Adobe Systems Incorporated (ADBE)

Financial leverage ratio

		Mar 1, 2024	Dec 1, 2023	Sep 1, 2023	Mar 3, 2023	Dec 2, 2022	Sep 2, 2022	Jun 3, 2022	Mar 4, 2022	Dec 3, 2021	Sep 3, 2021	Jun 4, 2021	Mar 5, 2021	Nov 27, 2020	Aug 28, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Total assets	US$ in thousands	28,751,000	29,779,000	29,090,000	26,667,000	27,165,000	26,744,000	26,326,000	25,976,000	27,241,000	26,144,000	25,582,000	24,985,000	24,284,000	22,414,000	21,603,000	21,214,000	20,762,000	20,054,900	19,665,900	19,505,500
Total stockholders’ equity	US$ in thousands	15,460,000	16,518,000	15,776,000	14,206,000	14,051,000	14,373,000	13,985,000	13,775,000	14,797,000	14,414,000	13,852,000	13,546,000	13,264,000	11,713,000	10,881,000	10,465,000	10,530,000	10,243,000	9,932,000	9,871,000
Financial leverage ratio		1.86	1.80	1.84	1.88	1.93	1.86	1.88	1.89	1.84	1.81	1.85	1.84	1.83	1.91	1.99	2.03	1.97	1.96	1.98	1.98

March 1, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $28,751,000K ÷ $15,460,000K
= 1.86

The financial leverage ratio of Adobe Systems Incorporated has shown some fluctuation over the past few quarters, ranging from a low of 1.80 to a high of 2.03. The ratio indicates that the company's level of financial leverage has generally been increasing over the period in question, as it has trended upwards. A financial leverage ratio above 1 suggests that the company uses debt to finance its operations, with ratios closer to 2 indicating a higher level of debt relative to equity.

The increase in the financial leverage ratio could be due to Adobe Systems taking on more debt to fund growth opportunities or strategic investments. While higher leverage can amplify returns in a favorable market environment, it also increases financial risk, particularly in times of economic downturn or rising interest rates.

It would be important for stakeholders to closely monitor Adobe Systems' financial leverage ratio and ensure that the company's debt levels remain sustainable and do not pose a significant risk to its financial stability in the long run. It could also be beneficial for the company to assess its capital structure and evaluate the optimal balance between debt and equity financing to support its growth and profitability objectives effectively.