Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Adobe Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-08-28), 10-Q (reporting date: 2026-05-29), 10-Q (reporting date: 2026-02-27), 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05).
The solvency profile exhibits two distinct phases: a period of stability and debt reduction from early 2021 through late 2023, followed by a significant increase in leverage and a corresponding decline in interest coverage starting in early 2024.
- Debt-to-Equity and Debt-to-Capital Ratios
- Between March 2021 and December 2023, debt-to-equity ratios remained relatively low, decreasing from 0.30 to a low of 0.22. However, a sharp reversal occurred beginning in March 2024, with the ratio climbing steadily to peak at 0.58 in May 2026. Debt-to-capital ratios mirrored this trajectory, shifting from a low of 0.18 in December 2023 to a peak of 0.37 in May 2026, indicating a strategic shift toward a more debt-heavy capital structure.
- Debt-to-Assets Ratio
- The proportion of assets financed by debt remained stable or slightly declined from 0.16 in March 2021 to 0.12 by December 2023. Starting in March 2024, this ratio increased, eventually plateauing between 0.21 and 0.22 from February 2025 through August 2026. This suggests that while debt increased, the asset base expanded or was revalued in a manner that kept the asset-to-debt relationship relatively consistent after the initial spike.
- Financial Leverage
- Financial leverage remained constrained between 1.80 and 1.93 for the first three years of the period. A marked expansion is observed from March 2024 (1.86), with the ratio ascending to a peak of 2.60 by February 2026. This indicates a heightened use of debt to acquire assets, which increases the potential for both magnified returns and higher financial risk.
- Interest Coverage Ratio
- The ability to service interest payments showed strong growth initially, rising from 42.50 in March 2021 to a peak of 61.17 in December 2023. Following the increase in leverage in early 2024, the coverage ratio entered a sustained decline, reaching a low of 34.21 in November 2025 before a slight recovery to 36.70 by August 2026. Despite this decline, the ratio remains substantially high, suggesting that interest obligations are still well-covered by operating earnings.
- Impact of Operating Lease Liabilities
- Ratios inclusive of operating lease liabilities consistently track the primary debt ratios with a small, stable premium. The gap between the standard debt ratios and those including leases remained narrow throughout the period, indicating that operating leases are a consistent but secondary component of the overall solvency risk compared to formal debt instruments.
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Debt to Equity
Adobe Inc., debt to equity calculation (quarterly data)
| Aug 28, 2026 | May 29, 2026 | Feb 27, 2026 | Nov 28, 2025 | Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Debt, current portion | 1,597) | 1,843) | 849) | —) | —) | —) | —) | 1,499) | 1,499) | 1,498) | 1,497) | —) | —) | —) | —) | 500) | 500) | 499) | 499) | —) | —) | —) | —) | |||||||
| Debt, excluding current portion | 4,766) | 4,802) | 5,379) | 6,210) | 6,200) | 6,166) | 6,155) | 4,129) | 4,128) | 4,127) | 2,138) | 3,634) | 3,633) | 3,631) | 3,630) | 3,629) | 3,627) | 3,627) | 3,626) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Total debt | 6,363) | 6,645) | 6,228) | 6,210) | 6,200) | 6,166) | 6,155) | 5,628) | 5,627) | 5,625) | 3,635) | 3,634) | 3,633) | 3,631) | 3,630) | 4,129) | 4,127) | 4,126) | 4,125) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Stockholders’ equity | 11,764) | 11,518) | 11,433) | 11,623) | 11,770) | 11,448) | 13,095) | 14,105) | 14,545) | 14,843) | 15,460) | 16,518) | 15,776) | 14,838) | 14,206) | 14,051) | 14,373) | 13,985) | 13,775) | 14,797) | 14,414) | 13,852) | 13,546) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to equity1 | 0.54 | 0.58 | 0.54 | 0.53 | 0.53 | 0.54 | 0.47 | 0.40 | 0.39 | 0.38 | 0.24 | 0.22 | 0.23 | 0.24 | 0.26 | 0.29 | 0.29 | 0.30 | 0.30 | 0.28 | 0.29 | 0.30 | 0.30 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 0.16 | 0.16 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.04 | 0.06 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| AppLovin Corp. | — | 1.11 | 1.49 | 1.65 | 2.38 | 3.01 | 6.45 | 3.22 | 3.74 | 4.32 | 4.64 | 2.48 | 2.85 | 2.11 | 1.69 | 1.69 | 1.71 | 1.69 | 1.60 | — | — | — | — | |||||||
| Cadence Design Systems Inc. | — | 0.36 | 0.44 | 0.45 | 0.48 | 0.49 | 0.52 | 0.53 | 0.62 | 0.32 | 0.18 | 0.19 | 0.21 | 0.22 | 0.23 | 0.27 | 0.29 | 0.13 | 0.13 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.23 | 0.25 | 0.26 | 0.29 | 0.31 | 0.55 | 0.59 | 0.28 | 0.31 | 0.34 | 0.37 | 0.41 | 0.45 | 0.49 | 0.52 | 0.57 | 0.61 | 0.66 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 1.80 | 2.01 | 1.88 | 2.26 | 2.33 | 2.35 | 2.01 | 2.31 | 2.35 | 2.56 | 2.51 | 2.39 | 2.59 | 2.72 | 2.32 | 2.53 | 2.59 | 2.85 | — | — | — | — | |||||||
| Intuit Inc. | 0.30 | 0.32 | 0.32 | 0.30 | 0.32 | 0.35 | 0.34 | 0.33 | 0.32 | 0.35 | 0.35 | 0.35 | 0.38 | 0.45 | 0.43 | 0.42 | 0.40 | 0.43 | 0.21 | — | — | — | — | |||||||
| Microsoft Corp. | 0.10 | 0.10 | 0.12 | 0.13 | 0.13 | 0.15 | 0.16 | 0.19 | 0.26 | 0.31 | 0.32 | 0.23 | 0.25 | 0.26 | 0.28 | 0.30 | 0.31 | 0.33 | 0.35 | — | — | — | — | |||||||
| Oracle Corp. | 3.50 | 3.61 | 3.78 | 4.53 | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 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 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.05 | 0.00 | 0.00 | 0.00 | 0.05 | 0.08 | 0.11 | 0.19 | 0.26 | 0.42 | 0.90 | 1.14 | 2.99 | 5.05 | 7.24 | 17.51 | 10.89 | 31.19 | 7.08 | — | — | — | — | |||||||
| Salesforce Inc. | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.24 | 0.06 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.60 | 0.13 | 0.12 | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.17 | 0.18 | 0.20 | 0.21 | 0.21 | 0.27 | 0.30 | 0.33 | 0.35 | 0.39 | — | — | — | — | |||||||
| Synopsys Inc. | 0.32 | 0.33 | 0.33 | 0.48 | 0.52 | 1.01 | 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 | 0.02 | 0.02 | 0.02 | 0.03 | |||||||
| Workday Inc. | 0.34 | 0.33 | 0.33 | 0.33 | 0.35 | 0.36 | 0.37 | 0.37 | 0.45 | 0.47 | 0.50 | 0.53 | 0.55 | 0.80 | 0.86 | 0.41 | 0.44 | 0.48 | 0.55 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-28), 10-Q (reporting date: 2026-05-29), 10-Q (reporting date: 2026-02-27), 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05).
1 Q3 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 6,363 ÷ 11,764 = 0.54
2 Click competitor name to see calculations.
The solvency profile reveals a significant shift in capital structure between March 2021 and August 2026. The period is characterized by an initial phase of stability and deleveraging, followed by a sharp increase in financial leverage and a simultaneous contraction of stockholders' equity beginning in early 2024.
