Accenture PLC (NYSE:ACN)

Debt to Equity Ratios

The debt to equity ratio remained at zero consistently until the early part of 2023, where a slight increase to 0.01 was observed. From that point onward, there was a gradual rise, reaching up to 0.18 by early 2025 before stabilizing around 0.17. When including operating lease liabilities, the ratio showed a declining trend from 0.22 in late 2019 to about 0.12 by mid-2023, followed by a notable increase peaking at 0.28 by early 2025, then slightly reducing to about 0.26. This suggests an increasing reliance on lease obligations towards the later periods.

Debt to Capital Ratios

The debt to capital ratio mirrored the debt to equity trend, remaining at zero up until early 2023, then increasing to 0.15 by mid-2025. Including operating lease liabilities, the ratio decreased steadily from 0.18 in late 2019 to around 0.11 by mid-2023, before rising again to approximately 0.22 in early 2025. This pattern indicates cautious leverage with subsequent incremental adoption of lease-related financing.

Debt to Assets Ratios

The debt to assets measure stayed at zero until early 2023, after which it increased modestly to near 0.09 by mid-2025. However, including operating lease liabilities, the ratio decreased slightly from 0.1 in late 2019 to about 0.06 in mid-2023, then increased up to 0.14 by early 2025. This points to a limited level of indebtedness relative to total assets, with lease liabilities playing a more prominent role over time.

Financial Leverage

Financial leverage showed a gradual decline over the observed periods, decreasing from about 2.19 in late 2019 to around 1.89 by early 2024, indicating a reduction in the proportion of assets financed by equity. However, a slight reversal appeared subsequently, with ratios inching upward to about 2.10 by mid-2025, demonstrating a mild increase in leverage.

Interest Coverage

The interest coverage ratio displayed very high values throughout the recorded periods, consistently exceeding 100 until mid-2023, suggesting strong ability to cover interest expenses from operating earnings. However, from late 2023 onwards, this ratio declined significantly, dropping from over 165 to approximately 46 by mid-2025. This sharp decrease may point to rising interest expenses or a weakening of earnings relative to those expenses during the most recent quarters.

The financial data demonstrates significant dynamics in the company's debt and equity levels over the analyzed periods. The total debt exhibits a relatively stable trend initially, with values fluctuating modestly around the range of approximately 19,000 to 70,000 US$ thousands up to August 2023. A notable and sharp increase in total debt occurs starting from August 2023, where the debt escalates abruptly to over 1.4 million US$ thousands and subsequently reaches peaks above 5 million US$ thousands in the subsequent periods.

Simultaneously, the shareholders' equity shows consistent growth throughout the entire period, increasing from roughly 15.1 billion US$ thousands at the start of the dataset to approximately 31.2 billion US$ thousands by the latter dates. This steady upward trend suggests sustained accumulation of equity and retained earnings over time.

The debt-to-equity ratio remains near zero for most of the periods, highlighting minimal reliance on debt financing relative to equity. However, from August 2023 onward, there is a marked increase in this ratio, rising to 0.06 and spiking further significantly to around 0.18 in subsequent quarters. This jump corresponds with the substantial increase in total debt, indicating a shift towards greater debt leverage in the capital structure.

Overall, the data suggests a period of conservative debt usage initially, followed by a strategic or necessary pivot towards higher debt accumulation in recent quarters. The increasing equity base alongside rising debt implies that despite the higher leverage, the company maintains a solid equity foundation. The sudden increase in debt-to-equity ratio signals a changing financial strategy or response to market conditions that warrants further analysis and monitoring to assess the implications for financial risk and capital cost.

Total Debt

Relatively stable with minor fluctuations until mid-2023, followed by a sharp and substantial increase from August 2023 onward.

Shareholders' Equity

Consistent and steady growth throughout the entire period, indicating strengthening equity capital.

Debt to Equity Ratio

Close to zero for the majority of the period, with a sudden rise from August 2023 reflecting increased leverage and utilization of debt.

The financial data reveals several noteworthy trends regarding the company's debt levels, shareholders' equity, and debt-to-equity ratio over the observed periods.

