Adobe Inc Financials
Adobe Inc (ADBE) reported $23.8B in revenue for fiscal year 2025, up 10.5% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Adobe’s high-gross-margin model converts revenue growth into cash quickly, then recycles it through aggressive buybacks.
In the latest year, free cash flow reached$9.9B while capex was only$179M , showing how little physical reinvestment the model needs. At the same time, buybacks of$11.3B exceeded that free cash flow, which helps explain why ROE looks unusually high: equity was being reduced while profits were rising.
Gross margin held near
The capital return program is now large enough to reshape the balance sheet: cash ended at
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Adobe Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Adobe Inc has an operating margin of 36.6%, meaning the company retains $37 of operating profit per $100 of revenue. This strong profitability earns a score of 96/100, reflecting efficient cost management and pricing power. This is up from 31.4% the prior year.
Adobe Inc's revenue grew 10.5% year-over-year to $23.8B, a solid pace of expansion. This earns a growth score of 66/100.
Adobe Inc carries a low D/E ratio of 0.53, meaning only $0.53 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 82/100, indicating a strong balance sheet with room for future borrowing.
Adobe Inc's current ratio of 1.00 is below the typical benchmark, resulting in a score of 18/100. However, the company holds substantial cash reserves (53% of current liabilities), which buffers actual liquidity risk. Large mature operators often run tight current ratios by design.
Adobe Inc converts 41.4% of revenue into free cash flow ($9.9B). This strong cash generation earns a score of 97/100.
Adobe Inc earns a strong 61.3% return on equity (ROE), meaning it generates $61 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 94/100. This is up from 39.4% the prior year.
Adobe Inc scores 7.60, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Adobe Inc passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Adobe Inc generates $1.41 in operating cash flow ($10.0B OCF vs $7.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Adobe Inc earns $33.10 in operating income for every $1 of interest expense ($8.7B vs $263.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Adobe Inc generated $23.8B in revenue in fiscal year 2025. This represents an increase of 10.5% from the prior year.
Adobe Inc's EBITDA was $9.5B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 25.3% from the prior year.
Adobe Inc reported $7.1B in net income in fiscal year 2025. This represents an increase of 28.2% from the prior year.
Adobe Inc earned $16.70 per diluted share (EPS) in fiscal year 2025. This represents an increase of 35.1% from the prior year.
Cash & Balance Sheet
Adobe Inc generated $9.9B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 25.1% from the prior year.
Adobe Inc held $5.4B in cash against $6.2B in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Adobe Inc's gross margin was 89.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.2 percentage points from the prior year.
Adobe Inc's operating margin was 36.6% in fiscal year 2025, reflecting core business profitability. This is up 5.3 percentage points from the prior year.
Adobe Inc's net profit margin was 30.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 4.1 percentage points from the prior year.
Adobe Inc's ROE was 61.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 21.9 percentage points from the prior year.
Capital Allocation
Adobe Inc spent $11.3B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 18.7% from the prior year.
Adobe Inc invested $179.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 2.2% from the prior year.
Not reported for fiscal year 2025.
