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Adobe (BUE:ADBE) 3-Year ROIIC % : 48.68% (As of Nov. 2024)


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What is Adobe 3-Year ROIIC %?

3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year. Adobe's 3-Year ROIIC % for the quarter that ended in Nov. 2024 was 48.68%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Adobe's 3-Year ROIIC % or its related term are showing as below:

BUE:ADBE's 3-Year ROIIC % is ranked better than
83.75% of 2590 companies
in the Software industry
Industry Median: 3.135 vs BUE:ADBE: 48.68

Adobe 3-Year ROIIC % Historical Data

The historical data trend for Adobe's 3-Year ROIIC % 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 3-Year ROIIC % Chart

Adobe Annual Data
Trend Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.76 33.01 53.91 -0.56 48.68

Adobe Quarterly Data
Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24
3-Year ROIIC % 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 -0.56 - - - 48.68

Competitive Comparison of Adobe's 3-Year ROIIC %

For the Software - Infrastructure subindustry, Adobe's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % Distribution in the Software Industry

For the Software industry and Technology sector, Adobe's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Adobe's 3-Year ROIIC % falls into.



Adobe 3-Year ROIIC % Calculation

Adobe's 3-Year ROIIC % for the quarter that ended in Nov. 2024 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 6147731.9597694 (Nov. 2024) - 489502.3452376 (Nov. 2021) )/( 26435970.264 (Nov. 2024) - 2397676.391 (Nov. 2021) )
=5658229.6145318/24038293.873
=23.54%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Adobe  (BUE:ADBE) 3-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Adobe 3-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of Adobe's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Adobe 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).