Accenture PLC (NYSE:ACN)

Debt to Equity and Related Ratios

The debt to equity ratio remained at zero through much of the early periods, indicating minimal reliance on debt financing relative to equity. Starting at the beginning of 2024, a slight increase was observed, with the ratio rising modestly to approximately 0.17 by late 2025. When including operating lease liabilities, the debt to equity ratio showed a gradual decline from 0.19 in late 2020 to around 0.12 by mid-2023, followed by an upward trend reaching about 0.27 towards the end of 2025. This suggests a shift in the composition or recognition of liabilities over time.

Debt to Capital Ratios

The standard debt to capital ratio remained negligible until early 2024, after which it increased to roughly 0.14 by late 2025. Including operating lease liabilities, this ratio demonstrated a decline from 0.16 in late 2020 to near 0.10 by early 2024, then rose steadily to approximately 0.21 at the end of the observed period. These trends indicate evolving capital structure dynamics, potentially due to changing debt levels or lease obligations.

Debt to Assets Ratios

Excluding operating lease liabilities, the debt to assets ratio was effectively zero until 2024, when a rise to about 0.08 occurred by the close of 2025. Including operating lease liabilities, the ratio showed a steady decline from 0.09 in late 2020 to approximately 0.06 by early 2024, then increased to around 0.13 by late 2025. This pattern aligns with the observed changes in other leverage measures, reflecting incremental debt usage and lease recognition.

Financial Leverage

The financial leverage ratio exhibited slight fluctuations but overall demonstrated a declining trend from 2.14 in late 2020 to around 1.89 by early 2024. Thereafter, it increased gradually to approximately 2.10 by the end of 2025. This indicates that the company initially reduced its reliance on debt financing relative to equity and assets before moderately increasing leverage towards the later periods.

Interest Coverage

Interest coverage ratios started very high, around 192 to 197 in 2020 and early 2021, reflecting strong earnings relative to interest expenses. There was a notable drop to approximately 127 in mid-2021, followed by recovery and improvement up to about 220 in mid-2023. Afterward, a decreasing trend persisted, with coverage falling sharply to roughly 40 by late 2025. This significant reduction suggests either increasing interest expenses, declining operating earnings, or a combination of both, indicating rising risk related to the company's ability to cover interest obligations.

The analysis of the quarterly financial data reveals several notable trends concerning debt, equity, and leverage ratios over the observed periods.

Total Debt

The total debt remained relatively stable and low from November 2020 through May 2023, fluctuating between approximately 54,000 and 70,000 thousand US dollars. However, starting from August 2023, a marked increase is observed, with total debt soaring dramatically, peaking above 5 billion US dollars in the periods from May 2024 through November 2025. This sudden and substantial increase in debt indicates a significant change in the company's financing strategy or capital structure during the latter periods.

Total Shareholders’ Equity

Shareholders' equity shows a steady uptrend throughout the observed time frame, increasing from around 17.9 billion US dollars in late 2020 to over 30 billion US dollars by mid-2025. The growth in equity appears consistent and relatively smooth, reflecting ongoing retained earnings, capital injections, or other equity-enhancing activities. Despite the surge in debt after mid-2023, equity continued to increase, indicating overall growth in the company's net assets.

Debt to Equity Ratio

The debt to equity ratio remained virtually negligible (close to zero) up until mid-2023, underscoring a conservative leverage position with minimal debt relative to equity. Beginning August 2023, the ratio experienced a sharp rise, moving from 0.01 to approximately 0.17 by the end of 2025. This trend aligns with the rise in total debt and indicates a significant increase in financial leverage. Nonetheless, even at its peak, the ratio suggests a moderate leverage level, with debt constituting less than 20% of equity.

In summary, the financial data highlight a phase of low leverage and stable debt levels through early 2023, followed by a substantial increase in debt starting in mid-2023. This shift raises the company’s leverage, although equity growth has continued concurrently. Such changes could signal strategic financing decisions to support growth initiatives, acquisitions, or other significant investments. The steady rise in equity alongside increased debt enhances the company’s capacity to manage higher leverage without compromising the equity base significantly.

The financial data reveals several notable trends in the company’s capital structure over the observed periods.

Total Debt (including operating lease liability)

The total debt exhibits fluctuations across the quarters. Starting at approximately 3.43 billion US dollars at the end of 2020, it initially remains relatively stable with minor variations until February 2024, averaging around 3.1 to 3.5 billion. However, there is a marked increase beginning in May 2024, where total debt rises sharply to over 4.6 billion and subsequently escalates further beyond 8 billion by November 2024. This rise signifies a substantial increase in leverage during the latter part of the period analyzed.

Total Shareholders’ Equity

Shareholders’ equity shows a consistent upward trajectory throughout the entire timeframe. Beginning at about 17.9 billion US dollars in November 2020, it steadily grows each quarter, reaching over 31 billion by August 2025. This sustained growth indicates the company’s strengthening equity base, reflecting accumulated earnings and retained capital.

