Calculate the debt-to-equity ratio and times interest earned ratio for the company for the latest...

Question

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.

Neenisha · Accepted Answer

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 0.

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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