Accenture PLC (NYSE:ACN)

Debt to equity ratio

The debt to equity ratio remained consistently at zero from late 2020 through early 2023, indicating no reliance on debt relative to equity during this period. Starting from mid-2023, a gradual increase was observed, reaching approximately 0.18 by mid-2025. This indicates a modest rise in leverage using debt financing.

Debt to equity ratio including operating lease liability

This ratio began around 0.19 in late 2020 and showed a steady, gradual decline until early 2023, dropping to about 0.12. Subsequently, there was a noticeable increase beginning mid-2023, peaking near 0.28, followed by a slight decrease but still maintaining higher leverage levels than the earlier years. This suggests that when operating leases are considered as liabilities, the company's relative debt exposure initially decreased but later increased significantly.

Debt to capital ratio

Debt to capital mirrored the debt to equity ratio pattern, staying at zero until early 2023 and then slowly rising to approximately 0.14 by mid-2025. The increase denotes a growing share of debt in the company's overall capital structure.

Debt to capital ratio including operating lease liability

Beginning at 0.16 in late 2020, this ratio steadily decreased to about 0.10-0.11 by early 2023, reflecting reduced leverage when leases are considered liabilities. From mid-2023 onward, an upward trend was noted reaching about 0.22 before a slight decline, indicating increased leverage partly due to lease obligations.

Debt to assets ratio

The debt to assets ratio was zero for most of the examined period until mid-2024, after which it increased to around 0.08 by mid-2025. This marks the emergence of debt financing relative to total assets in the later periods.

Debt to assets ratio including operating lease liability

Starting from about 0.09 in late 2020, this ratio gradually declined to 0.06 by early 2023. Subsequently, a clear increase occurred, reaching roughly 0.13 by mid-2025. This reflects growing liabilities when operating leases are incorporated, indicating a moderate increase in the company's obligations relative to assets.

Financial leverage

Financial leverage, measured as a ratio, showed a slight increase from around 2.14 in late 2020 to a peak near 2.21 in mid-2021. Following that peak, a gradual decline occurred until early 2024, dipping under 1.9, indicative of reduced leverage. From mid-2024 onward, the ratio trended upward again, reaching approximately 2.10 by mid-2025, suggesting a rise in the use of debt or other liabilities to finance assets.

Interest coverage ratio

The interest coverage ratio exhibited considerable volatility, starting very high at around 192 in late 2020, peaking near 220 in late 2022 and early 2023, and then steadily declining to approximately 46 by mid-2025. This falling trend indicates that the company's ability to cover interest expenses from earnings weakened substantially over time, which may reflect increasing interest burdens or declining earnings relative to interest costs.

The financial data reveals several noteworthy trends over the analyzed quarters. A pronounced and sustained increase is evident in total debt, particularly from early 2023 onward. Initially, total debt remained relatively stable and low, ranging around 55,000 to 70,000 thousand US dollars between late 2020 and early 2023. However, beginning from August 2023, total debt shows a sharp escalation, rising dramatically and peaking above 5 million thousand US dollars in subsequent quarters through mid-2025.

In contrast, shareholders’ equity demonstrates a consistent upward trajectory throughout the entire period. From just over 17.9 million thousand US dollars in late 2020, equity rises steadily each quarter, reaching above 31 million thousand US dollars by mid-2025. This steady growth indicates an ongoing expansion of the company’s net assets or retained earnings over time.

The debt to equity ratio, which had remained effectively flat and near zero for much of the earlier quarters, begins to increase significantly from August 2023 onward. Initially stable at 0.00 from 2020 to early 2023, the ratio climbs to 0.01 around mid-2023 and subsequently spikes, reaching peak values around 0.18 between early and mid-2025. This shift signals a material increase in leverage relative to shareholders’ equity, implying greater reliance on borrowed funds in the recent periods.

Total Debt

Relatively stable and low through early 2023; sharp and significant increase from August 2023 onward, escalating from tens of thousands to over five million US dollars by 2025.

Shareholders’ Equity

Consistent, steady growth throughout all quarters; increased from approximately 17.9 million to over 31 million US dollars across the period.

Debt to Equity Ratio

Minimal and stable near zero through early 2023; notable rise commencing in mid-2023, peaking around 0.18, reflecting increased financial leverage.