Total Debt (including operating lease liability)

The total debt displayed a relatively stable pattern from late 2019 through early 2023, fluctuating in a narrow range mostly between approximately 3.1 billion and 3.5 billion US dollars. Notably, from February 2024 onward, there is a significant increase in total debt, peaking substantially at over 8.1 billion US dollars by November 2024 and remaining around that elevated level through mid-2025. This sharp rise indicates a marked increase in leverage or financing activities during this recent period.

Total Shareholders’ Equity

Shareholders’ equity demonstrated a consistent upward trend across the entire timeframe. Beginning at around 15.2 billion US dollars in late 2019, equity increased steadily, reaching over 31.1 billion US dollars by mid-2025. The growth in equity reflects continual accumulation of retained earnings, capital injections, or revaluation gains, supporting a strengthening financial position despite fluctuating debt levels.

Debt to Equity Ratio (including operating lease liability)

The debt-to-equity ratio exhibited a gradual decline from 0.22 in late 2019 to a low of approximately 0.12 by early 2023, indicating an improving balance between debt and equity with relatively less reliance on debt financing compared to equity. However, starting from early 2024, the ratio reverses this trend and rises sharply to around 0.28 by mid-2025. This increase aligns with the substantial upsurge in total debt observed during the same period and suggests a higher leverage position relative to equity.

In summary, the data highlights a stable and conservative financial structure through 2019 to early 2023, with steady equity growth and controlled debt levels resulting in a declining debt-to-equity ratio. The subsequent periods show a marked policy shift, where debt levels, and correspondingly the debt-to-equity ratio, significantly increase. This may reflect strategic decisions to leverage financing for growth, acquisitions, or other capital-intensive initiatives. The consistent increase in shareholders' equity throughout the dataset suggests a robust equity base supporting these financial changes.

Total Debt

The total debt exhibited a generally stable pattern with values fluctuating around the 60,000 to 70,000 thousand US dollars range from late 2019 through early 2023. A significant and abrupt increase occurred starting August 2023, with total debt rising markedly to over 1.4 million US dollars and continuing to escalate sharply, reaching over 5.1 million US dollars by mid-to-late 2025. This sudden surge indicates a considerable increase in borrowings or liabilities over the latter periods.

Total Capital

Total capital showed a consistent upward trend throughout the entire period, reflecting steady growth in the company's capital base. Starting from approximately 15.2 billion US dollars in late 2019, the capital steadily increased each quarter, reaching over 36.3 billion US dollars by the latter part of 2025. This trend demonstrates ongoing capital accumulation or asset growth over the timeframe, which was uninterrupted even during the periods of rising debt.

Debt to Capital Ratio

The debt to capital ratio remained negligible (close to zero) from 2019 until early 2023, indicating a minimal reliance on debt financing within the capital structure. Beginning mid-2023, the ratio started to rise, first to around 0.01, then showing a marked increase in subsequent quarters, peaking around 0.15 by mid-2025. This reflects a notable shift towards greater leverage during this later period, corresponding with the significant increase observed in total debt. Despite rising debt levels, the ratio remains moderate, indicating that capital growth has somewhat offset the leverage increase.

Overall Analysis

The data reveals that the company maintained a low debt profile relative to its capital base through the majority of the examined period, suggesting conservative financial management or low external borrowing. Starting mid-2023, there was a substantial increase in debt, accompanied by a rise in the debt to capital ratio, signaling a strategic change toward greater leverage. At the same time, capital continued its steady growth trend, which mitigated the impact on capital structure leverage ratios. The sudden escalation in debt levels warrants further investigation to understand the underlying causes, such as financing initiatives, acquisitions, or other capital-intensive activities.

Total Debt (including operating lease liability)

The total debt showed a relatively stable pattern from late 2019 through early 2023, fluctuating mostly between approximately 3.1 billion and 3.5 billion US dollars. Notably, from early 2024 onward, there was a pronounced increase in total debt, rising sharply from around 3.2 billion to over 8.1 billion by early 2025. This marks a significant shift compared to the earlier periods of moderate changes.

