ADBENEUTRAL

ADBE Return on Equity (ROE) Analysis

61.3%

Higher than 94% of Technology sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how effectively Adobe uses shareholders' money to generate profit; a 61.3% ROE means that for every dollar of equity, the company earned $0.613 in net profit over the past year.

Sector Performance

94th percentile

ADBE

61.3%

Sector Median

8.7%

Sector Avg

-3.2%

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Deep Analysis

This ratio is far above the technology sector median of 6.5%, placing Adobe in the 94th percentile among its peers. The metric has been perfectly stable over the last eight quarters, with no change year-over-year and no change quarter-over-quarter (both +0.0%). The combination of an exceptionally high ROE and a flat trend suggests low financial risk from earnings erosion, but also indicates limited near-term improvement in profitability efficiency. This consistency aligns with the overall NEUTRAL verdict, as the strength of the level does not point to an upgrade or downgrade without a catalyst for change.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ADBE?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ADBE's Return on Equity (ROE) compare to its sector?

ADBE's Return on Equity (ROE) of 61.3% compares to a Technology sector median of 8.7%, placing it in the 94th percentile.

Who are ADBE's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: CRWD (-0.2%), MDB (-1.0%), ZS (-3.7%), APLD (-5.6%), SMTC (-5.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.