Overall, the data suggests that while the company’s equity base has expanded steadily, its recent financing strategy has involved substantially increased borrowing. The pronounced rise in debt and the concomitant increase in the debt to equity ratio may warrant careful monitoring for associated risks, despite the solid growth in equity values.

The analysis of the quarterly financial data reveals several key trends in the company's debt, equity, and leverage metrics over the reported periods.

Total Debt (including operating lease liability)

The total debt exhibited moderate fluctuations across the quarters. Initially, from late 2020 to early 2023, the debt decreased gradually from approximately 3.43 billion to around 3.09 billion US dollars, suggesting a conservative approach to leverage during that period. However, starting from early 2024, a significant increase occurred, with debt levels sharply rising to over 8.18 billion US dollars by mid-2025. This marked increase in debt indicates either increased borrowing or recognition of additional lease liabilities, reflecting a notable change in the company’s capital structure.

Total Accenture plc Shareholders’ Equity

Shareholders’ equity showed a consistent upward trend throughout the periods analyzed, increasing from about 17.9 billion US dollars at the end of 2020 to approximately 31.2 billion US dollars by mid-2025. This steady growth indicates accumulation of retained earnings, capital infusion, or revaluation gains, supporting the company's financial stability and providing a solid equity base despite the variations in debt levels.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio demonstrated a decreasing trend initially, dropping from 0.19 in late 2020 to as low as 0.12 by mid-2023. This decline corresponds with the reduction in total debt and growth in equity, signifying an improving leverage position and reduced financial risk during this time. However, starting in early 2024, the ratio reversed course sharply, rising to a peak of around 0.28 in early and mid-2025. This increase aligns with the surge in total debt, indicating heightened financial leverage and potentially increased risk exposure.

Overall, the company maintained a strong equity position and prudent leverage until early 2024, after which it undertook significantly higher borrowing or lease commitments, resulting in increased leverage. The implications of this shift warrant further assessment to understand the underlying strategic or operational drivers and their impact on financial risk and capital costs going forward.

The analysis of the financial data reveals several important trends in the company's capital structure and leverage over the observed periods.

Total Debt

The total debt remained relatively stable from November 2020 through May 2023, fluctuating between approximately $54 million and $69 million. However, beginning in August 2023, there was a marked and sharp increase in total debt, escalating dramatically from around $147 million to over $5.1 billion by August 2025. This represents a substantial rise in indebtedness within a relatively short timeframe, indicating a significant shift in the company's financing or investment activities.

Total Capital

Total capital demonstrated a consistent upward trajectory throughout the entire period. Starting at approximately $17.9 billion in November 2020, it increased steadily, reaching about $25.8 billion by August 2023 and continuing to grow thereafter, culminating at around $36.3 billion by August 2025. This steady growth suggests ongoing expansion and increased investment in the company’s asset base or operations.

Debt to Capital Ratio

The debt to capital ratio remained negligible and essentially flat at zero up through May 2023, indicating minimal reliance on debt financing relative to total capital. From August 2023, the ratio began to rise, starting at 0.01 and eventually reaching around 0.14-0.15 by August 2025. This change correlates with the spike in total debt and implies an increasing proportion of debt within the company’s capital structure. Despite this rise, the ratio remains moderate, suggesting debt is still a minority component of total capital but is increasing in significance.

In summary, the company exhibited a stable financial structure with low leverage for several years, followed by a notable and rapid increase in debt levels starting mid-2023. Concurrently, total capital continued to expand steadily, reflecting overall growth. The increasing debt to capital ratio points to a strategic shift towards higher leverage while maintaining a predominantly equity-based capital foundation. Monitoring the implications of this increased debt on financial risk and cost of capital will be important in future assessments.

Total Debt (including operating lease liability)

The total debt exhibits moderate fluctuations over the observed periods, ranging from approximately 3.1 billion US dollars to over 8.1 billion US dollars. Initially, from late 2020 through early 2024, the debt values show a slight decreasing trend, moving from about 3.4 billion to just above 3 billion. However, starting around May 2024, there is a significant and rapid increase in total debt, peaking beyond 8 billion US dollars by mid-2025. This marked increase suggests either increased borrowing or recognition of additional lease liabilities during this latter timeframe.