ADBE Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $25.2B | $23.8B+10.5% | $21.5B+10.8% | $19.4B+10.2% | $17.6B+11.5% | $15.8B+22.7% | $12.9B+15.2% | $11.2B+23.7% | $9.0B+23.7% | $7.3B+24.7% | $5.9B+22.1% | $4.8B+15.6% | $4.1B+2.3% | $4.1B-7.9% | $4.4B+4.4% | $4.2B |
| Cost of Revenue | $2.7B | $2.6B+8.2% | $2.4B+0.2% | $2.4B+8.7% | $2.2B+16.1% | $1.9B+8.3% | $1.7B+2.9% | $1.7B+40.0% | $1.2B+18.3% | $1.0B+23.2% | $819.9M+10.2% | $744.3M+19.6% | $622.1M+6.1% | $586.6M+21.2% | $483.8M+10.5% | $437.9M |
| Gross Profit | $22.5B | $21.2B+10.8% | $19.1B+12.3% | $17.1B+10.5% | $15.4B+10.9% | $13.9B+24.9% | $11.1B+17.4% | $9.5B+21.2% | $7.8B+24.5% | $6.3B+25.0% | $5.0B+24.3% | $4.1B+14.9% | $3.5B+1.6% | $3.5B-11.5% | $3.9B+3.7% | $3.8B |
| SG&A Expenses | $1.8B | $1.6B+2.9% | $1.5B+8.2% | $1.4B+15.9% | $1.2B+12.4% | $1.1B+12.1% | $968.0M+9.9% | $881.0M+18.3% | $745.0M+19.3% | $624.7M+8.4% | $576.2M+8.0% | $533.5M-1.8% | $543.3M+4.5% | $520.1M+19.6% | $435.0M+4.9% | $414.6M |
| Operating Income | $9.1B | $8.7B+29.1% | $6.7B+1.4% | $6.7B+9.1% | $6.1B+5.1% | $5.8B+36.9% | $4.2B+29.7% | $3.3B+15.1% | $2.8B+31.0% | $2.2B+45.2% | $1.5B+65.4% | $903.1M+118.8% | $412.7M-2.4% | $422.7M-64.2% | $1.2B+7.4% | $1.1B |
| Interest Expense | $261.0M | $263.0M+55.6% | $169.0M+49.6% | $113.0M+0.9% | $112.0M-0.9% | $113.0M-2.6% | $116.0M-26.1% | $157.0M+76.4% | $89.0M+19.6% | $74.4M+5.6% | $70.4M+9.8% | $64.2M+7.5% | $59.7M-11.5% | $67.5M0.0% | $67.5M+0.8% | $67.0M |
| Income Tax | $1.9B | $1.6B+17.0% | $1.4B0.0% | $1.4B+9.5% | $1.3B+41.8% | $883.0M+181.5% | -$1.1B-526.8% | $254.0M+25.1% | $203.0M-54.2% | $443.7M+66.6% | $266.4M+9.1% | $244.2M+162.7% | $93.0M+40.5% | $66.2M-76.9% | $286.0M+41.3% | $202.4M |
| Net Income | $7.2B | $7.1B+28.2% | $5.6B+2.4% | $5.4B+14.1% | $4.8B-1.4% | $4.8B-8.3% | $5.3B+78.2% | $3.0B+13.9% | $2.6B+53.0% | $1.7B+44.9% | $1.2B+85.7% | $629.6M+134.6% | $268.4M-7.4% | $290.0M-65.2% | $832.8M0.0% | $832.8M |
| EPS (Diluted) | — | $16.70+35.1% | $12.36+4.6% | $11.82+17.0% | $10.10+0.8% | $10.02-7.5% | $10.83+80.5% | $6.00+15.4% | $5.20+53.8% | $3.38+45.7% | $2.32+87.1% | $1.24+134.0% | $0.53-5.4% | $0.56-66.3% | $1.66+0.6% | $1.65 |
Not reported in any period shown, so not listed: R&D Expenses.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
