Adobe Systems Incorporated (ADBE)
Solvency ratios
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.14 | 1.80 | 1.93 | 1.84 | 1.83 |
Adobe Systems Incorporated has consistently shown strong solvency ratios over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been consistently at 0.00, indicating that the company does not rely heavily on debt financing to support its operations relative to its total assets, capital, and equity.
Additionally, the financial leverage ratio has experienced some fluctuations over the years, with a slight increase from 1.83 in November 27, 2020, to 2.14 in November 29, 2024. This implies that the company's assets are predominantly funded by equity rather than debt.
Overall, these solvency ratios suggest that Adobe Systems Incorporated has a solid financial foundation and is not overly leveraged, which bodes well for its ability to weather financial challenges and meet its obligations in the long term.
Coverage ratios
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 39.89 | 61.17 | 54.64 | 51.49 | 37.00 |
Interest coverage ratio is a metric used to assess a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Analyzing Adobe Systems Incorporated's interest coverage ratio over the past five years, we observe the following trend:
- November 27, 2020: 37.00
- December 3, 2021: 51.49
- December 2, 2022: 54.64
- December 1, 2023: 61.17
- November 29, 2024: 39.89
The interest coverage ratio has generally shown an increasing trend over the years, indicating that Adobe Systems has been able to generate stronger earnings relative to its interest expense. This trend reflects the company's improving financial performance and its enhanced ability to fulfill its interest payment obligations without difficulty.
In 2023, the interest coverage ratio peaked at 61.17, showcasing the company's robust earnings relative to its interest costs. The subsequent slight decrease in 2024 to 39.89 may suggest a potential fluctuation in the company's financial performance during that period. However, it is important to note that Adobe Systems still maintains a healthy interest coverage ratio, demonstrating its continued ability to cover interest payments comfortably.
Overall, the trend in Adobe Systems Incorporated's interest coverage ratio indicates a favorable financial position, with the company consistently generating sufficient earnings to meet its interest obligations. This stable and improving trend suggests that Adobe Systems has effective financial management and is in a strong position to manage its debt and interest payments in the upcoming periods.