Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Analysis of Solvency Ratios 

Microsoft Excel LibreOffice Calc

Solvency Ratios (Summary)

Adobe Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Debt Ratios
Debt to equity 0.28 0.31 0.39 0.44 0.22 0.26
Debt to equity (including operating lease liability) 0.32 0.35 0.39 0.44 0.22 0.26
Debt to capital 0.22 0.24 0.28 0.31 0.18 0.20
Debt to capital (including operating lease liability) 0.24 0.26 0.28 0.31 0.18 0.20
Debt to assets 0.15 0.17 0.20 0.22 0.13 0.15
Debt to assets (including operating lease liability) 0.17 0.19 0.20 0.22 0.13 0.15
Financial leverage 1.84 1.83 1.97 2.00 1.72 1.71
Coverage Ratios
Interest coverage 51.49 37.00 21.38 32.31 29.73 21.37
Fixed charge coverage 25.59 18.77 10.78 13.34 12.26 9.79

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Adobe Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Adobe Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Adobe Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Adobe Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Adobe Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Adobe Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Adobe Inc. financial leverage ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Adobe Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Adobe Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity

Adobe Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Selected Financial Data (US$ in millions)
Debt, current portion —  —  3,149  —  —  — 
Debt, excluding current portion 4,123  4,117  989  4,125  1,881  1,902 
Total debt 4,123  4,117  4,138  4,125  1,881  1,902 
 
Stockholders’ equity 14,797  13,264  10,530  9,362  8,460  7,425 
Solvency Ratio
Debt to equity1 0.28 0.31 0.39 0.44 0.22 0.26
Benchmarks
Debt to Equity, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00 0.00
Automatic Data Processing Inc. 0.53 0.35 0.42 0.58 0.50 0.45
Fidelity National Information Services Inc. 0.43 0.41 0.41 0.88 0.81
International Business Machines Corp. 2.74 2.99 3.02 2.73 2.66
Intuit Inc. 0.21 0.66 0.12 0.19 0.36 0.86
Mastercard Inc. 1.90 1.98 1.45 1.17 0.99
Microsoft Corp. 0.50 0.62 0.77 0.97 1.23 0.76
Oracle Corp. 16.08 5.93 2.58 1.33 1.08 0.93
PayPal Holdings Inc. 0.42 0.45 0.29 0.13 0.06
salesforce.com inc. 0.07 0.09 0.22 0.21 0.32
ServiceNow Inc. 0.43 0.58 0.33 0.60 2.01
Visa Inc. 0.56 0.66 0.48 0.49 0.56 0.48
Debt to Equity, Sector
Software & Services 0.76 0.84 0.85 0.93 0.98
Debt to Equity, Industry
Information Technology 0.74 0.83 0.81 0.80 0.78

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 4,123 ÷ 14,797 = 0.28

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Adobe Inc. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

Adobe Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Selected Financial Data (US$ in millions)
Debt, current portion —  —  3,149  —  —  — 
Debt, excluding current portion 4,123  4,117  989  4,125  1,881  1,902 
Total debt 4,123  4,117  4,138  4,125  1,881  1,902 
Current operating lease liabilities 97  92  —  —  —  — 
Long-term operating lease liabilities 453  499  —  —  —  — 
Total debt (including operating lease liability) 4,673  4,708  4,138  4,125  1,881  1,902 
 
Stockholders’ equity 14,797  13,264  10,530  9,362  8,460  7,425 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.32 0.35 0.39 0.44 0.22 0.26
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Accenture PLC 0.18 0.21 0.00 0.00 0.00 0.00
Automatic Data Processing Inc. 0.61 0.43 0.42 0.58 0.50 0.45
Fidelity National Information Services Inc. 0.44 0.42 0.42 0.88 0.81
International Business Machines Corp. 2.92 3.23 3.27 2.73 2.66
Intuit Inc. 0.25 0.71 0.12 0.19 0.36 0.86
Mastercard Inc. 2.01 2.12 1.58 1.17 0.99
Microsoft Corp. 0.58 0.69 0.84 1.06 1.23 0.76
Oracle Corp. 16.61 6.10 2.58 1.33 1.08 0.93
PayPal Holdings Inc. 0.45 0.49 0.32 0.13 0.06
salesforce.com inc. 0.15 0.18 0.22 0.21 0.32
ServiceNow Inc. 0.60 0.75 0.53 0.60 2.01
Visa Inc. 0.57 0.68 0.48 0.49 0.56 0.48
Debt to Equity (including Operating Lease Liability), Sector
Software & Services 0.84 0.92 0.90 0.96 0.98
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.80 0.90 0.84 0.81 0.78