Total Capital (including operating lease liability)

Total capital shows a general upward trend throughout the time series. Beginning at just over 21.3 billion US dollars in late 2020, the capital base steadily grows to reach nearly 32.3 billion by mid-2024. Although the pace of growth slows down slightly in early 2025, capital increases again towards mid-2025, reaching approximately 39.4 billion US dollars. This consistent growth in total capital reflects an expansion of the company's asset base or equity position over the observed periods.

Debt to Capital Ratio (including operating lease liability)

The debt-to-capital ratio maintains a relatively stable and low level around 0.15 or below from late 2020 through early 2024, showing a gradual decline from 0.16 to approximately 0.10. This indicates improved leverage and a stronger capital structure over these periods. However, starting in mid-2024, the ratio rises sharply, jumping to approximately 0.14 and then moving substantially higher to around 0.22 by 2025. This upward shift correlates with the significant rise in total debt noted during the same timeframe, indicating increased leverage and possibly greater financial risk.

Overall Analysis

Over the entire period, the company demonstrates prudent management of leverage with a decreasing debt-to-capital ratio up until early 2024, reflecting strengthening financial stability. The gradual increase in total capital supports this observation. Conversely, the sharp rise in total debt and debt-to-capital ratio from mid-2024 onwards may indicate a strategic change, such as new financing initiatives or lease commitments, which amplifies leverage. This shift warrants close monitoring as it could impact the company’s financial risk profile and cost of capital going forward.

Total Debt

The total debt demonstrates relative stability with minor fluctuations from November 2020 through August 2023, remaining generally between approximately 54,000 and 70,000 thousand US dollars. However, beginning August 2023, there is a significant and abrupt increase in total debt, surging notably to over 1,678,903 thousand US dollars in November 2024 and further escalating dramatically to exceed 5 billion US dollars in the subsequent periods up to August 2025. This sharp rise indicates a substantial increase in leverage or borrowing during the last year of the data observed.

Total Assets

Total assets show a consistent upward trend throughout the entire period analyzed. Starting from approximately 38.3 billion US dollars in November 2020, assets progressively increase each quarter, reaching over 65 billion US dollars by August 2025. The growth appears steady, reflecting expansion or accumulation of resources and investments over time.

Debt to Assets Ratio

The debt to assets ratio remains effectively zero for most of the initial period, indicating that debt was negligible relative to total assets. Only by February 2024 does the ratio become measurable, showing a small increase to around 0.03 and slightly fluctuating thereafter. Starting November 2024, the ratio rises sharply, reaching approximately 0.09, consistent with the large increase in total debt. Despite this rise, the ratio remains below 0.1, suggesting that even with the increased borrowing, debt levels are still relatively moderate compared to the total asset base.

Overall Observations

The company exhibits a stable financial position with steady growth in asset base across the majority of the timeframe analyzed. The sudden and large increase in total debt near the end of the period marks a notable shift in the company's financial strategy or requirements, potentially indicating significant financing activities such as acquisitions, capital expenditures, or refinancing. Although total debt rises sharply, the corresponding debt to assets ratio remains low, suggesting that asset growth may also support this increase or that the company maintains a conservative leverage policy relative to its asset size.

The analysis of the financial data over the observed periods reveals several important trends in the company's leverage and asset growth.

Total Debt (including operating lease liability)

The total debt levels show a general stability with minor fluctuations in earlier periods, ranging approximately between 3.3 billion to 3.5 billion US dollars from late 2020 through early 2024. However, a significant increase is observed starting from May 2024, when total debt jumps sharply to over 4.6 billion and subsequently nearly doubles by the end of the data period, reaching around 8.18 billion US dollars by August 2025.

Total Assets

Total assets demonstrate a consistent upward trajectory throughout the entire timeframe, growing from roughly 38.3 billion US dollars in late 2020 to exceed 65.3 billion US dollars by August 2025. The asset base expands steadily quarter over quarter with no significant contractions, indicating ongoing asset accumulation or appreciation.