- Debt to Equity Ratio Trajectory
- The debt to equity ratio initially maintained a stable range between 0.28 and 0.30 from March 2021 through December 2022. A period of improving solvency followed, with the ratio reaching a minimum of 0.22 by December 2023. However, a reversal occurred in May 2024, initiating a steady upward trend that peaked at 0.58 in February 2026, before settling at 0.54 by August 2026.
- Total Debt Analysis
- Debt levels remained nearly constant at approximately $4.1 billion for the first two years of the analysis. A reduction to $3.6 billion was observed starting in March 2023. This was followed by a substantial increase in borrowing starting in May 2024, with total debt rising to $5.6 billion and eventually peaking at $6.6 billion in May 2026.
- Stockholders' Equity Trends
- Equity demonstrated consistent growth from March 2021 ($13.5 billion), reaching a peak of $16.5 billion in September 2023. From December 2023 onward, a downward trend emerged, with equity declining to approximately $11.4 billion by early 2025 and remaining within the $11.4 billion to $11.7 billion range through August 2026.
- Solvency Synthesis
- The confluence of rising total debt and declining stockholders' equity resulted in a significant increase in the debt to equity ratio. The transition from a ratio of 0.22 in late 2023 to 0.54 by late 2026 indicates a shift toward a more leveraged financial position, effectively more than doubling the proportion of debt relative to equity over a three-year window.
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Debt to Equity (including Operating Lease Liability)
Adobe Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Aug 28, 2026 | May 29, 2026 | Feb 27, 2026 | Nov 28, 2025 | Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | Nov 29, 2024 | Aug 30, 2024 | May 31, 2024 | Mar 1, 2024 | Dec 1, 2023 | Sep 1, 2023 | Jun 2, 2023 | Mar 3, 2023 | Dec 2, 2022 | Sep 2, 2022 | Jun 3, 2022 | Mar 4, 2022 | Dec 3, 2021 | Sep 3, 2021 | Jun 4, 2021 | Mar 5, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Debt, current portion | 1,597) | 1,843) | 849) | —) | —) | —) | —) | 1,499) | 1,499) | 1,498) | 1,497) | —) | —) | —) | —) | 500) | 500) | 499) | 499) | —) | —) | —) | —) | |||||||
| Debt, excluding current portion | 4,766) | 4,802) | 5,379) | 6,210) | 6,200) | 6,166) | 6,155) | 4,129) | 4,128) | 4,127) | 2,138) | 3,634) | 3,633) | 3,631) | 3,630) | 3,629) | 3,627) | 3,627) | 3,626) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Total debt | 6,363) | 6,645) | 6,228) | 6,210) | 6,200) | 6,166) | 6,155) | 5,628) | 5,627) | 5,625) | 3,635) | 3,634) | 3,633) | 3,631) | 3,630) | 4,129) | 4,127) | 4,126) | 4,125) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Current operating lease liabilities | 89) | 91) | 84) | 77) | 74) | 74) | 74) | 75) | 70) | 67) | 73) | 73) | 74) | 74) | 81) | 87) | 88) | 90) | 93) | 97) | 97) | 96) | 94) | |||||||
| Long-term operating lease liabilities | 310) | 329) | 344) | 361) | 362) | 323) | 334) | 353) | 381) | 398) | 378) | 373) | 389) | 408) | 415) | 417) | 426) | 442) | 447) | 453) | 466) | 477) | 494) | |||||||
| Total debt (including operating lease liability) | 6,762) | 7,065) | 6,656) | 6,648) | 6,636) | 6,563) | 6,563) | 6,056) | 6,078) | 6,090) | 4,086) | 4,080) | 4,096) | 4,113) | 4,126) | 4,633) | 4,641) | 4,658) | 4,665) | 4,673) | 4,685) | 4,693) | 4,707) | |||||||
| Stockholders’ equity | 11,764) | 11,518) | 11,433) | 11,623) | 11,770) | 11,448) | 13,095) | 14,105) | 14,545) | 14,843) | 15,460) | 16,518) | 15,776) | 14,838) | 14,206) | 14,051) | 14,373) | 13,985) | 13,775) | 14,797) | 14,414) | 13,852) | 13,546) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.57 | 0.61 | 0.58 | 0.57 | 0.56 | 0.57 | 0.50 | 0.43 | 0.42 | 0.41 | 0.26 | 0.25 | 0.26 | 0.28 | 0.29 | 0.33 | 0.32 | 0.33 | 0.34 | 0.32 | 0.33 | 0.34 | 0.35 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 0.26 | 0.27 | 0.27 | 0.26 | 0.27 | 0.28 | 0.28 | 0.15 | 0.17 | 0.12 | 0.12 | 0.12 | 0.12 | 0.14 | 0.14 | 0.15 | 0.16 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | |||||||
| Datadog Inc. | — | 0.29 | 0.32 | 0.34 | 0.37 | 0.40 | 0.64 | 0.68 | 0.37 | 0.40 | 0.43 | 0.45 | 0.49 | 0.54 | 0.56 | 0.59 | 0.65 | 0.67 | 0.72 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 1.89 | 2.12 | 1.98 | 2.39 | 2.46 | 2.49 | 2.14 | 2.46 | 2.49 | 2.70 | 2.66 | 2.54 | 2.72 | 2.85 | 2.46 | 2.68 | 2.75 | 3.02 | — | — | — | — | |||||||
| Intuit Inc. | 0.33 | 0.36 | 0.35 | 0.33 | 0.35 | 0.38 | 0.37 | 0.35 | 0.34 | 0.38 | 0.37 | 0.38 | 0.40 | 0.48 | 0.47 | 0.45 | 0.43 | 0.46 | 0.25 | — | — | — | — | |||||||
| Microsoft Corp. | 0.14 | 0.15 | 0.17 | 0.18 | 0.19 | 0.21 | 0.21 | 0.25 | 0.32 | 0.37 | 0.39 | 0.29 | 0.31 | 0.33 | 0.35 | 0.37 | 0.38 | 0.40 | 0.42 | — | — | — | — | |||||||
| Oracle Corp. | 3.98 | 4.15 | 4.36 | 5.09 | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 0.02 | 0.03 | 0.02 | 0.03 | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 | 0.04 | 0.05 | 0.06 | 0.07 | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.07 | 0.04 | 0.04 | 0.04 | 0.10 | 0.14 | 0.17 | 0.26 | 0.34 | 0.50 | 1.02 | 1.30 | 3.20 | 5.42 | 7.80 | 18.82 | 11.70 | 33.58 | 7.65 | — | — | — | — | |||||||
| Salesforce Inc. | 0.19 | 0.18 | 0.19 | 0.19 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.25 | 0.30 | 0.14 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.68 | 0.21 | 0.19 | 0.21 | 0.22 | 0.24 | 0.24 | 0.24 | 0.26 | 0.28 | 0.30 | 0.31 | 0.32 | 0.40 | 0.44 | 0.47 | 0.51 | 0.55 | — | — | — | — | |||||||
| Synopsys Inc. | 0.35 | 0.36 | 0.36 | 0.50 | 0.55 | 1.08 | 0.07 | 0.08 | 0.09 | 0.09 | 0.10 | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.11 | 0.13 | 0.13 | 0.14 | 0.13 | |||||||
| Workday Inc. | 0.43 | 0.41 | 0.38 | 0.37 | 0.39 | 0.40 | 0.41 | 0.41 | 0.49 | 0.52 | 0.55 | 0.58 | 0.60 | 0.86 | 0.92 | 0.46 | 0.51 | 0.56 | 0.63 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-28), 10-Q (reporting date: 2026-05-29), 10-Q (reporting date: 2026-02-27), 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05).
