Adobe (LIM:ADBE) ROCE % : 40.93% (As of Nov. 2024)

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What is Adobe ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Adobe's annualized ROCE % for the quarter that ended in Nov. 2024 was 40.93%.

Adobe ROCE % Historical Data

The historical data trend for Adobe's ROCE % 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.

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Adobe ROCE % Chart

Adobe Annual Data

Trend

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Nov24

ROCE %

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27.39

29.77

31.11

34.08

34.44

Adobe Quarterly Data
	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24
ROCE %	Get a 7-Day Free Trial															34.74	19.54	39.67	41.12	40.93

Adobe ROCE % Calculation

Adobe's annualized ROCE % for the fiscal year that ended in Nov. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Nov. 2024 )		(A: Nov. 2023 )		(A: Nov. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Nov. 2024 )		(A: Nov. 2023 )		(A: Nov. 2024 )
	=	7100	/	( ( (29779 - 8251)	+	(30230 - 10521) )	/ 2 )
	=	7100	/	( (21528	+	19709)	/ 2 )
	=	7100	/	20618.5
	=	34.44 %

Adobe's ROCE % of for the quarter that ended in Nov. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Nov. 2024 )		(Q: Aug. 2024 )		(Q: Nov. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Nov. 2024 )		(Q: Aug. 2024 )		(Q: Nov. 2024 )
	=	8164	/	( ( (29830 - 9644)	+	(30230 - 10521) )	/ 2 )
	=	8164	/	( ( 20186	+	19709 )	/ 2 )
	=	8164	/	19947.5
	=	40.93 %

(1) Note: The EBIT data used here is four times the quarterly (Nov. 2024) EBIT data.

Adobe (LIM:ADBE) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Adobe ROCE % Related Terms

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Adobe Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

ADBE:USA ADBE:Mexico 1ADBE:Italy ADBd:UK 0R2Y:UK ADB0:Germany ADB:Germany ADB:Germany ADB:Germany ADB:Germany ADBECL:Chile ADBE:Canada ADBE34:Brazil ADB:Bulgaria ADBE:Austria ADBE:Argentina

Address

345 Park Avenue, San Jose, CA, USA, 95110-2704

Website

https://www.adobe.com

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).