Adobe Systems Incorporated (ADBE)
Solvency ratios
| Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.80 | 1.93 | 1.84 | 1.83 | 1.97 |
The solvency ratios of Adobe Inc, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, have exhibited a favorable trend over the past five years. The debt-to-assets ratio has consistently decreased from 0.20 in 2019 to 0.12 in 2023, indicating a reduction in the proportion of the company's assets financed by debt. Similarly, the debt-to-capital and debt-to-equity ratios have demonstrated a declining pattern, indicating a decrease in the reliance on debt funding in relation to capital and equity, respectively. This trend suggests improved financial strength and reduced financial risk for the company.
Moreover, the financial leverage ratio, which measures the extent of a company's financial leverage, has shown a decreasing trend from 1.97 in 2019 to 1.80 in 2023. This indicates a reduction in the company's reliance on debt to finance its assets. Overall, the solvency ratios reflect a strengthening financial position and a prudent approach to managing debt obligations by Adobe Inc over the reviewed period.
Coverage ratios
| Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 61.17 | 54.64 | 51.49 | 37.00 | 21.41 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is more capable of covering its interest expenses.
Looking at the interest coverage ratio for Adobe Inc over the past five years, we observe a consistent and positive trend. The ratio has improved significantly from 36.76 in November 2019 to 119.57 in December 2022. This indicates that the company's ability to cover its interest expenses has strengthened over time.
The substantial increase in the interest coverage ratio suggests that Adobe Inc has been generating ample operating income to comfortably cover its interest payments on debt. This trend reflects positively on the company's financial health and its ability to manage its debt obligations effectively.
Overall, the upward trend in the interest coverage ratio for Adobe Inc demonstrates a favorable financial position and stability in meeting its interest obligations.