1 Q3 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 6,762 ÷ 11,764 = 0.57
2 Click competitor name to see calculations.
The solvency profile demonstrates two distinct phases: a period of leverage reduction followed by a significant increase in the debt-to-equity ratio. From early 2021 through late 2023, there was a consistent improvement in the solvency position, characterized by decreasing debt and increasing equity. However, starting in March 2024, a reversal occurred, leading to a higher reliance on debt relative to equity.
- Total Debt Obligations
- Between March 2021 and March 2023, total debt, including operating lease liabilities, showed a gradual downward trend, decreasing from 4,707 million USD to 4,126 million USD. A sharp increase is observed in March 2024, where debt levels rose to 6,090 million USD. This upward trajectory continued through May 2026, peaking at 7,065 million USD before moderating to 6,762 million USD by August 2026.
- Stockholders' Equity Dynamics
- Equity experienced a growth phase from March 2021, reaching a peak of 16,518 million USD in December 2023. Subsequently, a period of contraction began, with equity falling to 13,095 million USD by February 2025. From mid-2025 through August 2026, equity levels remained relatively stable, fluctuating within a range between 11,433 million USD and 11,770 million USD.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio declined from 0.35 in March 2021 to a low of 0.25 in December 2023, indicating an initial strengthening of the balance sheet. A sharp inflection point occurred in March 2024, as the ratio rose to 0.41. The ratio continued to climb steadily, reaching a peak of 0.61 in May 2026, before settling at 0.57 in August 2026. This upward trend is the result of the simultaneous increase in total debt and the reduction in stockholders' equity.
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Debt to Capital
Adobe Inc., debt to capital calculation (quarterly data)
| Aug 28, 2026 | May 29, 2026 | Feb 27, 2026 | Nov 28, 2025 | Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Debt, current portion | 1,597) | 1,843) | 849) | —) | —) | —) | —) | 1,499) | 1,499) | 1,498) | 1,497) | —) | —) | —) | —) | 500) | 500) | 499) | 499) | —) | —) | —) | —) | |||||||
| Debt, excluding current portion | 4,766) | 4,802) | 5,379) | 6,210) | 6,200) | 6,166) | 6,155) | 4,129) | 4,128) | 4,127) | 2,138) | 3,634) | 3,633) | 3,631) | 3,630) | 3,629) | 3,627) | 3,627) | 3,626) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Total debt | 6,363) | 6,645) | 6,228) | 6,210) | 6,200) | 6,166) | 6,155) | 5,628) | 5,627) | 5,625) | 3,635) | 3,634) | 3,633) | 3,631) | 3,630) | 4,129) | 4,127) | 4,126) | 4,125) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Stockholders’ equity | 11,764) | 11,518) | 11,433) | 11,623) | 11,770) | 11,448) | 13,095) | 14,105) | 14,545) | 14,843) | 15,460) | 16,518) | 15,776) | 14,838) | 14,206) | 14,051) | 14,373) | 13,985) | 13,775) | 14,797) | 14,414) | 13,852) | 13,546) | |||||||
| Total capital | 18,127) | 18,163) | 17,661) | 17,833) | 17,970) | 17,614) | 19,250) | 19,733) | 20,172) | 20,468) | 19,095) | 20,152) | 19,409) | 18,469) | 17,836) | 18,180) | 18,500) | 18,111) | 17,900) | 18,920) | 18,536) | 17,972) | 17,665) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to capital1 | 0.35 | 0.37 | 0.35 | 0.35 | 0.35 | 0.35 | 0.32 | 0.29 | 0.28 | 0.27 | 0.19 | 0.18 | 0.19 | 0.20 | 0.20 | 0.23 | 0.22 | 0.23 | 0.23 | 0.22 | 0.22 | 0.23 | 0.23 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.03 | 0.06 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| AppLovin Corp. | — | 0.53 | 0.60 | 0.62 | 0.70 | 0.75 | 0.87 | 0.76 | 0.79 | 0.81 | 0.82 | 0.71 | 0.74 | 0.68 | 0.63 | 0.63 | 0.63 | 0.63 | 0.62 | — | — | — | — | |||||||
| Cadence Design Systems Inc. | — | 0.27 | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | 0.35 | 0.38 | 0.24 | 0.15 | 0.16 | 0.17 | 0.18 | 0.19 | 0.21 | 0.23 | 0.12 | 0.11 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.18 | 0.20 | 0.21 | 0.22 | 0.23 | 0.36 | 0.37 | 0.22 | 0.24 | 0.25 | 0.27 | 0.29 | 0.31 | 0.33 | 0.34 | 0.36 | 0.38 | 0.40 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 0.64 | 0.67 | 0.65 | 0.69 | 0.70 | 0.70 | 0.67 | 0.70 | 0.70 | 0.72 | 0.72 | 0.71 | 0.72 | 0.73 | 0.70 | 0.72 | 0.72 | 0.74 | — | — | — | — | |||||||
| Intuit Inc. | 0.23 | 0.24 | 0.24 | 0.23 | 0.24 | 0.26 | 0.25 | 0.25 | 0.24 | 0.26 | 0.26 | 0.26 | 0.27 | 0.31 | 0.30 | 0.30 | 0.29 | 0.30 | 0.17 | — | — | — | — | |||||||
| Microsoft Corp. | 0.09 | 0.09 | 0.11 | 0.11 | 0.12 | 0.13 | 0.14 | 0.16 | 0.21 | 0.24 | 0.24 | 0.19 | 0.20 | 0.21 | 0.22 | 0.23 | 0.23 | 0.25 | 0.26 | — | — | — | — | |||||||
| Oracle Corp. | 0.78 | 0.78 | 0.79 | 0.82 | 0.85 | 0.87 | 0.89 | 0.91 | 0.94 | 0.96 | 0.97 | 0.99 | 1.03 | 1.05 | 1.07 | 1.09 | 1.12 | 1.15 | 1.02 | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 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 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.05 | 0.00 | 0.00 | 0.00 | 0.05 | 0.08 | 0.10 | 0.16 | 0.21 | 0.29 | 0.47 | 0.53 | 0.75 | 0.83 | 0.88 | 0.95 | 0.92 | 0.97 | 0.88 | — | — | — | — | |||||||
| Salesforce Inc. | 0.12 | 0.12 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.19 | 0.06 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.38 | 0.11 | 0.10 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.16 | 0.16 | 0.17 | 0.18 | 0.21 | 0.23 | 0.25 | 0.26 | 0.28 | — | — | — | — | |||||||
| Synopsys Inc. | 0.24 | 0.25 | 0.25 | 0.32 | 0.34 | 0.50 | 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 | 0.02 | 0.02 | 0.02 | 0.02 | |||||||
| Workday Inc. | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.31 | 0.32 | 0.33 | 0.35 | 0.35 | 0.45 | 0.46 | 0.29 | 0.30 | 0.32 | 0.35 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-28), 10-Q (reporting date: 2026-05-29), 10-Q (reporting date: 2026-02-27), 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05).
1 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,363 ÷ 18,127 = 0.35
2 Click competitor name to see calculations.
The solvency profile of the company underwent three distinct phases between March 2021 and August 2026, transitioning from a period of stability to a phase of deleveraging, and finally to a period of strategic leverage expansion.