Debt to Equity Ratio (including operating lease liabilities)

The debt to equity ratio initially trends downward, moving from 0.19 in late 2020 to a low of approximately 0.12 between mid-2022 and early 2024. This decline corresponds with the simultaneous modest decrease in debt and increase in equity, suggesting a conservative leverage position during this phase. However, starting in May 2024, the ratio shifts upward sharply to 0.17 and then rises significantly to around 0.28 in late 2024, before stabilizing near 0.26–0.27 thereafter. This shift aligns with the noted surge in total debt, indicating increased financial leverage relative to equity in the most recent periods.

In summary, the company's equity base has shown steady growth over the analyzed quarters, contributing to a strong capital foundation. The debt levels remained fairly stable for an extended period but exhibited a significant increase in the latter part of the timeline, resulting in a rising debt to equity ratio. This suggests a strategic move toward higher leverage, potentially for expansion, investment, or other financial purposes. The overall capital structure has transitioned from a low-leverage position to a higher but still moderate leverage level relative to equity.

The financial data indicates evolving dynamics in the company's capital structure and debt levels over the analyzed quarters. There is a pronounced trend of steady growth in total capital, accompanied by fluctuating total debt figures that markedly rise towards the later periods.

Total Debt

The total debt remained relatively stable and low in the initial quarters, hovering around the US$ 55,000–70,000 thousand range. However, from August 2023 onward, there is a sudden and significant increase, with debt escalating sharply to over US$ 1.4 million by August 2023 and reaching multi-million levels subsequently. By May 2025, the total debt surpasses US$ 5.1 billion, indicating substantial leveraging in recent periods.

Total Capital

Total capital shows a consistent upward trajectory across all quarters. Starting around US$ 17.9 billion in late 2020, it advances steadily each quarter, reaching approximately US$ 36 billion by late 2025. This continuous increase suggests ongoing investment, asset growth, or retained earnings contributing to the company’s expanding capital base.

Debt to Capital Ratio

The debt to capital ratio remains negligible at zero or near-zero levels through most of the early quarters, implying minimal reliance on debt in financing. From August 2023, this ratio increases noticeably, rising from 0.01 to peaks of around 0.15 in subsequent quarters. Despite the ratio increase, it remains moderate relative to total capital value, signifying that the company retains a predominantly equity-driven capital structure but with growing debt exposure.

Overall, the data indicates that while the company’s total capital has been steadily increasing over the years, a recent strategic shift appears to incorporate higher levels of debt financing. The substantial rise in debt levels and the corresponding increase in the debt-to-capital ratio suggest that the company may be leveraging debt for expansion or other strategic initiatives. Nevertheless, the debt remains a fraction of the total capital, maintaining a balanced financial position with manageable leverage ratios.

The financial trends demonstrate notable fluctuations in the company's debt profile and capital structure over the observed periods.

Total Debt (including operating lease liability)

The total debt exhibits moderate stability initially, fluctuating around the 3.3 to 3.5 billion US dollar range from late 2020 through early 2024. A sharp increase is observed starting May 2024, with debt rising substantially to over 8 billion US dollars by the end of 2025. This represents a significant leverage event, indicating increased borrowing or liabilities assumed during this latter period.

Total Capital (including operating lease liability)

Total capital shows a consistent upward trajectory from approximately 21.3 billion US dollars at the end of 2020 to about 30.3 billion by early 2024, reflecting steady growth in equity plus liabilities. After this period, total capital grows more rapidly, exceeding 39 billion US dollars by late 2025. This escalation is aligned with the rise in total debt, suggesting an expansion in overall financing and asset base.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio starts at around 0.16 and shows a gradual decline, reaching a low point near 0.10 by early 2024. This decline points to a strengthening capital base relative to debt, indicating improved financial leverage or a reduced reliance on debt funding. However, from mid-2024 onwards, the ratio sharply increases to values exceeding 0.20, signaling a reversal in trend with greater reliance on debt financing as part of the company’s capital structure.

Overall, the data reveals a period of steady growth and deleveraging followed by a marked increase in debt and capital levels in the most recent periods, highlighting a shift toward higher leverage and significant financing expansion.

Total Debt

Total debt displayed relative stability from late 2020 through early 2023, fluctuating within a range of approximately 54,000 to 68,000 thousand US dollars. A pronounced increase is observed starting from August 2023, where total debt rises sharply to over 147,000 thousand US dollars. This upward trend continues vigorously, reaching a peak near 5,157,000 thousand US dollars by mid-2025. Following this peak, the total debt level stabilizes just above 5,145,000 thousand US dollars toward the latter part of 2025.

Total Assets

Total assets steadily increased throughout the entire period, from approximately 38.3 million thousand US dollars at the end of 2020 to a high exceeding 65.3 million thousand US dollars by mid-2025. Growth was relatively consistent with moderate acceleration observed toward the latter half of the timespan, particularly after early 2023, reflecting an overall expansion of asset base.