ADBE Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $29.5B-2.4% | $30.2B+1.5% | $29.8B+9.6% | $27.2B-0.3% | $27.2B+12.2% | $24.3B+17.0% | $20.8B+10.6% | $18.8B+29.1% | $14.5B+14.5% | $12.7B+8.3% | $11.7B+8.7% | $10.8B+3.9% | $10.4B+3.4% | $10.0B+11.7% | $9.0B |
| Current Assets | $10.2B-9.5% | $11.2B+1.3% | $11.1B+23.2% | $9.0B+3.8% | $8.7B+6.4% | $8.1B+25.4% | $6.5B+33.7% | $4.9B-33.0% | $7.2B+24.1% | $5.8B+21.1% | $4.8B+4.8% | $4.6B+13.8% | $4.0B-8.0% | $4.4B+16.6% | $3.8B |
| Cash & Equivalents | $5.4B-28.7% | $7.6B+6.6% | $7.1B+68.6% | $4.2B+10.2% | $3.8B-14.2% | $4.5B+69.0% | $2.6B+61.3% | $1.6B-28.8% | $2.3B+128.0% | $1.0B+15.4% | $876.6M-21.6% | $1.1B+33.9% | $834.6M-41.4% | $1.4B+44.0% | $989.5M |
| Accounts Receivable | $2.3B+13.1% | $2.1B-6.8% | $2.2B+7.7% | $2.1B+10.0% | $1.9B+34.3% | $1.4B-8.9% | $1.5B+13.0% | $1.4B+11.5% | $1.2B+46.2% | $833.0M+24.0% | $672.0M+13.6% | $591.8M-1.3% | $599.8M-2.8% | $617.2M-2.7% | $634.4M |
| Goodwill | $12.9B+0.5% | $12.8B-0.1% | $12.8B+0.1% | $12.8B+0.9% | $12.7B+17.9% | $10.7B+0.5% | $10.7B+1.0% | $10.6B+81.8% | $5.8B+7.7% | $5.4B+0.7% | $5.4B+13.7% | $4.7B-1.0% | $4.8B+15.5% | $4.1B+7.4% | $3.8B |
| Total Liabilities | $17.9B+10.8% | $16.1B+21.6% | $13.3B+1.1% | $13.1B+5.4% | $12.4B+12.9% | $11.0B+7.7% | $10.2B+8.8% | $9.4B+54.8% | $6.1B+15.2% | $5.3B+11.6% | $4.7B+17.8% | $4.0B+9.7% | $3.7B+8.3% | $3.4B+5.2% | $3.2B |
| Current Liabilities | $10.2B-3.1% | $10.5B+27.5% | $8.3B+1.5% | $8.1B+17.3% | $6.9B+25.8% | $5.5B-32.7% | $8.2B+90.4% | $4.3B+21.9% | $3.5B+25.5% | $2.8B+27.0% | $2.2B-11.3% | $2.5B+63.5% | $1.5B+20.0% | $1.3B+1.7% | $1.3B |
| Long-Term Debt | $6.2B+50.4% | $4.1B+13.6% | $3.6B+0.1% | $3.6B-12.0% | $4.1B+0.1% | $4.1B+316.3% | $989.0M-76.0% | $4.1B+119.2% | $1.9B-0.6% | $1.9B-0.8% | $1.9B+109.3% | $911.1M-39.2% | $1.5B+0.2% | $1.5B-0.5% | $1.5B |
| Total Equity | $11.6B-17.6% | $14.1B-14.6% | $16.5B+17.6% | $14.1B-5.0% | $14.8B+11.6% | $13.3B+26.0% | $10.5B+12.5% | $9.4B+10.7% | $8.5B+13.9% | $7.4B+6.0% | $7.0B+3.3% | $6.8B+0.8% | $6.7B+0.9% | $6.7B+15.3% | $5.8B |
| Retained Earnings | $45.4B+17.9% | $38.5B+15.4% | $33.3B+17.8% | $28.3B+18.5% | $23.9B+21.9% | $19.6B+32.2% | $14.8B+21.0% | $12.3B+28.0% | $9.6B+18.0% | $8.1B+11.9% | $7.3B+4.8% | $6.9B-0.1% | $6.9B-1.1% | $7.0B+7.3% | $6.5B |
Not reported in any period shown, so not listed: Inventory.