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 4,673 ÷ 14,797 = 0.32

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Adobe Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

Adobe Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Selected Financial Data (US$ in millions)
Debt, current portion —  —  3,149  —  —  — 
Debt, excluding current portion 4,123  4,117  989  4,125  1,881  1,902 
Total debt 4,123  4,117  4,138  4,125  1,881  1,902 
Stockholders’ equity 14,797  13,264  10,530  9,362  8,460  7,425 
Total capital 18,920  17,381  14,668  13,487  10,341  9,327 
Solvency Ratio
Debt to capital1 0.22 0.24 0.28 0.31 0.18 0.20
Benchmarks
Debt to Capital, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00 0.00
Automatic Data Processing Inc. 0.35 0.26 0.30 0.37 0.33 0.31
Fidelity National Information Services Inc. 0.30 0.29 0.29 0.47 0.45
International Business Machines Corp. 0.73 0.75 0.75 0.73 0.73
Intuit Inc. 0.17 0.40 0.10 0.16 0.26 0.46
Mastercard Inc. 0.66 0.66 0.59 0.54 0.50
Microsoft Corp. 0.33 0.38 0.43 0.49 0.55 0.43
Oracle Corp. 0.94 0.86 0.72 0.57 0.52 0.48
PayPal Holdings Inc. 0.29 0.31 0.23 0.11 0.06
salesforce.com inc. 0.06 0.08 0.18 0.18 0.24
ServiceNow Inc. 0.30 0.37 0.25 0.37 0.67
Visa Inc. 0.36 0.40 0.33 0.33 0.36 0.33
Debt to Capital, Sector
Software & Services 0.43 0.46 0.46 0.48 0.50
Debt to Capital, Industry
Information Technology 0.43 0.45 0.45 0.44 0.44

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,123 ÷ 18,920 = 0.22

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Adobe Inc. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

Adobe Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Selected Financial Data (US$ in millions)
Debt, current portion —  —  3,149  —  —  — 
Debt, excluding current portion 4,123  4,117  989  4,125  1,881  1,902 
Total debt 4,123  4,117  4,138  4,125  1,881  1,902 
Current operating lease liabilities 97  92  —  —  —  — 
Long-term operating lease liabilities 453  499  —  —  —  — 
Total debt (including operating lease liability) 4,673  4,708  4,138  4,125  1,881  1,902 
Stockholders’ equity 14,797  13,264  10,530  9,362  8,460  7,425 
Total capital (including operating lease liability) 19,470  17,972  14,668  13,487  10,341  9,327 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.24 0.26 0.28 0.31 0.18 0.20
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Accenture PLC 0.15 0.17 0.00 0.00 0.00 0.00
Automatic Data Processing Inc. 0.38 0.30 0.30 0.37 0.33 0.31
Fidelity National Information Services Inc. 0.31 0.29 0.30 0.47 0.45
International Business Machines Corp. 0.74 0.76 0.77 0.73 0.73
Intuit Inc. 0.20 0.42 0.10 0.16 0.26 0.46
Mastercard Inc. 0.67 0.68 0.61 0.54 0.50
Microsoft Corp. 0.37 0.41 0.46 0.51 0.55 0.43
Oracle Corp. 0.94 0.86 0.72 0.57 0.52 0.48
PayPal Holdings Inc. 0.31 0.33 0.24 0.11 0.06
salesforce.com inc. 0.13 0.16 0.18 0.18 0.24
ServiceNow Inc. 0.37 0.43 0.35 0.37 0.67
Visa Inc. 0.36 0.40 0.33 0.33 0.36 0.33
Debt to Capital (including Operating Lease Liability), Sector
Software & Services 0.46 0.48 0.47 0.49 0.50
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.45 0.47 0.46 0.45 0.44

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 4,673 ÷ 19,470 = 0.24

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Adobe Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

Adobe Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Selected Financial Data (US$ in millions)
Debt, current portion —  —  3,149  —  —  — 
Debt, excluding current portion 4,123  4,117  989  4,125  1,881  1,902 
Total debt 4,123  4,117  4,138  4,125  1,881  1,902 
 
