Adobe Systems Incorporated (ADBE)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 1, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $16,518,000K
= 0.00
The debt-to-equity ratio measures the proportion of a company's financing that comes from debt compared to equity. A lower ratio indicates less reliance on debt for financing, which is generally perceived as favorable.
Adobe Inc's debt-to-equity ratio has shown a decreasing trend over the past five years, declining from 0.39 in November 2019 to 0.22 in December 2023. This demonstrates a reduction in the company's reliance on debt for its financing needs. A lower debt-to-equity ratio could suggest that Adobe Inc is less leveraged, thus potentially reducing financial risk and increasing financial flexibility.
Overall, the decreasing trend in Adobe Inc's debt-to-equity ratio indicates a positive financial position in terms of leveraging and capital structure. However, it's important to consider other financial factors and industry benchmarks when assessing the company's overall financial health.
Peer comparison
Dec 1, 2023