Adobe Systems Incorporated (ADBE)

Financial leverage ratio

		Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020	Nov 29, 2019
Total assets	US$ in thousands	29,779,000	27,165,000	27,241,000	24,284,000	20,762,000
Total stockholders’ equity	US$ in thousands	16,518,000	14,051,000	14,797,000	13,264,000	10,530,000
Financial leverage ratio		1.80	1.93	1.84	1.83	1.97

December 1, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $29,779,000K ÷ $16,518,000K
= 1.80

The financial leverage ratio for Adobe Inc has fluctuated over the past five years. In 2019, it stood at 1.97, indicating a higher degree of financial leverage. However, there was a noticeable decrease in 2022 to 1.93 before further declining to 1.80 in 2023. This suggests a trend towards reduced financial leverage over the years, representing a lower reliance on debt financing compared to equity. It is essential for the company to maintain a balanced level of leverage to manage financial risk and optimize capital structure.