Total assets 27,241  24,284  20,762  18,769  14,536  12,707 
Solvency Ratio
Debt to assets1 0.15 0.17 0.20 0.22 0.13 0.15
Benchmarks
Debt to Assets, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00 0.00
Automatic Data Processing Inc. 0.06 0.05 0.05 0.05 0.05 0.05
Fidelity National Information Services Inc. 0.25 0.24 0.24 0.38 0.36
International Business Machines Corp. 0.39 0.39 0.41 0.37 0.37
Intuit Inc. 0.13 0.31 0.07 0.08 0.12 0.24
Mastercard Inc. 0.37 0.38 0.29 0.25 0.25
Microsoft Corp. 0.21 0.24 0.27 0.31 0.37 0.28
Oracle Corp. 0.64 0.62 0.52 0.44 0.43 0.39
PayPal Holdings Inc. 0.12 0.13 0.10 0.05 0.02
salesforce.com inc. 0.04 0.06 0.11 0.10 0.14
ServiceNow Inc. 0.15 0.19 0.12 0.17 0.35
Visa Inc. 0.25 0.30 0.23 0.24 0.27 0.25
Debt to Assets, Sector
Software & Services 0.26 0.28 0.28 0.29 0.31
Debt to Assets, Industry
Information Technology 0.27 0.29 0.29 0.29 0.30

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,123 ÷ 27,241 = 0.15

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Adobe Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

Adobe Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Selected Financial Data (US$ in millions)
Debt, current portion —  —  3,149  —  —  — 
Debt, excluding current portion 4,123  4,117  989  4,125  1,881  1,902 
Total debt 4,123  4,117  4,138  4,125  1,881  1,902 
Current operating lease liabilities 97  92  —  —  —  — 
Long-term operating lease liabilities 453  499  —  —  —  — 
Total debt (including operating lease liability) 4,673  4,708  4,138  4,125  1,881  1,902 
 
Total assets 27,241  24,284  20,762  18,769  14,536  12,707 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.17 0.19 0.20 0.22 0.13 0.15
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Accenture PLC 0.08 0.09 0.00 0.00 0.00 0.00
Automatic Data Processing Inc. 0.07 0.06 0.05 0.05 0.05 0.05
Fidelity National Information Services Inc. 0.25 0.25 0.25 0.38 0.36
International Business Machines Corp. 0.42 0.43 0.45 0.37 0.37
Intuit Inc. 0.16 0.33 0.07 0.08 0.12 0.24
Mastercard Inc. 0.39 0.40 0.32 0.25 0.25
Microsoft Corp. 0.25 0.27 0.30 0.34 0.37 0.28
Oracle Corp. 0.66 0.64 0.52 0.44 0.43 0.39
PayPal Holdings Inc. 0.13 0.14 0.11 0.05 0.02
salesforce.com inc. 0.10 0.11 0.11 0.10 0.14
ServiceNow Inc. 0.21 0.24 0.19 0.17 0.35
Visa Inc. 0.26 0.30 0.23 0.24 0.27 0.25
Debt to Assets (including Operating Lease Liability), Sector
Software & Services 0.29 0.31 0.30 0.30 0.31
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.29 0.31 0.30 0.29 0.30

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 4,673 ÷ 27,241 = 0.17

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Adobe Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Financial Leverage

Adobe Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Selected Financial Data (US$ in millions)
Total assets 27,241  24,284  20,762  18,769  14,536  12,707 
Stockholders’ equity 14,797  13,264  10,530  9,362  8,460  7,425 
Solvency Ratio
Financial leverage1 1.84 1.83 1.97 2.00 1.72 1.71
Benchmarks
Financial Leverage, Competitors2
Accenture PLC 2.21 2.18 2.07 2.36 2.54 2.73
Automatic Data Processing Inc. 8.60 6.81 7.76 10.72 9.35 9.74
Fidelity National Information Services Inc. 1.75 1.70 1.70 2.33 2.26
International Business Machines Corp. 6.98 7.57 7.30 7.35 7.12
Intuit Inc. 1.57 2.14 1.68 2.20 3.00 3.66
Mastercard Inc. 5.15 5.25 4.96 4.61 3.90
Microsoft Corp. 2.35 2.55 2.80 3.13 3.33 2.69
Oracle Corp. 25.03 9.56 4.99 3.00 2.51 2.37
PayPal Holdings Inc. 3.49 3.52 3.04 2.82 2.55
salesforce.com inc. 1.60 1.63 1.97 2.24 2.34
ServiceNow Inc. 2.92 3.07 2.83 3.49 5.82
Visa Inc. 2.21 2.23 2.09 2.04 2.08 1.95
Financial Leverage, Sector
Software & Services 2.90 2.98 3.03 3.21 3.15
Financial Leverage, Industry
Information Technology 2.73 2.86 2.81 2.80 2.61

