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Adobe (ADBE) Interest Coverage : 70.63 (As of Feb. 2024)


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What is Adobe Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Adobe's Operating Income for the three months ended in Feb. 2024 was $1,907 Mil. Adobe's Interest Expense for the three months ended in Feb. 2024 was $-27 Mil. Adobe's interest coverage for the quarter that ended in Feb. 2024 was 70.63. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Adobe's Interest Coverage or its related term are showing as below:

ADBE' s Interest Coverage Range Over the Past 10 Years
Min: 7.24   Med: 30.53   Max: 64.55
Current: 64.55


ADBE's Interest Coverage is ranked better than
60.74% of 1615 companies
in the Software industry
Industry Median: 29.36 vs ADBE: 64.55

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Adobe Interest Coverage Historical Data

The historical data trend for Adobe's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Adobe Interest Coverage Chart

Adobe Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.82 36.53 51.35 54.45 58.85

Adobe Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.56 62.46 62.85 62.25 70.63

Competitive Comparison of Adobe's Interest Coverage

For the Software - Infrastructure subindustry, Adobe's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Adobe's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Adobe's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Adobe's Interest Coverage falls into.



Adobe Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Adobe's Interest Coverage for the fiscal year that ended in Nov. 2023 is calculated as

Here, for the fiscal year that ended in Nov. 2023, Adobe's Interest Expense was $-113 Mil. Its Operating Income was $6,650 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,007 Mil.

Interest Coverage=-1* Operating Income (A: Nov. 2023 )/Interest Expense (A: Nov. 2023 )
=-1*6650/-113
=58.85

Adobe's Interest Coverage for the quarter that ended in Feb. 2024 is calculated as

Here, for the three months ended in Feb. 2024, Adobe's Interest Expense was $-27 Mil. Its Operating Income was $1,907 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,516 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2024 )/Interest Expense (Q: Feb. 2024 )
=-1*1907/-27
=70.63

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Adobe  (NAS:ADBE) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Adobe Interest Coverage Related Terms

Thank you for viewing the detailed overview of Adobe's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Adobe (ADBE) Business Description

Address
345 Park Avenue, San Jose, CA, USA, 95110-2704
Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).
Executives
Mark S. Garfield officer: VP, CAO & Corp. Controller 345 PARK AVENUE, SAN JOSE CA 95110-2704
Amy Banse director 345 PARK AVENUE, SAN JOSE CA 95110
David Wadhwani officer: SVP & GM, Digital Media ADOBE INC., 345 PARK AVE, SAN JOSE CA 95110
Shantanu Narayen director, officer: President and CEO 345 PARK AVENUE, SAN JOSE CA 95110
Daniel Durn officer: EVP and CFO C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Scott Belsky officer: EVP, Chief Product Officer 345 PARK AVENUE, SAN JOSE CA 95110
Cristiano R Amon director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
John E Warnock director, other: Co-Chairman of the Board C/O ADOBE SYSTEMS INC, 345 PARK AVENUE P O BOX 2704, SAN JOSE CA 95110-2704
Dana Rao officer: EVP, Gen. Counsel & Secretary 345 PARK AVE, SAN JOSE CA 95110
Ann Lewnes officer: SVP, Chief Marketing Officer 345 PARK AVENUE, SAN JOSE CA 95110
David A Ricks director LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
M. Brett Biggs director 702 SW 8TH STREET, BENTONVILLE AR 72716
Laura Desmond director 345 PARK AVENUE, SAN JOSE CA 95110
Spencer Adam Neumann director SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Gloria Chen officer: EVP, Strategy & Growth 345 PARK AVENUE, SAN JOSE CA 95110