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Adobe (ADBE) Return-on-Tangible-Equity : 116.13% (As of Feb. 2024)


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What is Adobe Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Adobe's annualized net income for the quarter that ended in Feb. 2024 was $2,480 Mil. Adobe's average shareholder tangible equity for the quarter that ended in Feb. 2024 was $2,136 Mil. Therefore, Adobe's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2024 was 116.13%.

The historical rank and industry rank for Adobe's Return-on-Tangible-Equity or its related term are showing as below:

ADBE' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 18.31   Med: 87.85   Max: 7670.97
Current: 346.69

During the past 13 years, Adobe's highest Return-on-Tangible-Equity was 7,670.97%. The lowest was 18.31%. And the median was 87.85%.

ADBE's Return-on-Tangible-Equity is ranked better than
89.99% of 2377 companies
in the Software industry
Industry Median: 7.96 vs ADBE: 346.69

Adobe Return-on-Tangible-Equity Historical Data

The historical data trend for Adobe's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart

Adobe Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity 655.16 7,670.97 444.92

Adobe Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Return-on-Tangible-Equity Get a 7-Day Free Trial 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 Negative Tangible Equity 1,227.49 432.86 267.57 116.13

Competitive Comparison of Adobe's Return-on-Tangible-Equity

For the Software - Infrastructure subindustry, Adobe's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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's Return-on-Tangible-Equity Distribution in the Software Industry

For the Software industry and Technology sector, Adobe's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Adobe's Return-on-Tangible-Equity falls into.



Adobe Return-on-Tangible-Equity Calculation

Adobe's annualized Return-on-Tangible-Equity for the fiscal year that ended in Nov. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Nov. 2023 )  (A: Nov. 2022 )(A: Nov. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Nov. 2023 )  (A: Nov. 2022 )(A: Nov. 2023 )
=5428/( (-185+2625 )/ 2 )
=5428/1220
=444.92 %

Adobe's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Feb. 2024 )  (Q: Nov. 2023 )(Q: Feb. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Feb. 2024 )  (Q: Nov. 2023 )(Q: Feb. 2024 )
=2480/( (2625+1646)/ 2 )
=2480/2135.5
=116.13 %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Feb. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Adobe  (NAS:ADBE) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Adobe Return-on-Tangible-Equity Related Terms

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


Adobe (ADBE) Business Description

Industry
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

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