Adobe Systems Incorporated (ADBE)
Debt-to-capital ratio
| Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 16,518,000 | 14,051,000 | 14,797,000 | 13,264,000 | 10,530,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 1, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $16,518,000K)
= 0.00
The debt-to-capital ratio of Adobe Inc has displayed a decreasing trend over the past five years, indicating an improvement in the company's financial leverage and risk management. The ratio has decreased from 0.28 in November 2019 to 0.18 in December 2023. This decline suggests that Adobe has reduced its reliance on debt in relation to its total capital, which includes both debt and equity. The decreasing trend of this ratio signifies that Adobe has been able to effectively manage and reduce its debt levels in comparison to its total capital, a positive indicator of the company's financial stability and solvency.
Peer comparison
Dec 1, 2023