Adobe (ADBE) Sloan Ratio %

Adobe Annual Data
	Trend	Nov14	Nov15	Nov16	Nov17	Nov18	Nov19	Nov20	Nov21	Nov22	Nov23
Sloan Ratio %							-4.89	-0.22	4.14	-9.25	-8.90

Adobe Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Sloan Ratio %																-10.77	-11.90	-11.90	-8.90	-9.28

For the Software - Infrastructure subindustry, Adobe's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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.

For the Software industry and Technology sector, Adobe's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Adobe's Sloan Ratio % falls into.

Adobe Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Adobe's Sloan Ratio for the fiscal year that ended in Nov. 2023 is calculated as

Adobe's Sloan Ratio for the quarter that ended in Feb. 2024 is calculated as

Adobe's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 1295 (May. 2023 ) + 1403 (Aug. 2023 ) + 1483 (Nov. 2023 ) + 620 (Feb. 2024 ) = $4,801 Mil.
Adobe's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 2139 (May. 2023 ) + 1873 (Aug. 2023 ) + 1597 (Nov. 2023 ) + 1174 (Feb. 2024 ) = $6,783 Mil.
Adobe's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was 322 (May. 2023 ) + 145 (Aug. 2023 ) + 153 (Nov. 2023 ) + 66 (Feb. 2024 ) = $686 Mil.

* 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.

Adobe  (NAS:ADBE) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Feb. 2024, Adobe has a Sloan Ratio of -9.28%, indicating the company is in the safe zone and there is no funny business with accruals.

Adobe Sloan Ratio % Related Terms

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

Adobe (ADBE) Business Description