Debt to Assets Ratio (including operating lease liability)

This ratio remains relatively low and stable initially, fluctuating modestly around 0.06 to 0.09 from November 2020 through early 2024, suggesting a conservative leverage position. Beginning in mid-2024, there is a noticeable rise in the debt to assets ratio, increasing from about 0.06 up to approximately 0.13 by August 2025. This reflects the earlier observed surge in total debt outpacing asset growth during the latter periods.

Overall, the financial data indicates that while the company's asset base has been steadily growing, its leverage position remained conservative for most of the timeframe. The latter period is marked by a significant increase in debt levels, which has materially raised the debt to assets ratio, implying a strategic shift toward higher leverage or borrowing. This change might suggest new funding initiatives, acquisitions, or other capital-intensive activities that warrant further detailed investigation for impact on financial risk and capital structure.

The analysis of the quarterly financial data reveals several notable trends in the company's total assets, shareholders’ equity, and financial leverage over the observed periods.

Total Assets

Total assets show a consistent upward trajectory from approximately $38.3 billion at the end of November 2020 to around $65.4 billion by the end of August 2025. This represents significant growth, reflecting an expansion of the company's asset base over the analyzed timeframe. While the progression is generally steady, minor fluctuations can be observed in late 2022 and early 2024, but the overall long-term trend is positive. The increase indicates the company's capacity to grow its resources and possibly invest in new opportunities.

Total Shareholders’ Equity

Shareholders’ equity follows a similar upward pattern, rising from about $17.9 billion at the end of November 2020 to over $31.2 billion by August 2025. This steady increase suggests retention of earnings or additional equity financing, strengthening the company’s capital structure. The growth in equity contributes to a solid foundation for financing operations and increasing shareholder value. The rate of increase in equity is somewhat more measured compared to total assets, signaling balanced growth supported by both assets and equity components.

Financial Leverage

Financial leverage, expressed as a ratio, starts at 2.14 in November 2020, slightly increasing to a peak of around 2.21 in August 2021 before gradually declining to approximately 1.89 in early 2024. Following this trough, the ratio trends upward again, reaching about 2.10 by August 2025. This pattern shows fluctuations in the company's use of debt relative to equity. The initial decrease in leverage suggests a period of deleveraging or conservative financing, enhancing financial stability. The subsequent rise may indicate increased borrowing or optimized capital structure to support asset growth while maintaining leverage at moderate levels. Overall, the financial leverage remains within a relatively narrow range, indicating consistent risk management with respect to debt usage.

In summary, the data illustrates robust asset and equity growth accompanied by measured adjustments in financial leverage. This reflects prudent management of capital resources, balancing growth with financial risk control over the multi-year period.

Earnings before interest and tax (EBIT)

The EBIT values demonstrate a fluctuating but generally increasing trend over the observed periods. Initially, the EBIT showed some volatility with dips and rises, yet from late 2022 onwards there is a notable upward movement, reaching its highest values in late 2024 and mid-2025. This indicates an overall improvement in operating profitability despite short-term variations. The peaks around the May and November quarters suggest potential seasonality or cyclical effects impacting earnings.

Interest expense

Interest expense exhibits variability with periodic spikes, particularly noticeable in early 2021 and again from mid-2024 onwards. The increase in interest costs in these periods could indicate either increased borrowing or changes in interest rates impacting the company's financing costs. The sharp rises in interest expense in the latter periods, especially evident in the quarters of 2024 and 2025, contrast with more moderate costs in the earlier years.

Interest coverage ratio

The interest coverage ratio shows a declining trend over time, despite the fluctuations in EBIT and interest expense. Initially, the ratio was extremely high, suggesting strong ability to meet interest obligations comfortably. However, from early 2023 there is a notable decline in coverage, dropping sharply especially in 2024 and further into 2025. This decline is primarily driven by the rising interest expenses outpacing EBIT growth, which could indicate increasing financial risk and reduced margin of safety concerning interest payments.

Overall analysis

The data reveals an overall positive trend in operating earnings, highlighting the company’s capacity to generate increasing operating profit over time. Nevertheless, the upward trajectory in interest expense and the corresponding decline in interest coverage ratio suggest a growing financial leverage or cost of debt burden. The widening gap between EBIT growth and interest costs may warrant attention, as sustained increases in interest expenses could impair financial stability and constrain future operational flexibility.