ADBE Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $10.5B | $10.0B+24.5% | $8.1B+10.3% | $7.3B-6.8% | $7.8B+8.4% | $7.2B+26.2% | $5.7B+29.5% | $4.4B+9.8% | $4.0B+38.3% | $2.9B+32.4% | $2.2B+49.7% | $1.5B+14.1% | $1.3B+11.8% | $1.2B-23.2% | $1.5B-2.8% | $1.5B |
| Capital Expenditures | $201.0M | $179.0M-2.2% | $183.0M-49.2% | $360.0M-18.6% | $442.0M+27.0% | $348.0M-16.9% | $419.0M+6.1% | $395.0M+47.9% | $267.0M+49.9% | $178.1M-12.6% | $203.8M+10.2% | $184.9M+24.7% | $148.3M-21.2% | $188.4M-30.5% | $271.1M+28.9% | $210.3M |
| Free Cash Flow | $10.3B | $9.9B+25.1% | $7.9B+13.4% | $6.9B-6.1% | $7.4B+7.5% | $6.9B+29.7% | $5.3B+31.8% | $4.0B+7.0% | $3.8B+37.6% | $2.7B+37.0% | $2.0B+55.4% | $1.3B+12.8% | $1.1B+18.3% | $963.3M-21.6% | $1.2B-7.8% | $1.3B |
| Investing Cash Flow | -$1.7B | -$1.2B-896.6% | $149.0M-80.8% | $776.0M+236.1% | -$570.0M+83.9% | -$3.5B-754.3% | -$414.0M+9.2% | -$456.0M+90.3% | -$4.7B-957.9% | -$442.9M+53.9% | -$960.0M+35.5% | -$1.5B-203.3% | -$490.7M+58.3% | -$1.2B-41.1% | -$834.7M-10.2% | -$757.4M |
| Financing Cash Flow | -$8.8B | -$11.1B-43.2% | -$7.7B-49.1% | -$5.2B+24.1% | -$6.8B-58.7% | -$4.3B-23.3% | -$3.5B-18.4% | -$2.9B-58820.0% | -$5.0M+99.6% | -$1.2B-8.5% | -$1.1B-443.5% | -$200.7M+60.4% | -$507.3M+9.3% | -$559.1M-138.2% | -$234.7M+57.4% | -$550.4M |
| Share Buybacks | $9.1B | $11.3B+18.7% | $9.5B+115.9% | $4.4B-32.8% | $6.5B+65.8% | $4.0B+29.5% | $3.0B+10.9% | $2.8B+34.1% | $2.0B+86.4% | $1.1B+2.3% | $1.1B+72.0% | $625.0M+4.2% | $600.0M-45.5% | $1.1B+171.6% | $405.0M-41.7% | $695.0M |
Not reported in any period shown, so not listed: Dividends Paid.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
ADBE Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 89.3%+0.2pp | 89.0%+1.2pp | 87.9%+0.2pp | 87.7%-0.5pp | 88.2%+1.6pp | 86.6%+1.6pp | 85.0%-1.8pp | 86.8%+0.6pp | 86.2%+0.2pp | 86.0%+1.5pp | 84.5%-0.5pp | 85.0%-0.5pp | 85.5%-3.5pp | 89.0%-0.6pp | 89.6% |
| Operating Margin | 36.6%+5.3pp | 31.4%-2.9pp | 34.3%-0.4pp | 34.6%-2.1pp | 36.8%+3.8pp | 32.9%+3.7pp | 29.3%-2.2pp | 31.4%+1.8pp | 29.7%+4.2pp | 25.5%+6.7pp | 18.8%+8.9pp | 10.0%-0.5pp | 10.4%-16.4pp | 26.8%+0.7pp | 26.1% |
| Net Margin | 30.0%+4.1pp | 25.9%-2.1pp | 28.0%+1.0pp | 27.0%-3.5pp | 30.6%-10.3pp | 40.9%+14.5pp | 26.4%-2.3pp | 28.7%+5.5pp | 23.2%+3.2pp | 20.0%+6.8pp | 13.1%+6.7pp | 6.5%-0.7pp | 7.1%-11.8pp | 18.9%-0.8pp | 19.8% |
| Return on Equity | 61.3%+21.9pp | 39.4%+6.6pp | 32.9%-1.0pp | 33.9%+1.3pp | 32.6%-7.1pp | 39.7%+11.6pp | 28.0%+0.3pp | 27.7%+7.6pp | 20.0%+4.3pp | 15.7%+6.8pp | 9.0%+5.0pp | 4.0%-0.3pp | 4.3%-8.2pp | 12.5%-1.9pp | 14.4% |
| Return on Assets | 24.2%+5.8pp | 18.4%+0.2pp | 18.2%+0.7pp | 17.5%-0.2pp | 17.7%-4.0pp | 21.7%+7.4pp | 14.2%+0.4pp | 13.8%+2.2pp | 11.7%+2.4pp | 9.2%+3.8pp | 5.4%+2.9pp | 2.5%-0.3pp | 2.8%-5.5pp | 8.3%-1.0pp | 9.3% |
| Current Ratio | 1.00-0.1x | 1.07-0.3x | 1.34+0.2x | 1.11-0.1x | 1.25-0.2x | 1.48+0.7x | 0.79-0.3x | 1.13-0.9x | 2.050.0x | 2.08-0.1x | 2.18+0.3x | 1.84-0.8x | 2.65-0.8x | 3.46+0.4x | 3.02 |
| Debt-to-Equity | 0.53+0.2x | 0.29+0.1x | 0.220.0x | 0.260.0x | 0.280.0x | 0.31+0.2x | 0.09-0.3x | 0.44+0.2x | 0.220.0x | 0.250.0x | 0.27+0.1x | 0.13-0.1x | 0.220.0x | 0.220.0x | 0.26 |
