Aureus
AExcellent

Adobe Inc.(ADBE)

A

Financial data as of Nov 30, 2025Improving · Technology

FCF Margin41.4%Free Cash Flow / Revenue
Cash Conversion140.7%Operating CF / Net Income
Free Cash Flow$9.9B
Revenue$23.8B
Net Cash-$1.2BNet debt position
Debt / FCF0.7xManageable debt load
Current Ratio1.00Tight short-term liquidity
YoY FCF Growth+18.9%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (41.4%, 0.7x)
→
-0.5Current ratio below 1.0 (1.00) (reduced — strong FCF covers short-term obligations)
→
+1Strong YoY FCF growth (18.9% YoY)
→
+1Very low debt-to-FCF ratio (0.7x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (41.4%)
  • Excellent cash conversion (141%)
  • Very low debt relative to cash flow (0.7x)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Net debt position ($1.2B) — 0.7x FCF, manageable
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin41.4%
Net Margin30.0%
Operating CF Margin42.2%
CapEx Ratio0.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$1.2BNet debt position
Debt / FCF0.7xManageable debt load
Current Ratio1.00Tight liquidity
Debt / Equity0.57Low leverage

Quarterly FCF Trend

+18.9% YoYImproving (+18.9%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAdobe Inc.
SectorTechnology
Free Cash Flow$9.9B
Revenue$23.8B
Net Income$7.1B
Operating Cash Flow$10.0B
Capital Expenditure$179.0M
FCF Margin41.4%
Cash Conversion Rate140.7%
Net Margin30.0%
Total Debt$6.6B
Total Cash$5.4B
Net Cash-$1.2B
Current Ratio1.00
Debt / Equity0.57
Debt / FCF0.7x
YoY FCF Growth+18.9%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateNov 30, 2025
GradeA
Data SourceYahoo Finance

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