- Stability and Baseline Leverage (March 2021 – December 2022)
- During this period, total debt remained nearly stagnant, fluctuating minimally around the US$ 4.1 billion mark. Total capital showed moderate volatility, peaking at US$ 18.9 billion in December 2021. Consequently, the debt to capital ratio remained highly stable, oscillating within a narrow range between 0.22 and 0.23, indicating a consistent capital structure.
- Deleveraging Phase (March 2023 – March 2024)
- A notable reduction in leverage occurred starting in March 2023, as total debt decreased to approximately US$ 3.6 billion. This reduction in absolute debt, coupled with an increase in total capital which peaked at US$ 20.1 billion in December 2023, drove the debt to capital ratio down to its lowest observed level of 0.18. This trend signifies a period of strengthened solvency and reduced reliance on borrowed funds.
- Leverage Expansion and Peak Solvency Shift (May 2024 – August 2026)
- Beginning in May 2024, there was a significant upward shift in the debt profile. Total debt increased sharply from US$ 3.6 billion to US$ 5.6 billion, continuing a steady climb to a peak of US$ 6.6 billion in May 2026. While total capital fluctuated between US$ 17.6 billion and US$ 20.4 billion, the increase in debt dominated the ratio. The debt to capital ratio rose consistently from 0.27 in May 2024 to a peak of 0.37 in February 2026, before stabilizing at 0.35 by August 2026.
Overall, the data reflects a deliberate increase in the company's leverage over the final two years of the analyzed period. The shift from a ratio of 0.18 in late 2023 to 0.35 by mid-2026 indicates a structural change in the financing mix, with a larger proportion of the capital base being funded through debt.
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Debt to Capital (including Operating Lease Liability)
Adobe Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Aug 28, 2026 | May 29, 2026 | Feb 27, 2026 | Nov 28, 2025 | Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Debt, current portion | 1,597) | 1,843) | 849) | —) | —) | —) | —) | 1,499) | 1,499) | 1,498) | 1,497) | —) | —) | —) | —) | 500) | 500) | 499) | 499) | —) | —) | —) | —) | |||||||
| Debt, excluding current portion | 4,766) | 4,802) | 5,379) | 6,210) | 6,200) | 6,166) | 6,155) | 4,129) | 4,128) | 4,127) | 2,138) | 3,634) | 3,633) | 3,631) | 3,630) | 3,629) | 3,627) | 3,627) | 3,626) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Total debt | 6,363) | 6,645) | 6,228) | 6,210) | 6,200) | 6,166) | 6,155) | 5,628) | 5,627) | 5,625) | 3,635) | 3,634) | 3,633) | 3,631) | 3,630) | 4,129) | 4,127) | 4,126) | 4,125) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Current operating lease liabilities | 89) | 91) | 84) | 77) | 74) | 74) | 74) | 75) | 70) | 67) | 73) | 73) | 74) | 74) | 81) | 87) | 88) | 90) | 93) | 97) | 97) | 96) | 94) | |||||||
| Long-term operating lease liabilities | 310) | 329) | 344) | 361) | 362) | 323) | 334) | 353) | 381) | 398) | 378) | 373) | 389) | 408) | 415) | 417) | 426) | 442) | 447) | 453) | 466) | 477) | 494) | |||||||
| Total debt (including operating lease liability) | 6,762) | 7,065) | 6,656) | 6,648) | 6,636) | 6,563) | 6,563) | 6,056) | 6,078) | 6,090) | 4,086) | 4,080) | 4,096) | 4,113) | 4,126) | 4,633) | 4,641) | 4,658) | 4,665) | 4,673) | 4,685) | 4,693) | 4,707) | |||||||
| Stockholders’ equity | 11,764) | 11,518) | 11,433) | 11,623) | 11,770) | 11,448) | 13,095) | 14,105) | 14,545) | 14,843) | 15,460) | 16,518) | 15,776) | 14,838) | 14,206) | 14,051) | 14,373) | 13,985) | 13,775) | 14,797) | 14,414) | 13,852) | 13,546) | |||||||
| Total capital (including operating lease liability) | 18,526) | 18,583) | 18,089) | 18,271) | 18,406) | 18,011) | 19,658) | 20,161) | 20,623) | 20,933) | 19,546) | 20,598) | 19,872) | 18,951) | 18,332) | 18,684) | 19,014) | 18,643) | 18,440) | 19,470) | 19,099) | 18,545) | 18,253) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.37 | 0.38 | 0.37 | 0.36 | 0.36 | 0.36 | 0.33 | 0.30 | 0.29 | 0.29 | 0.21 | 0.20 | 0.21 | 0.22 | 0.23 | 0.25 | 0.24 | 0.25 | 0.25 | 0.24 | 0.25 | 0.25 | 0.26 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.13 | 0.14 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.16 | |||||||
| Datadog Inc. | — | 0.23 | 0.24 | 0.26 | 0.27 | 0.28 | 0.39 | 0.40 | 0.27 | 0.29 | 0.30 | 0.31 | 0.33 | 0.35 | 0.36 | 0.37 | 0.39 | 0.40 | 0.42 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 0.65 | 0.68 | 0.66 | 0.70 | 0.71 | 0.71 | 0.68 | 0.71 | 0.71 | 0.73 | 0.73 | 0.72 | 0.73 | 0.74 | 0.71 | 0.73 | 0.73 | 0.75 | — | — | — | — | |||||||
| Intuit Inc. | 0.25 | 0.26 | 0.26 | 0.25 | 0.26 | 0.28 | 0.27 | 0.26 | 0.25 | 0.28 | 0.27 | 0.28 | 0.29 | 0.32 | 0.32 | 0.31 | 0.30 | 0.31 | 0.20 | — | — | — | — | |||||||
| Microsoft Corp. | 0.12 | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.18 | 0.20 | 0.24 | 0.27 | 0.28 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.27 | 0.29 | 0.29 | — | — | — | — | |||||||
| Oracle Corp. | 0.80 | 0.81 | 0.81 | 0.84 | 0.85 | 0.87 | 0.89 | 0.91 | 0.94 | 0.96 | 0.97 | 0.99 | 1.03 | 1.05 | 1.07 | 1.09 | 1.12 | 1.15 | 1.02 | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.04 | 0.05 | 0.05 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.07 | 0.04 | 0.04 | 0.04 | 0.09 | 0.12 | 0.15 | 0.21 | 0.26 | 0.33 | 0.51 | 0.56 | 0.76 | 0.84 | 0.89 | 0.95 | 0.92 | 0.97 | 0.88 | — | — | — | — | |||||||
| Salesforce Inc. | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.20 | 0.23 | 0.13 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.40 | 0.17 | 0.16 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.21 | 0.22 | 0.23 | 0.24 | 0.24 | 0.29 | 0.31 | 0.32 | 0.34 | 0.36 | — | — | — | — | |||||||
| Synopsys Inc. | 0.26 | 0.26 | 0.26 | 0.34 | 0.35 | 0.52 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.10 | 0.11 | 0.12 | 0.12 | 0.12 | |||||||
| Workday Inc. | 0.30 | 0.29 | 0.28 | 0.27 | 0.28 | 0.29 | 0.29 | 0.29 | 0.33 | 0.34 | 0.35 | 0.37 | 0.38 | 0.46 | 0.48 | 0.32 | 0.34 | 0.36 | 0.39 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-28), 10-Q (reporting date: 2026-05-29), 10-Q (reporting date: 2026-02-27), 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05).
