ADBE  Adobe Systems Incorporated

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

70.19B

Inconsistent Net Profit Margins over the past 10 years

ADBE potentially has a competitive advantage, however inconsistent profit margins are a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$16.62 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Net Income 723.81M 871.81M 386.51M 774.68M 832.85M 832.78M 289.99M 268.40M 629.55M 1.17B
divided by
Revenue 3.16B 3.58B 2.95B 3.80B 4.22B 4.40B 4.06B 4.15B 4.80B 5.85B
Net Profit Margin 22.92% 24.35% 13.12% 20.39% 19.75% 18.91% 7.15% 6.47% 13.13% 19.96%

Strong Pricing Power over the past 10 years

ADBE has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$87.76 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Gross Profit 2.80B 3.22B 2.65B 3.40B 3.78B 3.92B 3.47B 3.52B 4.05B 5.03B
divided by
Revenue 3.16B 3.58B 2.95B 3.80B 4.22B 4.40B 4.06B 4.15B 4.80B 5.85B
Gross Margin 88.77% 89.87% 89.93% 89.38% 89.61% 89.01% 85.54% 85.00% 84.48% 86.00%

Medium Capital Intensity over the past 10 years

ADBE has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

30.87% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in November
2007200820092010201120122013201420152016
Capital Expenditure 132.08M 111.79M 119.59M 169.64M 210.29M 271.08M 188.36M 148.33M 184.94M 203.81M
divided by
Net Income 723.81M 871.81M 386.51M 774.68M 832.85M 832.78M 289.99M 268.40M 629.55M 1.17B
Capital Expenditure Ratio 18.25% 12.82% 30.94% 21.90% 25.25% 32.55% 64.95% 55.27% 29.38% 17.44%