| FCF Margin | 41.4%+4.8pp | 36.6%+0.8pp | 35.8%-6.2pp | 42.0%-1.6pp | 43.6%+2.4pp | 41.3%+5.2pp | 36.0%-5.6pp | 41.7%+4.2pp | 37.5%+3.4pp | 34.1%+7.3pp | 26.8%-0.7pp | 27.5%+3.7pp | 23.8%-4.1pp | 27.9%-3.7pp | 31.6% |
Note: The current ratio is below 1.0 (1.00), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Where Adobe Inc Ranks
Frequently Asked Questions
What is Adobe Inc's annual revenue?
Adobe Inc (ADBE) reported $23.8B in total revenue for fiscal year 2025. This represents a 10.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Adobe Inc's revenue growing?
Adobe Inc (ADBE) revenue grew by 10.5% year-over-year, from $21.5B to $23.8B in fiscal year 2025.
Is Adobe Inc profitable?
Yes, Adobe Inc (ADBE) reported a net income of $7.1B in fiscal year 2025, with a net profit margin of 30.0%.
What is Adobe Inc's EBITDA?
Adobe Inc (ADBE) had EBITDA of $9.5B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Adobe Inc have?
As of fiscal year 2025, Adobe Inc (ADBE) had $5.4B in cash and equivalents against $6.2B in long-term debt.
What is Adobe Inc's gross margin?
Adobe Inc (ADBE) had a gross margin of 89.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Adobe Inc's operating margin?
Adobe Inc (ADBE) had an operating margin of 36.6% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Adobe Inc's net profit margin?
Adobe Inc (ADBE) had a net profit margin of 30.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Adobe Inc's return on equity (ROE)?
Adobe Inc (ADBE) has a return on equity of 61.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Adobe Inc's free cash flow?
Adobe Inc (ADBE) generated $9.9B in free cash flow during fiscal year 2025. This represents a 25.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Adobe Inc's operating cash flow?
Adobe Inc (ADBE) generated $10.0B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Adobe Inc's total assets?
Adobe Inc (ADBE) had $29.5B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Adobe Inc's capital expenditures?
Adobe Inc (ADBE) invested $179.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Adobe Inc's current ratio?
Adobe Inc (ADBE) had a current ratio of 1.00 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Adobe Inc's debt-to-equity ratio?
Adobe Inc (ADBE) had a debt-to-equity ratio of 0.53 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Adobe Inc's return on assets (ROA)?
Adobe Inc (ADBE) had a return on assets of 24.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Adobe Inc's Altman Z-Score?
Adobe Inc (ADBE) has an Altman Z-Score of 7.60, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Adobe Inc's Piotroski F-Score?
Adobe Inc (ADBE) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Adobe Inc's earnings high quality?
Adobe Inc (ADBE) has an earnings quality ratio of 1.41x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Adobe Inc cover its interest payments?
Adobe Inc (ADBE) has an interest coverage ratio of 33.10x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Adobe Inc?
Adobe Inc (ADBE) scores 76 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.