1 Q3 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 6,762 ÷ 18,526 = 0.37
2 Click competitor name to see calculations.
The company's solvency profile transitioned from a period of strategic deleveraging between 2021 and 2023 to a phase of increased leverage starting in early 2024. This shift is characterized by a significant increase in total debt coinciding with a stabilizing or slightly contracting capital base, resulting in a higher debt-to-capital ratio over the analyzed period.
- Total Debt Trends
- Total debt, including operating lease liabilities, experienced a gradual decline from March 2021 through December 2023, moving from $4,707 million to a low of $4,080 million. A sharp inflection point occurred in March 2024, where debt surged to $6,090 million. This upward trajectory continued through 2025 and early 2026, peaking at $7,065 million in May 2026 before slightly receding to $6,762 million by August 2026.
- Total Capital Dynamics
- Total capital showed moderate growth and volatility in the first half of the period, reaching a peak of $20,598 million in December 2023. Following this peak, total capital entered a contraction phase, declining to approximately $18,011 million by May 2025. The capital base remained relatively stagnant between $18,000 million and $18,600 million through August 2026.
- Debt-to-Capital Ratio Analysis
- The debt-to-capital ratio reflects a distinct two-phase movement. From March 2021 to September 2023, the ratio trended downward from 0.26 to a minimum of 0.20, indicating an improvement in solvency and a reduction in financial leverage. However, starting in March 2024, the ratio rose sharply to 0.29 and maintained a consistent upward trend, reaching a maximum of 0.38 in May 2026. This increase was driven by the simultaneous rise in total debt and the reduction in total capital, signaling a higher reliance on debt relative to the company's overall capital structure.
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Debt to Assets
Adobe Inc., debt to assets calculation (quarterly data)
| Aug 28, 2026 | May 29, 2026 | Feb 27, 2026 | Nov 28, 2025 | Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | Nov 29, 2024 | Aug 30, 2024 | May 31, 2024 | Mar 1, 2024 | Dec 1, 2023 | Sep 1, 2023 | Jun 2, 2023 | Mar 3, 2023 | Dec 2, 2022 | Sep 2, 2022 | Jun 3, 2022 | Mar 4, 2022 | Dec 3, 2021 | Sep 3, 2021 | Jun 4, 2021 | Mar 5, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Debt, current portion | 1,597) | 1,843) | 849) | —) | —) | —) | —) | 1,499) | 1,499) | 1,498) | 1,497) | —) | —) | —) | —) | 500) | 500) | 499) | 499) | —) | —) | —) | —) | |||||||
| Debt, excluding current portion | 4,766) | 4,802) | 5,379) | 6,210) | 6,200) | 6,166) | 6,155) | 4,129) | 4,128) | 4,127) | 2,138) | 3,634) | 3,633) | 3,631) | 3,630) | 3,629) | 3,627) | 3,627) | 3,626) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Total debt | 6,363) | 6,645) | 6,228) | 6,210) | 6,200) | 6,166) | 6,155) | 5,628) | 5,627) | 5,625) | 3,635) | 3,634) | 3,633) | 3,631) | 3,630) | 4,129) | 4,127) | 4,126) | 4,125) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Total assets | 29,981) | 29,933) | 29,704) | 29,496) | 28,754) | 28,107) | 29,955) | 30,230) | 29,830) | 30,007) | 28,751) | 29,779) | 29,090) | 27,838) | 26,667) | 27,165) | 26,744) | 26,326) | 25,976) | 27,241) | 26,144) | 25,582) | 24,985) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to assets1 | 0.21 | 0.22 | 0.21 | 0.21 | 0.22 | 0.22 | 0.21 | 0.19 | 0.19 | 0.19 | 0.13 | 0.12 | 0.12 | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.02 | 0.03 | 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 | |||||||
| AppLovin Corp. | — | 0.43 | 0.46 | 0.48 | 0.55 | 0.59 | 0.65 | 0.60 | 0.64 | 0.67 | 0.67 | 0.58 | 0.62 | 0.58 | 0.54 | 0.55 | 0.55 | 0.54 | 0.52 | — | — | — | — | |||||||
| Cadence Design Systems Inc. | — | 0.21 | 0.24 | 0.24 | 0.26 | 0.26 | 0.27 | 0.28 | 0.31 | 0.19 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.15 | 0.16 | 0.08 | 0.08 | — | — | — | — | |||||||
| Datadog Inc. | — | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.27 | 0.28 | 0.16 | 0.17 | 0.18 | 0.19 | 0.21 | 0.22 | 0.24 | 0.25 | 0.26 | 0.28 | 0.29 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 0.41 | 0.42 | 0.40 | 0.43 | 0.43 | 0.43 | 0.40 | 0.42 | 0.42 | 0.43 | 0.42 | 0.43 | 0.43 | 0.44 | 0.40 | 0.40 | 0.39 | 0.41 | — | — | — | — | |||||||
| Intuit Inc. | 0.16 | 0.18 | 0.18 | 0.16 | 0.18 | 0.20 | 0.18 | 0.19 | 0.19 | 0.20 | 0.21 | 0.22 | 0.23 | 0.26 | 0.26 | 0.25 | 0.24 | 0.26 | 0.14 | — | — | — | — | |||||||
| Microsoft Corp. | 0.06 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.10 | 0.14 | 0.16 | 0.16 | 0.11 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.16 | 0.16 | — | — | — | — | |||||||
| Oracle Corp. | 0.55 | 0.53 | 0.51 | 0.55 | 0.60 | 0.60 | 0.59 | 0.62 | 0.64 | 0.66 | 0.65 | 0.67 | 0.70 | 0.71 | 0.70 | 0.69 | 0.72 | 0.73 | 0.67 | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 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 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.03 | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | 0.05 | 0.06 | 0.10 | 0.13 | 0.14 | 0.26 | 0.28 | 0.29 | 0.30 | 0.33 | 0.35 | 0.35 | — | — | — | — | |||||||
| Salesforce Inc. | 0.09 | 0.09 | 0.09 | 0.08 | 0.09 | 0.09 | 0.10 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.11 | 0.11 | 0.11 | 0.12 | 0.15 | 0.04 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.24 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.13 | 0.14 | — | — | — | — | |||||||
| Synopsys Inc. | 0.21 | 0.21 | 0.21 | 0.28 | 0.30 | 0.42 | 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 | 0.01 | 0.01 | 0.01 | 0.02 | |||||||
| Workday Inc. | 0.17 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.18 | 0.21 | 0.22 | 0.22 | 0.22 | 0.24 | 0.31 | 0.32 | 0.18 | 0.20 | 0.20 | 0.22 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-28), 10-Q (reporting date: 2026-05-29), 10-Q (reporting date: 2026-02-27), 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05).
1 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,363 ÷ 29,981 = 0.21
2 Click competitor name to see calculations.
The analysis of solvency metrics reveals a three-stage evolution in the capital structure, characterized by an initial period of stability, a brief reduction in leverage, and a subsequent significant increase in debt relative to total assets.
- Debt Accumulation Patterns
- Total debt remained remarkably static between March 2021 and December 2022, hovering around 4.1 billion USD. A notable reduction occurred in March 2023, where debt levels dropped to approximately 3.6 billion USD and remained stable for one year. However, a sharp inflection point is observed in May 2024, where debt increased to 5.6 billion USD, continuing an upward trajectory to a peak of 6.6 billion USD by May 2026, before a slight correction to 6.3 billion USD in August 2026.
