Adobe Systems Incorporated (ADBE)
Financial leverage ratio
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 30,230,000 | 29,779,000 | 27,165,000 | 27,241,000 | 24,284,000 |
| Total stockholders’ equity | US$ in thousands | 14,105,000 | 16,518,000 | 14,051,000 | 14,797,000 | 13,264,000 |
| Financial leverage ratio | 2.14 | 1.80 | 1.93 | 1.84 | 1.83 |
November 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $30,230,000K ÷ $14,105,000K
= 2.14
The financial leverage ratio of Adobe Systems Incorporated has shown some fluctuation over the past five years. Starting at 1.83 in November 27, 2020, the ratio increased mildly to 1.84 by December 3, 2021. Subsequently, it experienced a more notable rise to 1.93 by December 2, 2022, indicating an increase in the company's reliance on debt financing during that period. However, by December 1, 2023, the ratio decreased to 1.80, suggesting a potential deleveraging or a shift towards a more equity-based financing structure. Notably, the ratio jumped significantly to 2.14 by November 29, 2024, reflecting a substantial increase in the company's financial leverage.
Overall, the trend in Adobe's financial leverage ratio indicates some variability in the company's capital structure over the years, with periods of both increasing and decreasing leverage. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the potential impact on the company's financial stability and risk profile.
Peer comparison
Nov 29, 2024