Total Capital (including operating lease liability)

Total capital steadily increased throughout the entire timeframe. Starting at about 18.5 billion in late 2019, it climbed steadily each quarter, surpassing 30 billion by early 2024, and reaching nearly 39.4 billion by early 2025. This consistent upward trajectory reflects ongoing growth in the company’s capital base over the period in question.

Debt to Capital Ratio (including operating lease liability)

The debt-to-capital ratio exhibited a decreasing trend from late 2019 through early 2024, dropping from 0.18 to a low of 0.10. This decline indicates a gradual reduction in leverage relative to the company's capital during that period. However, beginning in early 2024, the ratio reversed course sharply, increasing to approximately 0.21 by early 2025. This increase in leverage corresponds with the sizeable rise in total debt noted during the same period, suggesting a strategic shift leading to higher indebtedness relative to capital.

Total Debt

The total debt exhibits a generally upward trajectory over the observed periods, starting from a relatively low level around 19,633 thousand US dollars in late 2019 and experiencing a marked increase with some fluctuations. Notably, there was a significant spike beginning in August 2023, with total debt rising sharply to over 1.47 million thousand US dollars, further escalating to approximately 5.15 million thousand US dollars through mid to late 2025. This indicates a considerable increase in the use of debt financing or liabilities in recent years.

Total Assets

Total assets steadily increased from approximately 33.2 billion US dollars in late 2019 to about 65.4 billion US dollars by late 2025. This growth appears consistent and gradual, without sharp declines or large fluctuations, suggesting ongoing asset accumulation or appreciation. The increase from early 2023 onwards aligns with the increasing debt level, possibly reflecting acquisition of assets financed through debt.

Debt to Assets Ratio

The debt to assets ratio remained extremely low and stable at zero for the majority of the periods until early 2024, implying negligible debt levels relative to asset size. Starting in February 2024, this ratio rose to roughly 0.03, then fluctuated slightly but generally increased to around 0.08-0.09 by mid to late 2025. Although still relatively low, the ratio’s increase corresponds with the observed rise in total debt, indicating a growing use of debt relative to total asset base in this later period.

Summary Insight

Overall, the company maintained a very low leverage profile for several years but commenced a notable increase in debt levels from early 2023 onward. This has led to a moderate rise in the debt to assets ratio, although it remains below 10%, signaling a cautious increase in financial leverage. The concurrent steady growth in total assets suggests the additional debt may be supporting asset expansion or strategic investments. The financial stance appears to be shifting towards greater leverage, which may carry higher risk but also potential for enhanced returns if managed prudently.

The financial data reflects the quarterly trends in total debt, total assets, and the corresponding debt-to-assets ratio over several years.

Total Debt (including operating lease liability)

The total debt figures initially show a relatively stable pattern, fluctuating mildly around the 3.3 to 3.5 billion USD mark from late 2019 through early 2023. This period is characterized by slight decreases and increases without significant deviations.

Starting from early 2024, total debt experiences a sharp and substantial rise, almost doubling from around 3.15 billion USD to over 8.1 billion USD in several quarters. This marked increase suggests the company has significantly increased its debt load in the most recent periods.

Total Assets

Total assets indicate a consistent upward trend throughout the entire timeframe. From approximately 33.2 billion USD at the end of 2019, assets steadily increase, reaching over 51.5 billion USD by early 2023.

The asset growth continues beyond early 2023, with values rising to approximately 65.4 billion USD by mid-2025, further confirming ongoing asset expansion and accumulation by the company.

Debt to Assets Ratio (including operating lease liability)

The debt-to-assets ratio exhibits a gradual decline from 0.10 at the end of 2019 to a low of around 0.06 by early 2023. This trend reflects improving leverage ratios, indicating a relatively stronger asset base compared to debt levels during this period.

However, from early 2024 onwards, this ratio escalates sharply to approximately 0.13–0.14, coinciding with the large increase in total debt. This reversal indicates a deterioration in the leverage position, with debt growing faster than assets during the later quarters.