- Asset Base Evolution
- Total assets exhibited a general growth trend from 24.9 billion USD in March 2021 to a peak of 30.2 billion USD in November 2024. While there were intermittent fluctuations, including a dip to 28.1 billion USD in May 2025, the asset base largely stabilized within the 28 billion to 30 billion USD range throughout the latter half of the analyzed period.
- Debt to Assets Ratio Interpretation
- The solvency ratio reflects the interplay between the rising debt and the expanding asset base. From March 2021 to December 2022, the ratio was stable between 0.15 and 0.16. It reached its lowest point of 0.12 in late 2023, coinciding with the reduction in total debt and the growth of assets. This trend reversed abruptly in May 2024, as the ratio climbed to 0.19 and eventually peaked at 0.22 in May 2025 and May 2026. The current trajectory indicates a higher reliance on debt financing compared to the 2021-2023 period, though the ratio remains relatively low in absolute terms.
Overall, the financial position shifted from a conservative leverage profile to a more aggressive one starting in mid-2024. The increase in the debt-to-assets ratio is primarily driven by the expansion of total debt rather than a contraction of the asset base, suggesting a deliberate strategic increase in borrowed capital.
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Debt to Assets (including Operating Lease Liability)
Adobe Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Aug 28, 2026 | May 29, 2026 | Feb 27, 2026 | Nov 28, 2025 | Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Debt, current portion | 1,597) | 1,843) | 849) | —) | —) | —) | —) | 1,499) | 1,499) | 1,498) | 1,497) | —) | —) | —) | —) | 500) | 500) | 499) | 499) | —) | —) | —) | —) | |||||||
| Debt, excluding current portion | 4,766) | 4,802) | 5,379) | 6,210) | 6,200) | 6,166) | 6,155) | 4,129) | 4,128) | 4,127) | 2,138) | 3,634) | 3,633) | 3,631) | 3,630) | 3,629) | 3,627) | 3,627) | 3,626) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Total debt | 6,363) | 6,645) | 6,228) | 6,210) | 6,200) | 6,166) | 6,155) | 5,628) | 5,627) | 5,625) | 3,635) | 3,634) | 3,633) | 3,631) | 3,630) | 4,129) | 4,127) | 4,126) | 4,125) | 4,123) | 4,122) | 4,120) | 4,119) | |||||||
| Current operating lease liabilities | 89) | 91) | 84) | 77) | 74) | 74) | 74) | 75) | 70) | 67) | 73) | 73) | 74) | 74) | 81) | 87) | 88) | 90) | 93) | 97) | 97) | 96) | 94) | |||||||
| Long-term operating lease liabilities | 310) | 329) | 344) | 361) | 362) | 323) | 334) | 353) | 381) | 398) | 378) | 373) | 389) | 408) | 415) | 417) | 426) | 442) | 447) | 453) | 466) | 477) | 494) | |||||||
| Total debt (including operating lease liability) | 6,762) | 7,065) | 6,656) | 6,648) | 6,636) | 6,563) | 6,563) | 6,056) | 6,078) | 6,090) | 4,086) | 4,080) | 4,096) | 4,113) | 4,126) | 4,633) | 4,641) | 4,658) | 4,665) | 4,673) | 4,685) | 4,693) | 4,707) | |||||||
| Total assets | 29,981) | 29,933) | 29,704) | 29,496) | 28,754) | 28,107) | 29,955) | 30,230) | 29,830) | 30,007) | 28,751) | 29,779) | 29,090) | 27,838) | 26,667) | 27,165) | 26,744) | 26,326) | 25,976) | 27,241) | 26,144) | 25,582) | 24,985) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.23 | 0.24 | 0.22 | 0.23 | 0.23 | 0.23 | 0.22 | 0.20 | 0.20 | 0.20 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.17 | 0.17 | 0.18 | 0.18 | 0.17 | 0.18 | 0.18 | 0.19 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 0.12 | 0.12 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.07 | 0.08 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | |||||||
| Datadog Inc. | — | 0.17 | 0.18 | 0.19 | 0.21 | 0.22 | 0.31 | 0.32 | 0.21 | 0.22 | 0.23 | 0.23 | 0.25 | 0.27 | 0.27 | 0.28 | 0.30 | 0.31 | 0.32 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 0.43 | 0.45 | 0.43 | 0.45 | 0.46 | 0.46 | 0.43 | 0.45 | 0.45 | 0.46 | 0.44 | 0.45 | 0.46 | 0.46 | 0.42 | 0.43 | 0.42 | 0.43 | — | — | — | — | |||||||
| Intuit Inc. | 0.17 | 0.20 | 0.20 | 0.18 | 0.19 | 0.22 | 0.20 | 0.20 | 0.20 | 0.22 | 0.22 | 0.24 | 0.25 | 0.28 | 0.28 | 0.27 | 0.25 | 0.27 | 0.16 | — | — | — | — | |||||||
| Microsoft Corp. | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.12 | 0.12 | 0.13 | 0.17 | 0.19 | 0.19 | 0.15 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.19 | 0.19 | — | — | — | — | |||||||
| Oracle Corp. | 0.62 | 0.61 | 0.58 | 0.62 | 0.60 | 0.60 | 0.59 | 0.62 | 0.64 | 0.66 | 0.65 | 0.67 | 0.70 | 0.71 | 0.70 | 0.69 | 0.72 | 0.73 | 0.67 | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.03 | 0.04 | 0.04 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 0.04 | 0.01 | 0.01 | 0.01 | 0.03 | 0.04 | 0.05 | 0.07 | 0.09 | 0.12 | 0.15 | 0.16 | 0.28 | 0.30 | 0.32 | 0.32 | 0.36 | 0.38 | 0.38 | — | — | — | — | |||||||
| Salesforce Inc. | 0.12 | 0.12 | 0.12 | 0.11 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.19 | 0.09 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 0.27 | 0.10 | 0.09 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.13 | 0.13 | 0.15 | 0.15 | 0.16 | 0.17 | 0.19 | 0.19 | 0.20 | — | — | — | — | |||||||
| Synopsys Inc. | 0.23 | 0.23 | 0.23 | 0.30 | 0.31 | 0.45 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | |||||||
| Workday Inc. | 0.21 | 0.21 | 0.20 | 0.19 | 0.20 | 0.21 | 0.21 | 0.20 | 0.24 | 0.24 | 0.25 | 0.24 | 0.26 | 0.33 | 0.34 | 0.20 | 0.23 | 0.24 | 0.25 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-28), 10-Q (reporting date: 2026-05-29), 10-Q (reporting date: 2026-02-27), 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05).
1 Q3 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 6,762 ÷ 29,981 = 0.23
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits three distinct phases characterized by an initial period of leverage reduction, a period of stability at low debt levels, and a subsequent increase in total liabilities starting in mid-2024.
- Debt Accumulation and Repayment Trends
- Between March 2021 and March 2023, total debt, including operating lease liabilities, followed a consistent downward trajectory, decreasing from 4,707 million USD to 4,126 million USD. This trend of debt reduction continued through March 2024, reaching a low of 4,086 million USD. However, a significant shift occurred in May 2024, where debt levels rose sharply to 6,090 million USD. This upward trend persisted through February 2026, peaking at 7,065 million USD before correcting slightly to 6,762 million USD by August 2026.
- Asset Base Expansion
- Total assets demonstrated a general growth pattern over the analyzed period. Assets grew from 24,985 million USD in March 2021 to a peak of 30,230 million USD in November 2024. While there were periodic fluctuations, such as a dip to 28,107 million USD in May 2025, the asset base remained relatively stable between 28,000 million USD and 30,000 million USD during the final two years of the period.
