Adobe Inc. cash flow to debt ratio of 150.89% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Adobe Inc.'s free cash flow has increased 25.92% from $7.82B last year to $9.85B, signaling increasing performance

Adobe Inc.'s debt to equity ratio is 0.57, which means that the company's assets are healthy financed, signaling financial stability.

Adobe Inc.'s debt has increased relative to shareholder equity from 0.43 last year to 0.57 today, signaling weakened financials

Adobe Inc. has a net debt to EBITDA ratio of 0.01x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Adobe Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Adobe Inc.'s profit margin was 25.85% last year and is 28.05% this year, signaling increasing performance

Adobe Inc.'s short-term liabilities of $10.20B exceed its short-term assets of $10.16B, signaling financial risk

Adobe Inc.'s return on assets of 24.30% is higher than the 5.00% threshold, indicating efficient asset utilization

Adobe Inc.'s return on equity of 62.88%, is higher than 15.00%, indicating good performance

Adobe Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Adobe Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Adobe Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Adobe Inc. has a free cash flow yield of 10.53%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Adobe Inc.'s yearly earnings has increased 28.24% since last year from $5.56B to $7.13B, signaling increasing performance

Adobe Inc.'s yearly revenue has increased 10.53% since last year from $21.50B to $23.77B, signaling increasing performance

ROIC 36.79% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Adobe Inc.'s 3-year revenue CAGR of 10.52% is positive, indicating growing revenue over the past 3 years

Adobe Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Adobe Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Adobe Inc. is undervalued relative to its fair value price of 409.42 based on Base Cash Flow Valuation (DCF) model

Adobe Inc. has an earnings yield of 7.83%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Adobe Inc. is overvalued relative to its fair value price of 160.78 based on Base EBITDA Valuation model

Adobe Inc. has an EV/EBITDA ratio of 9.54x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Adobe Inc. is undervalued relative to its fair value price of 376.29 based on Base Earnings Fair Value model

Adobe Inc. has a PEG-ratio over 1 which is considered overvalued

Adobe Inc. has a price-to-book ratio of 7.91x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Adobe Inc. has a price-to-sales ratio of 3.58x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue