 2023 ) / Revenue (Q: Feb. 2023 )
=1586 / 4655
=34.07 %

* 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.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Adobe has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Adobe Inc operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


Adobe Profitability Rank Related Terms

Thank you for viewing the detailed overview of Adobe's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Adobe (NAS:ADBE) Business Description

Adobe logo
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
M. Brett Biggs director 702 SW 8TH STREET, BENTONVILLE AR 72716
Spencer Adam Neumann director SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Daniel Durn officer: EVP and CFO C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Melanie Boulden director 345 PARK AVENUE, SAN JOSE CA 95110
Anil Chakravarthy officer: EVP & GM, Digital Experience C/O INFORMATICA CORPORATION, 2100 SEAPORT BOULEVARD, REDWOOD CITY CA 94063
Gloria Chen officer: EVP, Strategy & Growth 345 PARK AVENUE, SAN JOSE CA 95110
Dheeraj Pandey director C/O NUTANIX INC, 1740 TECHNOLOGY DRIVE, SAN JOSE CA 95110
Kathleen K. Oberg director 10400 FERNWOOD ROAD, BETHESDA MD 20817
Mark S. Garfield officer: VP, CAO & Corp. Controller 345 PARK AVENUE, SAN JOSE CA 95110-2704
Dana Rao officer: EVP, Gen. Counsel & Secretary 345 PARK AVE, SAN JOSE CA 95110
David A Ricks director LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Scott Belsky officer: EVP, Chief Product Officer 345 PARK AVENUE, SAN JOSE CA 95110
John Francis Murphy officer: SVP, CAO & Corp. Controller 2250 E. IMPERIAL HIGHWAY, EL SEGUNDO CA 90245
Abhay Parasnis officer: SVP & CTO 345 PARK AVENUE, SAN JOSE CA 95110
Charles M Geschke director, other: Co-Chairman of the Board C/O ADOBE SYSTEMS INC, 345 PARK AVENUE P O BOX 2704, SAN JOSE CA 95110-2704

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