- Debt to Assets Ratio Analysis
- The debt to assets ratio reflects the interplay between rising assets and fluctuating debt levels. The ratio initially compressed from 0.19 in March 2021 to a minimum of 0.14 by December 2023, indicating an improvement in solvency and a reduction in financial leverage. This trend reversed abruptly in May 2024, as the ratio climbed to 0.20. In the final phase, the ratio fluctuated between 0.22 and 0.24, concluding at 0.23 in August 2026. This represents a higher level of leverage compared to the start of the period, driven primarily by the substantial increase in total debt rather than a contraction of the asset base.
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Financial Leverage
Adobe Inc., financial leverage calculation (quarterly data)
| Aug 28, 2026 | May 29, 2026 | Feb 27, 2026 | Nov 28, 2025 | Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Total assets | 29,981) | 29,933) | 29,704) | 29,496) | 28,754) | 28,107) | 29,955) | 30,230) | 29,830) | 30,007) | 28,751) | 29,779) | 29,090) | 27,838) | 26,667) | 27,165) | 26,744) | 26,326) | 25,976) | 27,241) | 26,144) | 25,582) | 24,985) | |||||||
| Stockholders’ equity | 11,764) | 11,518) | 11,433) | 11,623) | 11,770) | 11,448) | 13,095) | 14,105) | 14,545) | 14,843) | 15,460) | 16,518) | 15,776) | 14,838) | 14,206) | 14,051) | 14,373) | 13,985) | 13,775) | 14,797) | 14,414) | 13,852) | 13,546) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Financial leverage1 | 2.55 | 2.60 | 2.60 | 2.54 | 2.44 | 2.46 | 2.29 | 2.14 | 2.05 | 2.02 | 1.86 | 1.80 | 1.84 | 1.88 | 1.88 | 1.93 | 1.86 | 1.88 | 1.89 | 1.84 | 1.81 | 1.85 | 1.84 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 2.16 | 2.15 | 2.10 | 2.10 | 2.07 | 2.05 | 2.05 | 1.98 | 1.95 | 1.89 | 1.93 | 1.99 | 1.98 | 2.01 | 2.05 | 2.14 | 2.16 | 2.16 | 2.15 | 2.21 | 2.18 | 2.18 | 2.14 | |||||||
| AppLovin Corp. | — | 2.61 | 3.26 | 3.40 | 4.30 | 5.11 | 9.92 | 5.39 | 5.80 | 6.47 | 6.92 | 4.27 | 4.57 | 3.61 | 3.12 | 3.07 | 3.08 | 3.11 | 3.06 | — | — | — | — | |||||||
| Cadence Design Systems Inc. | — | 1.76 | 1.84 | 1.85 | 1.85 | 1.90 | 1.89 | 1.92 | 2.01 | 1.70 | 1.60 | 1.67 | 1.74 | 1.77 | 1.76 | 1.87 | 1.83 | 1.66 | 1.59 | — | — | — | — | |||||||
| Datadog Inc. | — | 1.73 | 1.74 | 1.78 | 1.76 | 1.82 | 2.06 | 2.13 | 1.76 | 1.83 | 1.88 | 1.94 | 1.96 | 2.01 | 2.08 | 2.13 | 2.17 | 2.18 | 2.26 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 4.41 | 4.74 | 4.65 | 5.24 | 5.40 | 5.42 | 5.02 | 5.49 | 5.57 | 5.90 | 6.00 | 5.60 | 5.96 | 6.19 | 5.80 | 6.27 | 6.57 | 7.00 | — | — | — | — | |||||||
| Intuit Inc. | 1.91 | 1.80 | 1.72 | 1.88 | 1.82 | 1.77 | 1.83 | 1.74 | 1.68 | 1.76 | 1.68 | 1.61 | 1.64 | 1.72 | 1.69 | 1.69 | 1.68 | 1.69 | 1.53 | — | — | — | — | |||||||
| Microsoft Corp. | 1.68 | 1.70 | 1.75 | 1.80 | 1.75 | 1.76 | 1.82 | 1.91 | 1.91 | 1.97 | 2.02 | 2.00 | 1.95 | 1.99 | 2.07 | 2.19 | 2.12 | 2.13 | 2.21 | — | — | — | — | |||||||
| Oracle Corp. | 6.37 | 6.84 | 7.47 | 8.23 | 9.65 | 10.80 | 13.33 | 16.20 | 24.38 | 34.74 | 57.66 | 125.24 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | 1.19 | 1.21 | 1.20 | 1.23 | 1.24 | 1.24 | 1.27 | 1.28 | 1.28 | 1.27 | 1.30 | 1.31 | 1.35 | 1.35 | 1.35 | 1.39 | 1.40 | 1.40 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 1.67 | 2.66 | 2.72 | 3.01 | 3.04 | 3.29 | 3.45 | 3.87 | 4.01 | 4.20 | 6.82 | 8.29 | 11.50 | 18.06 | 24.69 | 58.35 | 32.88 | 88.29 | 20.09 | — | — | — | — | |||||||
| Salesforce Inc. | 1.59 | 1.59 | 1.63 | 1.68 | 1.56 | 1.60 | 1.61 | 1.67 | 1.57 | 1.59 | 1.63 | 1.69 | 1.55 | 1.57 | 1.58 | 1.64 | 1.53 | 1.60 | 1.52 | — | — | — | — | |||||||
| ServiceNow Inc. | — | 2.53 | 2.08 | 2.01 | 1.93 | 2.02 | 2.07 | 2.12 | 1.98 | 2.10 | 2.16 | 2.28 | 2.10 | 2.15 | 2.43 | 2.64 | 2.46 | 2.65 | 2.75 | — | — | — | — | |||||||
| Synopsys Inc. | 1.53 | 1.54 | 1.55 | 1.70 | 1.75 | 2.40 | 1.40 | 1.45 | 1.51 | 1.54 | 1.58 | 1.68 | 1.67 | 1.68 | 1.70 | 1.71 | 1.66 | 1.66 | 1.65 | 1.65 | 1.65 | 1.64 | 1.64 | |||||||
| Workday Inc. | 2.00 | 1.96 | 1.93 | 1.99 | 1.90 | 1.95 | 1.95 | 2.04 | 2.10 | 2.19 | 2.23 | 2.41 | 2.29 | 2.58 | 2.68 | 2.31 | 2.24 | 2.36 | 2.53 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-28), 10-Q (reporting date: 2026-05-29), 10-Q (reporting date: 2026-02-27), 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05).
1 Q3 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 29,981 ÷ 11,764 = 2.55
2 Click competitor name to see calculations.
The financial structure of the organization shifted from a period of relative stability to a phase of increasing leverage between March 2021 and August 2026. For the first three years of the observed period, the financial leverage ratio remained constrained within a narrow range of 1.80 to 1.93. Beginning in early 2024, however, a sustained upward trend emerged, with the ratio climbing from 1.86 in December 2023 to a peak of 2.60 in early 2026, before settling slightly at 2.55 by August 2026.
- Total Asset Trends
- Total assets exhibited gradual growth from US$ 24,985 million in March 2021 to a peak of US$ 30,230 million in November 2024. Following this period, assets remained relatively stable, fluctuating between US$ 28,107 million and US$ 29,981 million through August 2026, suggesting a consistent asset base during the latter part of the period.
- Stockholders' Equity Dynamics
- Stockholders' equity underwent two distinct phases. An initial expansion phase saw equity increase from US$ 13,546 million in March 2021 to a maximum of US$ 16,518 million by December 2023. This was followed by a significant contraction, with equity declining to US$ 11,448 million by May 2025 and remaining within the US$ 11,400 million to US$ 11,700 million range through August 2026.
