The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 26.42% in 2019 to 27.97% in 2023.
The average EBIT Margin for the period under analysis was 32.25%, with 2019 and 2022 performing the worst and best, respectively.
In the current year, Adobe was able to cover its interest liabilities 61.17 times in the current year- compared to 2019 when it was 21.41 times.
The Asset turnover stood at 0.69 times in 2023 from 0.56 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Adobe has increased year on year. The revenue increased by 15.19% between 2019 and 2020 and a further 22.67% increase was recorded between 2020 and 2021. There also occurred an increase of 10.24% between 2022 and 2023 (the current period).
Adobe’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks fair, as the current ratio increased from 0.79:1 to 1.32:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Adobe is both equity and debt financed.
The debt-to-equity (D/E) ratio has been increasing year on year. The gearing position of the company appears to be low as it stood at 25% in the current year.
