Adobe Systems Incorporated (ADBE)
Financial leverage ratio
| Nov 30, 2024 | Nov 29, 2024 | Dec 1, 2023 | Nov 30, 2023 | Dec 2, 2022 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 30,230,000 | 30,230,000 | 29,779,000 | 29,779,000 | 27,165,000 |
| Total stockholders’ equity | US$ in thousands | 14,105,000 | 14,105,000 | 16,518,000 | 16,518,000 | 14,051,000 |
| Financial leverage ratio | 2.14 | 2.14 | 1.80 | 1.80 | 1.93 |
November 30, 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 few years.
As of December 2, 2022, the ratio was 1.93, indicating that the company had $1.93 in total assets for every dollar of equity. This suggests a relatively higher level of financial leverage, meaning that a larger portion of the company's assets is funded by debt rather than equity.
By November 30, 2023, and December 1, 2023, the financial leverage ratio had decreased to 1.80. This reduction may indicate an improvement in the company's financial position, as the level of debt relative to equity had slightly decreased.
However, by November 29, 2024, and November 30, 2024, the financial leverage ratio increased to 2.14. This uptick suggests that the company took on more debt compared to equity, which could increase the financial risk associated with its operations.
Overall, it is important for investors and stakeholders to monitor Adobe Systems' financial leverage ratio to assess the company's ability to manage its debt levels effectively and maintain a healthy balance between debt and equity financing.
Peer comparison
Nov 30, 2024