Question: Adobe Inc. Data for the year ended December 31, 2023: Item Amount Total Assets $1,600,000,000 Total Liabilities $1,000,000,000 Shareholders' Equity $600,000,000 Revenue $900,000,000 Operating
Adobe Inc.
Data for the year ended December 31, 2023:
Item | Amount |
Total Assets | $1,600,000,000 |
Total Liabilities | $1,000,000,000 |
Shareholders' Equity | $600,000,000 |
Revenue | $900,000,000 |
Operating Expenses | $550,000,000 |
Requirements:
- Calculate Adobe's debt-to-equity ratio.
- Determine Adobe's net profit margin.
- Analyze the impact of total assets on Adobe's financial leverage.
- Discuss how Adobe recognizes revenue from software subscriptions.
- Evaluate Adobe's financial health using the interest coverage ratio.
- Explain the role of the Income Measurement Objective in Adobe’s financial performance and strategic planning.
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