- Financial Leverage Interpretation
- The increase in the financial leverage ratio is directly attributable to the contraction of stockholders' equity while total assets remained largely stable or grew. The transition from a ratio of 1.86 in December 2023 to 2.55 in August 2026 indicates a fundamental shift in the capital structure, characterized by a reduced equity cushion relative to total assets. This trend reflects a higher reliance on liabilities to fund the asset base, marking a clear departure from the balanced leverage profile maintained between 2021 and 2023.
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Interest Coverage
Adobe Inc., interest coverage calculation (quarterly data)
| Aug 28, 2026 | May 29, 2026 | Feb 27, 2026 | Nov 28, 2025 | Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income | 1,827) | 1,712) | 1,889) | 1,856) | 1,772) | 1,691) | 1,811) | 1,683) | 1,684) | 1,573) | 620) | 1,483) | 1,403) | 1,295) | 1,247) | 1,176) | 1,136) | 1,178) | 1,266) | 1,233) | 1,212) | 1,116) | 1,261) | |||||||
| Add: Income tax expense | 530) | 526) | 533) | 408) | 415) | 410) | 371) | 308) | 358) | 357) | 348) | 325) | 340) | 355) | 351) | 341) | 320) | 314) | 277) | 235) | 206) | 270) | 172) | |||||||
| Add: Interest expense | 66) | 65) | 63) | 66) | 67) | 68) | 62) | 50) | 51) | 41) | 27) | 28) | 27) | 26) | 32) | 28) | 28) | 28) | 28) | 28) | 27) | 28) | 30) | |||||||
| Earnings before interest and tax (EBIT) | 2,423) | 2,303) | 2,485) | 2,330) | 2,254) | 2,169) | 2,244) | 2,041) | 2,093) | 1,971) | 995) | 1,836) | 1,770) | 1,676) | 1,630) | 1,545) | 1,484) | 1,520) | 1,571) | 1,496) | 1,445) | 1,414) | 1,463) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Interest coverage1 | 36.70 | 35.91 | 34.99 | 34.21 | 35.26 | 37.00 | 40.93 | 42.01 | 46.90 | 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 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||||
| Accenture PLC | 41.06 | 40.77 | 39.97 | 45.94 | 57.86 | 80.38 | 135.71 | 165.48 | 175.20 | 175.18 | 168.23 | 193.31 | 220.23 | 212.89 | 217.31 | 195.34 | 188.01 | 133.08 | 133.32 | 131.46 | 126.89 | 196.99 | 191.96 | |||||||
| AppLovin Corp. | — | 26.42 | 23.36 | 20.09 | 13.86 | 10.72 | 8.08 | 5.95 | 5.19 | 3.95 | 3.37 | 2.38 | 1.52 | 1.12 | 0.76 | -0.19 | 0.25 | 0.19 | 0.02 | — | — | — | — | |||||||
| Cadence Design Systems Inc. | — | 15.57 | 14.39 | 14.06 | 13.53 | 13.50 | 15.95 | 19.37 | 24.99 | 33.48 | 36.67 | 36.43 | 32.16 | 34.13 | 38.63 | 46.58 | 57.84 | 58.34 | 52.92 | — | — | — | — | |||||||
| Datadog Inc. | — | 18.53 | 14.75 | 12.49 | 12.47 | 15.42 | 22.90 | 29.85 | 37.27 | 33.23 | 24.08 | 10.56 | -1.85 | -5.72 | -4.15 | -1.30 | 0.81 | 1.72 | 1.24 | — | — | — | — | |||||||
| International Business Machines Corp. | — | 6.41 | 6.41 | 6.34 | 6.05 | 4.44 | 4.39 | 4.39 | 4.69 | 6.33 | 6.21 | 6.41 | 6.44 | 2.34 | 2.25 | 1.95 | 1.59 | 6.01 | 5.40 | — | — | — | — | |||||||
| Intuit Inc. | 24.85 | 23.55 | 22.15 | 20.57 | 18.45 | 16.48 | 15.76 | 15.67 | 15.74 | 14.07 | 13.20 | 13.05 | 14.66 | 16.17 | 19.99 | 32.38 | 55.36 | 62.71 | 93.29 | — | — | — | — | |||||||
| Oracle Corp. | 5.43 | 5.51 | 4.94 | 4.96 | 4.96 | 4.81 | 4.60 | 4.34 | 4.08 | 3.88 | 3.74 | 3.60 | 3.96 | 4.41 | 3.33 | 3.78 | 3.98 | 4.23 | 6.06 | — | — | — | — | |||||||
| Palantir Technologies Inc. | — | — | — | — | — | — | — | — | 3,786.90 | 499.52 | 149.97 | 69.33 | 34.43 | -5.32 | -49.82 | -87.97 | -176.15 | -201.09 | -194.27 | — | — | — | — | |||||||
| Palo Alto Networks Inc. | 6,985.00 | 2,071.33 | 911.61 | 532.90 | 427.74 | 269.85 | 163.77 | 120.07 | 72.96 | 46.08 | 35.96 | 21.82 | 10.40 | 4.05 | -1.99 | -6.56 | -4.28 | -3.42 | -2.65 | — | — | — | — | |||||||
| Salesforce Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Synopsys Inc. | 3.08 | 2.26 | 2.97 | 4.12 | 5.50 | 11.64 | 31.24 | 44.06 | 78.90 | 174.76 | 852.56 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-28), 10-Q (reporting date: 2026-05-29), 10-Q (reporting date: 2026-02-27), 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05).
1 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (2,423 + 2,303 + 2,485 + 2,330)
÷ (66 + 65 + 63 + 66)
= 36.70
2 Click competitor name to see calculations.
The solvency profile exhibits a distinct two-phase trajectory characterized by an initial period of strengthening followed by a contraction in the interest coverage ratio. While earnings capacity grew over the long term, a significant increase in interest obligations starting in 2024 reversed earlier gains in coverage strength.
- Earnings Before Interest and Tax (EBIT) Trends
- EBIT demonstrates a general upward trajectory, rising from 1,463 million in March 2021 to 2,423 million by August 2026. Despite a sharp, isolated decline to 995 million in March 2024, the earnings capacity recovered rapidly and maintained a growth trend, indicating strong core operational profitability.
- Interest Expense Evolution
- Interest expenses remained remarkably stable between 26 million and 32 million from March 2021 through December 2023. A structural shift occurred in May 2024, where expenses jumped to 41 million and continued to climb, peaking at 68 million in May 2025. By August 2026, interest costs stabilized at a higher plateau of approximately 66 million, representing more than double the costs seen in the 2021-2023 period.
- Interest Coverage Ratio Analysis
- The interest coverage ratio increased steadily from 42.50 in March 2021 to a peak of 61.17 in December 2023, reflecting a period of expanding solvency margins. This trend reversed sharply between December 2023 and November 2025, with the ratio declining to 34.21. This deterioration was primarily driven by the surge in interest expenses, which outpaced the growth in EBIT during this window. A marginal recovery is noted in 2026, with the ratio ending at 36.70 in August 2026.
- Solvency Synthesis
- The analysis indicates that while the company remains comfortably able to service its debt—maintaining a ratio well above 1.0—the margin of safety has diminished. The transition from a peak coverage of 61.17 to a current level of 36.70 highlights a shift in the balance between operating income and financing costs, suggesting increased leverage or higher borrowing costs in the latter half of the observed period.
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