Adobe Systems Incorporated (ADBE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Adobe Systems Incorporated has consistently maintained a low level of debt relative to its assets, capital, and equity over the analyzed periods, as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios all being recorded as zero. This suggests that the company relies more on equity financing than debt to fund its operations and investments.
However, the financial leverage ratio, which measures the company's total assets relative to its equity, shows a fluctuating trend over time. While the ratio has generally remained above 1.80, indicating that Adobe has more assets than equity, there has been some variability in this leverage level.
Overall, the solvency analysis based on these ratios suggests that Adobe Systems Incorporated is managing its capital structure conservatively by maintaining a low level of debt and a relatively stable financial leverage ratio.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 54.66 | 58.97 | 55.90 | 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 | 21.42 | 20.83 | 22.69 | 26.37 |
The interest coverage ratio for Adobe Systems Incorporated has shown a generally positive trend over the past few years, indicating the company's ability to cover its interest expenses with its earnings. The ratio has consistently been above 20, which is considered healthy and indicative of strong financial health.
The trend was particularly strong from 2019 through early 2022, where the interest coverage ratio consistently ranged between 45 and 58, showing a robust ability to meet interest obligations. However, there was a slight decline in the ratio from early 2022 to early 2024, with the ratio fluctuating between 49 and 55. This slight downward trend should be monitored to ensure that the company's earnings continue to sufficiently cover its interest expenses.
Overall, the interest coverage ratio suggests that Adobe Systems Incorporated has a solid financial position and is effectively managing its debt obligations.