Microsoft Excel LibreOffice Calc

Long-term Debt and Solvency Analysis

Difficulty: Beginner


Ratios (Summary)

Adobe Systems Inc., debt and solvency ratios

Microsoft Excel LibreOffice Calc
Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014 Nov 29, 2013 Nov 30, 2012
Debt to equity 0.22 0.26 0.27 0.22 0.23 0.23
Debt to capital 0.18 0.20 0.21 0.18 0.18 0.18
Interest coverage 29.73 21.37 14.61 7.05 6.28 17.58

Source: Based on data from Adobe Systems Inc. Annual Reports

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Adobe Systems Inc.'s debt-to-equity ratio improved from 2015 to 2016 and from 2016 to 2017.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Adobe Systems Inc.'s debt-to-capital ratio improved from 2015 to 2016 and from 2016 to 2017.
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Adobe Systems Inc.'s interest coverage ratio improved from 2015 to 2016 and from 2016 to 2017.

Debt to Equity

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

Microsoft Excel LibreOffice Calc
Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014 Nov 29, 2013 Nov 30, 2012
Selected Financial Data (USD $ in thousands)
Debt and capital lease obligations, current portion 603,229  14,676  11,217 
Debt and capital lease obligations, excluding current portion 1,881,421  1,902,068  1,907,231  911,086  1,499,297  1,496,938 
Total debt 1,881,421  1,902,068  1,907,231  1,514,315  1,513,973  1,508,155 
Stockholders' equity 8,459,869  7,424,835  7,001,580  6,775,905  6,724,634  6,665,182 
Ratio
Debt to equity1 0.22 0.26 0.27 0.22 0.23 0.23
Benchmarks
Debt to Equity, Competitors
Alphabet Inc. 0.03 0.03 0.04 0.05 0.06
Facebook Inc. 0.00 0.01 0.03
International Business Machines Corp. 2.66 2.31 2.80 3.44 1.74
Microsoft Corp. 1.19 0.75 0.44 0.25 0.20
Oracle Corp. 1.08 0.93 0.86 0.52 0.41
salesforce.com inc. 0.27 0.26 0.34 0.62 0.22
Debt to Equity, Sector
Software & Computer Services 0.51 0.42 0.39 0.32 0.32
Debt to Equity, Industry
Technology 0.60 0.49 0.45 0.32 0.27

Source: Based on data from Adobe Systems Inc. Annual Reports

2017 Calculations

1 Debt to equity = Total debt ÷ Stockholders' equity
= 1,881,421 ÷ 8,459,869 = 0.22

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Adobe Systems Inc.'s debt-to-equity ratio improved from 2015 to 2016 and from 2016 to 2017.

Debt to Capital

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

Microsoft Excel LibreOffice Calc
Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014 Nov 29, 2013 Nov 30, 2012
Selected Financial Data (USD $ in thousands)
Debt and capital lease obligations, current portion 603,229  14,676  11,217 
Debt and capital lease obligations, excluding current portion 1,881,421  1,902,068  1,907,231  911,086  1,499,297  1,496,938 
Total debt 1,881,421  1,902,068  1,907,231  1,514,315  1,513,973  1,508,155 
Stockholders' equity 8,459,869  7,424,835  7,001,580  6,775,905  6,724,634  6,665,182 
Total capital 10,341,290  9,326,903  8,908,811  8,290,220  8,238,607  8,173,337 
Ratio
Debt to capital1 0.18 0.20 0.21 0.18 0.18 0.18
Benchmarks
Debt to Capital, Competitors
Alphabet Inc. 0.03 0.03 0.04 0.05 0.06
Facebook Inc. 0.00 0.01 0.03
International Business Machines Corp. 0.73 0.70 0.74 0.77 0.64
Microsoft Corp. 0.54 0.43 0.31 0.20 0.17
Oracle Corp. 0.52 0.48 0.46 0.34 0.29
salesforce.com inc. 0.21 0.21 0.26 0.38 0.18
Debt to Capital, Sector
Software & Computer Services 0.34 0.30 0.28 0.24 0.24
Debt to Capital, Industry
Technology 0.37 0.33 0.31 0.24 0.21

Source: Based on data from Adobe Systems Inc. Annual Reports

2017 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 1,881,421 ÷ 10,341,290 = 0.18

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Adobe Systems Inc.'s debt-to-capital ratio improved from 2015 to 2016 and from 2016 to 2017.

Interest Coverage

Adobe Systems Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014 Nov 29, 2013 Nov 30, 2012
Selected Financial Data (USD $ in thousands)
Net income 1,693,954  1,168,782  629,551  268,395  289,985  832,775 
Add: Income tax expense 443,687  266,356  244,230  92,981  66,156  286,019 
Add: Interest expense 74,402  70,442  64,184  59,732  67,508  67,487 
Earnings before interest and tax (EBIT) 2,212,043  1,505,580  937,965  421,108  423,649  1,186,281 
Ratio
Interest coverage1 29.73 21.37 14.61 7.05 6.28 17.58
Benchmarks
Interest Coverage, Competitors
Alphabet Inc. 250.48 195.76 189.95 171.88 175.65
Facebook Inc. 3,433.33 1,252.80 270.30 214.48 50.18
International Business Machines Corp. 19.56 20.60 35.09 42.31 49.58
Microsoft Corp. 11.42 16.89 24.70 47.60 64.06
Oracle Corp. 7.47 8.88 12.33 16.10 18.58
salesforce.com inc. 1.29 1.89 -1.91 -3.64 -3.13
Interest Coverage, Sector
Software & Computer Services 20.57 23.62 28.82 38.14 42.85
Interest Coverage, Industry
Technology 21.58 24.52 38.08 46.46 50.27

Source: Based on data from Adobe Systems Inc. Annual Reports

2017 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= 2,212,043 ÷ 74,402 = 29.73

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Adobe Systems Inc.'s interest coverage ratio improved from 2015 to 2016 and from 2016 to 2017.