Adobe Systems Incorporated (ADBE)

Interest coverage

		Nov 29, 2024	Aug 30, 2024	May 31, 2024	Mar 1, 2024	Dec 1, 2023	Sep 1, 2023	Jun 2, 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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	6,915,000	6,794,000	6,572,000	6,277,000	6,912,000	6,621,000	6,335,000	6,179,000	6,120,000	6,071,000	6,032,000	5,926,000	5,818,000	5,546,000	5,189,000	4,803,000	4,292,000	4,062,000	3,849,000	3,572,000
Interest expense (ttm)	US$ in thousands	169,000	147,000	123,000	108,000	113,000	113,000	114,000	116,000	112,000	112,000	111,000	111,000	113,000	112,000	113,000	113,000	116,000	125,000	137,000	149,000
Interest coverage		40.92	46.22	53.43	58.12	61.17	58.59	55.57	53.27	54.64	54.21	54.34	53.39	51.49	49.52	45.92	42.50	37.00	32.50	28.09	23.97

November 29, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $6,915,000K ÷ $169,000K
= 40.92

The interest coverage ratio for Adobe Systems Incorporated has shown a steady upward trend over the reported periods. Starting from 23.97 in February 28, 2020, the ratio has consistently improved, reaching a high of 61.17 on December 1, 2023. This indicates the company's ability to comfortably meet its interest obligations using its operating income. However, a slight decline was observed in the most recent period, with the ratio falling to 40.92 on November 29, 2024.

Overall, Adobe Systems Incorporated has demonstrated strong interest coverage throughout the analyzed timeframe, suggesting a healthy financial position and a reduced risk of default on its debt obligations. Investors and creditors may view the company favorably due to its consistent improvement in this important financial metric, despite the slight decrease in the last reported period.