Adobe Systems Incorporated (ADBE)
Interest coverage
| Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,912,000 | 6,120,000 | 5,818,000 | 4,292,000 | 3,362,000 |
| Interest expense | US$ in thousands | 113,000 | 112,000 | 113,000 | 116,000 | 157,000 |
| Interest coverage | 61.17 | 54.64 | 51.49 | 37.00 | 21.41 |
December 1, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $6,912,000K ÷ $113,000K
= 61.17
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. Adobe Inc's interest coverage has shown a positive trend over the past five years. In 2019, the interest coverage ratio was 36.76, and it steadily increased to 58.04 in 2020 and further to 60.44 in 2021, demonstrating an improving ability to cover interest expenses. Notably, the ratio reached an impressive level of 119.57 in 2022, indicating a strong capacity to handle its interest obligations. However, it's worth noting that the value for 2023 is not available, making it difficult to assess the current trend. Overall, Adobe Inc's interest coverage has generally improved over the years, reflecting a strengthening financial position in terms of servicing its debt.
Peer comparison
Dec 1, 2023