Accenture plc (ACN)

Financial leverage ratio

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Total assets	US$ in thousands	51,245,300	47,263,400	43,175,800	37,078,600	29,789,900
Total stockholders’ equity	US$ in thousands	25,692,800	22,106,100	19,529,500	17,000,500	14,409,000
Financial leverage ratio		1.99	2.14	2.21	2.18	2.07

August 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $51,245,300K ÷ $25,692,800K
= 1.99

The financial leverage ratio of Accenture plc has shown a declining trend over the past five years, decreasing from 2.07 in 2019 to 1.99 in 2023. This indicates that the company's reliance on debt financing has decreased over the period, which may be viewed positively by creditors and investors. A lower financial leverage ratio suggests a lower level of financial risk and greater financial stability. It is worth noting that a declining trend in the financial leverage ratio could indicate a more conservative capital structure, potentially allowing for more flexibility in managing the company's financial obligations. However, it is important for stakeholders to consider the specific business and economic factors influencing this trend in order to fully assess the impact on the company's financial health.