Accenture plc (ACN)

Financial leverage ratio

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Total assets	US$ in thousands	55,932,400	54,141,300	51,307,500	51,531,400	51,245,300	50,128,300	47,727,300	47,115,800	47,263,400	46,095,200	44,317,800	43,674,700	43,175,800	42,124,900	39,985,400	38,268,300	37,078,600	35,057,300	33,503,400	33,170,700
Total stockholders’ equity	US$ in thousands	28,288,600	27,744,500	27,122,900	26,676,800	25,692,800	25,332,400	23,762,600	22,974,600	22,106,100	21,389,100	20,560,000	20,353,200	19,529,500	19,342,800	18,308,000	17,906,500	17,000,500	16,014,600	15,474,600	15,167,100
Financial leverage ratio		1.98	1.95	1.89	1.93	1.99	1.98	2.01	2.05	2.14	2.16	2.16	2.15	2.21	2.18	2.18	2.14	2.18	2.19	2.17	2.19

August 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $55,932,400K ÷ $28,288,600K
= 1.98

Over the past several quarters, Accenture plc's financial leverage ratio has shown some fluctuations but has generally remained at elevated levels. The financial leverage ratio, which measures the proportion of a company's total assets that are financed by debt, demonstrates that Accenture has been relying more on debt to fund its operations and growth.

The ratio has ranged from 1.89 to 2.21 over the past two years, with a general increasing trend seen from November 2020 to August 2022. This suggests that Accenture has been taking on more debt relative to its total assets during this period. However, the ratio started to slightly decrease in the most recent quarters, indicating a potential shift in the company's capital structure strategy.

A financial leverage ratio above 1 indicates that a company has more debt than equity in its capital structure. While higher leverage can amplify returns in favorable conditions, it also increases financial risk, especially in times of economic downturn or rising interest rates. Investors and analysts closely monitor changes in the financial leverage ratio to assess a company's financial health and ability to meet its debt obligations.