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Calculate the debt-to-equity ratio and times interest earned ratio for the company for the latest two years. Obtain the industry averages for these ratios and any other pertinent information...

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  • Calculate the debt-to-equity ratio and times interest earned ratio for the company for the latest two years. Obtain the industry averages for these ratios and any other pertinent information fromIBISWorld, and then analyze the results.
  • Discuss what each of these ratios tells you about the company’s use of debt and how it compares to the industry average.
  • Identify the major causes of any changes in these ratios and discuss your assessment of the company based on these changes.
  • If you were a lender, discuss whether you would you be willing to lend money to the company based on its use of debt.
Answered Same Day Jul 17, 2021

Solution

Neenisha answered on Jul 19 2021
124 Votes
ADOBE INC
Ratio Calculation
    ADOBE INC
     
    2018
    Industry Average
    2019
    Industry Average
    Debt
    $ 41,24,800
    
    $ 9,88,924
    
    Equity
    $ 93,62,114
    
    $ 1,05,30,155
    
    
    
    
    
    
    DEBT TO EQUITY
    0.44
    13.80
    0.09
    7.40
    
    
    
    
    
    Earnings Before Interest and Tax
    $ 28,40,369
    
    $ 32,68,121
    
    Interest Expense
    $ 89,242
    
    $ 1,57,214
    
    
    
    
    
    
    TIMES INTEREST EARNED RATIO
    31.83
    0.20
    20.79
    0.1
Company Ratio VS Industry Ratios
Debt to Equity Ratio of Adobe Inc is very low at...
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