Adobe Systems Incorporated (ADBE)
Solvency ratios
| Nov 30, 2024 | Nov 29, 2024 | Dec 1, 2023 | Nov 30, 2023 | Dec 2, 2022 | |
|---|---|---|---|---|---|
| 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 | 2.14 | 1.80 | 1.80 | 1.93 |
Based on the provided data, Adobe Systems Incorporated shows strong solvency ratios with consistently low levels of debt relative to its assets, capital, and equity over the analyzed period.
The Debt-to-assets ratio, which indicates the proportion of the company's assets financed by debt, remained at 0.00 throughout the period. This implies that Adobe has not relied on debt to fund its operations or investments.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also stood at 0.00 across all the reported dates, signifying that the company's capital and equity structures were not leveraged with debt.
The Financial leverage ratio provides insight into the extent to which a company is using debt to finance its operations. While this ratio increased from 1.80 in 2023 to 2.14 in 2024, the values are still relatively low. This suggests that Adobe's financial leverage increased slightly but remained at a moderate level, indicating a conservative approach to debt utilization.
Overall, the solvency ratios of Adobe Systems Incorporated reflect a prudent financial strategy characterized by minimal reliance on debt for funding its operations and investments, which enhances the company's financial stability and resilience.
Coverage ratios
| Nov 30, 2024 | Nov 29, 2024 | Dec 1, 2023 | Nov 30, 2023 | Dec 2, 2022 | |
|---|---|---|---|---|---|
| Interest coverage | 42.01 | 39.89 | 61.17 | 53.38 | 54.64 |
Based on the provided data, the interest coverage ratio of Adobe Systems Incorporated has been relatively stable over the years, with values ranging from 39.89 to 61.17. This ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
A higher interest coverage ratio suggests that Adobe has more than enough earnings to cover its interest obligations, indicating a lower risk of default on its debt. Conversely, a lower ratio could signal potential financial distress if the company is unable to generate sufficient earnings to meet its interest payments.
Overall, with interest coverage ratios consistently above 1 (indicating the company's ability to cover interest payments), Adobe Systems Incorporated appears to have a healthy financial position regarding its debt obligations. However, it is essential to continue monitoring this ratio to ensure the company maintains its ability to meet its interest expenses comfortably in the future.