Adobe Systems Incorporated (ADBE)

Financial leverage ratio

		Feb 28, 2025	Nov 30, 2024	Nov 29, 2024	Aug 31, 2024	Aug 30, 2024	May 31, 2024	Mar 1, 2024	Feb 29, 2024	Dec 1, 2023	Nov 30, 2023	Sep 1, 2023	Aug 31, 2023	Jun 2, 2023	May 31, 2023	Mar 3, 2023	Feb 28, 2023	Dec 2, 2022	Nov 30, 2022	Sep 2, 2022	Aug 31, 2022
Total assets	US$ in thousands	29,955,000	30,230,000	30,230,000	29,830,000	29,830,000	30,007,000	28,751,000	28,751,000	29,779,000	29,779,000	29,090,000	29,090,000	27,838,000	27,838,000	26,667,000	26,667,000	27,165,000	27,165,000	26,744,000	26,744,000
Total stockholders’ equity	US$ in thousands	13,095,000	14,105,000	14,105,000	14,545,000	14,545,000	14,843,000	15,460,000	15,460,000	16,518,000	16,518,000	15,776,000	15,776,000	14,838,000	14,838,000	14,206,000	14,206,000	14,051,000	14,051,000	14,373,000	14,373,000
Financial leverage ratio		2.29	2.14	2.14	2.05	2.05	2.02	1.86	1.86	1.80	1.80	1.84	1.84	1.88	1.88	1.88	1.88	1.93	1.93	1.86	1.86

February 28, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $29,955,000K ÷ $13,095,000K
= 2.29

The financial leverage ratio of Adobe Systems Incorporated has shown fluctuations over the period covered by the data. The ratio indicates the extent to which the company relies on debt financing to support its operations and growth.

From August 31, 2022, to March 3, 2023, the financial leverage ratio remained relatively stable around 1.86. However, there was a slight increase to 1.93 by November 30, 2022, highlighting a potential increase in the company's reliance on debt during that period.

Subsequently, the ratio stabilized at 1.88 from February 28, 2023, to June 2, 2023. There was a slight decrease to 1.84 by August 31, 2023, and it further declined to 1.80 by November 30, 2023, indicating a reduction in debt usage during that time frame.

However, the financial leverage ratio started to increase again by February 29, 2024, reaching 2.02 by May 31, 2024, and peaking at 2.29 by February 28, 2025. These increments suggest that Adobe Systems may have increased its reliance on debt financing, which could potentially increase financial risk.

Overall, fluctuations in the financial leverage ratio of Adobe Systems indicate varying levels of debt utilization over time, which may impact the company's financial stability and risk profile.