Overall, the company demonstrated stable and prudent leverage management for several years, as reflected by steady asset growth and declining debt ratios. The notable spike in debt and corresponding increase in the debt-to-assets ratio in recent quarters represents a significant change in financial structure, pointing to a strategic shift or increased borrowing that may warrant further investigation regarding its purpose and impact on financial stability.

The analysis of the financial data reveals several noteworthy trends related to the company’s asset base, shareholders’ equity, and financial leverage over the observed periods.

Total Assets

The total assets exhibit a generally upward trend from approximately 33.2 billion US dollars to nearly 65.4 billion US dollars over the analyzed timeframe. This steady increase suggests consistent growth in the company’s asset base, with occasional periods of accelerated accumulation, particularly noticeable during the intervals around mid-2023 to late 2024.

Total Shareholders’ Equity

Shareholders’ equity also shows a positive trajectory, rising from about 15.2 billion US dollars to over 31.1 billion US dollars. The incremental increases indicate strengthening book value and retained earnings. The growth appears steady with no significant volatility, reflecting a stable equity foundation supporting the company’s operations.

Financial Leverage Ratio

The financial leverage ratio, reflecting the relationship between total assets and shareholders’ equity, demonstrates a gradual decline from a peak ratio of approximately 2.19 down to a low near 1.89, before slightly increasing again toward the end of the period to around 2.10. This pattern suggests that the company initially reduced its reliance on debt or other liabilities relative to equity but then slightly increased leverage in the most recent periods. The overall leverage remains moderate, indicating balanced use of debt financing.

In summary, the company exhibits a robust expansion of its asset base and shareholders’ equity, signaling financial growth and capital strength. The leverage trend suggests prudent management of debt levels with a cautious increase in financial leverage towards the latest periods, potentially indicating strategic utilization of leverage to support growth initiatives or optimize capital structure.

The analysis of the company's quarterly financial data reveals several notable trends in earnings before interest and tax (EBIT), interest expense, and interest coverage ratios over the reported periods.

Earnings Before Interest and Tax (EBIT)

The EBIT figures demonstrate fluctuations but generally exhibit an upward trend over the extended timeframe. Initially, EBIT declined from approximately 1.81 billion to 1.52 billion USD between late 2019 and early 2020. However, from mid-2020 onwards, EBIT showed marked recovery and growth, reaching peaks above 2.6 billion USD in multiple quarters around 2021 and 2022. Despite some volatility, including a few quarters of reduced EBIT near 2 billion USD, the overall trajectory points toward increasing operating profitability over the longer term. Toward the most recent quarters reported in 2024 and 2025, EBIT again appears to rise significantly, exceeding previous highs and approaching nearly 3 billion USD in certain quarters.

Interest Expense

The interest expense presents more variability and a generally increasing trend across the periods. Early values start relatively low, around 5,000 to 8,500 USD thousands, then experience alternations with spikes, notably a significant jump in mid-2021 to above 28,000 USD thousands. The most striking trend is the sharp increase in interest expense starting around 2024, where quarterly amounts reach levels between approximately 22,000 and nearly 68,000 USD thousands. This progression suggests increased debt servicing costs or higher borrowing levels in recent periods.

Interest Coverage Ratio

The interest coverage ratio, which measures the ability to cover interest expenses with EBIT, follows an inverse trend relative to interest expense. Early data around mid-2020 show very high ratios above 190, indicating robust coverage. However, as interest expenses grow significantly in later quarters, the coverage ratio declines steadily, dropping from over 200 to below 60 by the most recent periods in 2024 and 2025. Although EBIT remains high, the rapid rise in interest expenses negatively impacts this ratio, signaling potentially increasing financial risk or reduced buffer for interest payments.

In summary, while operating profitability as evidenced by EBIT appears strong and generally improving over time, increasing interest expenses have eroded the company's interest coverage substantially. The data suggest a growing reliance on debt or higher cost of capital in recent periods, warranting close monitoring of leverage and interest burden to maintain financial stability.