Analysis of Debt
Total Debt (Carrying Amount)
Adobe Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).
- Current Portion of Debt
- The current portion of debt displays notable variability across the observed periods. Initially, it is recorded at 3,149 million US dollars in late 2019, followed by missing data in the subsequent two years. It reappears with a decline to 500 million US dollars in late 2022, is again unreported in late 2023, and rises to 1,499 million US dollars by late 2024. This inconsistency and fluctuation suggest possible changes in short-term debt management or reporting practices.
- Debt Excluding Current Portion
- The long-term debt, excluding the current portion, exhibits an overall increasing trend with some fluctuations. Starting at 989 million US dollars in 2019, it sharply increases to 4,117 million in 2020 and maintains a relatively stable range thereafter, with values close to 4,100 million through late 2024, except for a dip to approximately 3,629-3,634 million in 2022 and 2023. This indicates a significant rise in long-term liabilities since 2019, with some moderation during the middle period.
- Total Debt Including Current Portion
- Total debt shows an initial decline from 4,138 million US dollars in 2019 to 4,117 million by 2020, followed by a stable phase through 2021 and 2022 at approximately 4,123 to 4,129 million. A decrease to 3,634 million is observed in 2023, succeeded by a substantial increase to 5,628 million in 2024. The pattern reflects a period of relative stability, a temporary reduction, and then a marked increase in overall debt by the latest period.
- Insights
- Over the timeframe, the data reveals a steady rise in long-term debt starting in 2020, while the current portion exhibits greater volatility. Total debt aligns closely with these movements, showing overall growth from 2019 to 2024, albeit with interim fluctuations. The sharp increase in total debt in 2024 suggests a strategic shift or increased borrowing activity. The variations imply active debt management potentially influenced by operational needs or capital structure optimization efforts.
Total Debt (Fair Value)
| Nov 29, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Term loan | —) |
| Senior notes | 5,510) |
| Total debt, including current portion (fair value) | 5,510) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.98 |
Based on: 10-K (reporting date: 2024-11-29).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 3.56%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 2.07% | 500) | 10) | |
| 3.67% | 1,000) | 37) | |
| 2.26% | 850) | 19) | |
| 5.03% | 500) | 25) | |
| 4.93% | 750) | 37) | |
| 2.69% | 1,300) | 35) | |
| 5.03% | 750) | 38) | |
| Total | 5,650) | 201) | |
| 3.56% | |||
Based on: 10-K (reporting date: 2024-11-29).
1 US$ in millions
2 Weighted-average interest rate = 100 × 201 ÷ 5,650 = 3.56%