Debt to Assets Ratio

The debt to assets ratio remained negligible and effectively zero from 2020 through early 2024, indicating minimal reliance on debt financing relative to total assets. A noticeable change occurs from mid-2024 onward, where the ratio increases to values between 0.02 and 0.09. The ratio peaks close to 0.09 during late 2024 and 2025, signaling that debt constitutes a rising proportion of the company’s asset base. Despite this increase, the ratio remains below 0.1, suggesting a still relatively conservative leverage position in absolute terms but with a clear upward trend in debt usage.

Overall Analysis

The data illustrate a company with a steadily growing asset base accompanied by a sharp increase in debt starting around mid-2023. This shift is reflected in the escalating debt to assets ratio, marking a transition from a low-leverage structure to more significant use of debt financing. The rising debt level may indicate strategic investment activities, acquisitions, or capital restructuring efforts aligned with asset growth. While the leverage increases considerably, it remains moderate in relation to total assets as of the end of the observed period.

Total Debt (including operating lease liability)

Over the observed periods, total debt remained relatively stable from late 2020 through early 2024, fluctuating between approximately 3.1 billion and 3.6 billion US dollars. A notable increase occurred starting in mid-2024, where debt surged sharply, reaching levels above 8.1 billion US dollars by late 2025. This marks a significant escalation in debt, more than doubling relative to the prior stable period.

Total Assets

Total assets exhibited a consistent upward trend across the entire timeframe. Beginning near 38.3 billion US dollars in late 2020, assets increased steadily, surpassing 51 billion by early 2024. The growth continued through to late 2025, peaking around 65 billion US dollars before a minor decline toward the end of the period. This steady asset growth indicates ongoing expansion of the asset base.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio remained low and stable between 0.06 and 0.09 from late 2020 to early 2024, reflecting a conservative leverage position. Starting mid-2024, the ratio increased distinctly to approximately 0.13-0.14, aligning with the sharp rise in total debt observed in the same period. This increase in leverage indicates a shift toward higher reliance on debt financing relative to asset size in the latter period.

Total Assets

Total assets demonstrate a consistent upward trend over the periods, increasing from approximately $38.3 billion to around $64.7 billion. This growth suggests steady expansion in the company's asset base over time. Although there is some fluctuation within quarters, the overall trajectory indicates sustained asset accumulation across the observed timeline.

Total Accenture plc Shareholders’ Equity

Shareholders' equity exhibits a steady increase from about $17.9 billion to approximately $30.9 billion throughout the time frame. The equity growth aligns with the rise in total assets, indicating reinvestment of earnings or capital injections that augment the company’s net worth. The upward movement suggests strengthening of the company’s financial stability and capacity to absorb losses.

Financial Leverage

Financial leverage, measured as a ratio, shows a general gradual decline from a high of approximately 2.21 to a low near 1.89, before rising again towards the end of the period to around 2.10. This pattern reflects an initial reduction in financial risk or reliance on debt relative to equity, followed by a moderate increase in leverage in recent periods. The ratio’s fluctuations suggest controlled management of debt relative to equity, balancing growth objectives with risk considerations.

Earnings Before Interest and Tax (EBIT)

The EBIT figures show a generally increasing trend over the observed periods, with fluctuations. Starting from approximately 1.995 billion USD in late 2020, there are rises and dips, notably peaking around late 2025 with over 3 billion USD. Significant increments appear in late 2021, mid-2022, and late 2024, while moderate declines occur in early 2023 and mid-2025, indicating some volatility but an overall upward trajectory.

Interest Expense

Interest expenses depict a less consistent pattern, with initial levels around 8,800 to 12,000 USD in thousands from late 2020 to early 2022. There is a spike in early 2021 to nearly 29,000 USD, followed by varying amounts through subsequent periods, increasing substantially starting in 2023. The highest interest expenses appear between late 2024 and mid-2025, reaching over 65,000 USD in thousands. This rising trend in costs may reflect increased debt or changes in borrowing rates.

Interest Coverage Ratio

The interest coverage ratio demonstrates a strong capacity to cover interest expenses initially, exceeding 190 in 2020 and early 2021, but shows a gradual decline over time. Values fluctuate downward from over 200 in late 2022 to under 50 by late 2025. This trend indicates a significant decrease in EBIT relative to interest expenses, potentially signaling rising financial leverage or interest burden, reducing the margin of safety for interest payments.

Overall Analysis

The combination of increasing EBIT and rising interest expenses, together with a declining interest coverage ratio, suggests that while operational profitability is improving, the cost of debt is also increasing at a faster rate. This reduces financial flexibility and raises concerns over long-term debt sustainability. Monitoring this trend is crucial to prevent potential solvency risks if interest expenses continue to escalate disproportionately compared to EBIT.