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 27,241 ÷ 14,797 = 1.84

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Adobe Inc. financial leverage ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Interest Coverage

Adobe Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Selected Financial Data (US$ in millions)
Net income 4,822  5,260  2,951  2,591  1,694  1,169 
Add: Income tax expense 883  (1,084) 253  203  444  266 
Add: Interest expense 113  116  157  89  74  70 
Earnings before interest and tax (EBIT) 5,818  4,292  3,362  2,883  2,212  1,506 
Solvency Ratio
Interest coverage1 51.49 37.00 21.38 32.31 29.73 21.37
Benchmarks
Interest Coverage, Competitors2
Accenture PLC 131.46 205.84 273.26 298.26 297.95 345.67
Automatic Data Processing Inc. 57.30 30.72 24.14 22.14 32.64 40.76
Fidelity National Information Services Inc. 4.68 1.77 2.04 4.47 3.88
International Business Machines Corp. 5.20 4.62 8.58 16.71 19.56
Intuit Inc. 89.14 158.00 126.40 76.15 45.10 35.37
Mastercard Inc. 24.91 21.42 44.44 39.73 43.35
Microsoft Corp. 31.31 21.47 17.27 14.35 11.42 16.89
Oracle Corp. 6.28 7.13 6.97 7.43 7.47 8.88
PayPal Holdings Inc. 18.67 25.23 27.07 31.86 315.29
salesforce.com inc. 21.33 6.39 7.38 3.32 1.29
ServiceNow Inc. 9.89 5.56 3.02 0.26 -1.79
Visa Inc. 32.31 27.72 28.92 21.92 21.77 19.76
Interest Coverage, Sector
Software & Services 19.27 15.70 14.91 14.74 13.90
Interest Coverage, Industry
Information Technology 23.43 17.30 16.59 18.11 17.25

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,818 ÷ 113 = 51.49

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Adobe Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Fixed Charge Coverage

Adobe Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Selected Financial Data (US$ in millions)
Net income 4,822  5,260  2,951  2,591  1,694  1,169 
Add: Income tax expense 883  (1,084) 253  203  444  266 
Add: Interest expense 113  116  157  89  74  70 
Earnings before interest and tax (EBIT) 5,818  4,292  3,362  2,883  2,212  1,506 
Add: Operating lease expense 119  119  171  137  115  93 
Earnings before fixed charges and tax 5,937  4,411  3,532  3,020  2,327  1,598 
 
Interest expense 113  116  157  89  74  70 
Operating lease expense 119  119  171  137  115  93 
Fixed charges 232  235  328  226  190  163 
Solvency Ratio
Fixed charge coverage1 25.59 18.77 10.78 13.34 12.26 9.79
Benchmarks
Fixed Charge Coverage, Competitors2
Accenture PLC 10.41 9.66 10.07 9.63 8.30 10.43
Automatic Data Processing Inc. 15.85 12.22 8.51 7.43 9.05 7.82
Fidelity National Information Services Inc. 3.12 1.47 1.75 3.36 3.10
International Business Machines Corp. 3.13 2.62 4.41 5.26 5.69
Intuit Inc. 25.58 27.48 34.00 26.91 22.03 17.94
Mastercard Inc. 19.64 16.43 31.13 25.01 26.78
Microsoft Corp. 16.90 12.44 10.94 9.45 7.57 9.81
Oracle Corp. 5.17 5.68 5.50 6.38 6.39 7.44
PayPal Holdings Inc. 11.20 14.51 12.94 14.89 29.95
salesforce.com inc. 2.92 1.68 2.89 1.54 1.08
ServiceNow Inc. 2.95 2.29 1.69 0.61 -0.55
Visa Inc. 26.74 22.89 19.17 16.32 17.20 15.28
Fixed Charge Coverage, Sector
Software & Services 10.69 8.75 8.75 8.48 7.93
Fixed Charge Coverage, Industry
Information Technology 13.91 10.65 10.90 11.70 10.99

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,937 ÷ 232 = 25.59

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Adobe Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.