Accenture plc (ACN)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,603,880 | 9,224,130 | 9,212,140 | 9,071,940 | 9,054,880 | 9,344,180 | 9,213,060 | 9,320,640 | 9,131,700 | 8,810,730 | 8,439,890 | 8,151,540 | 7,736,870 | 7,607,190 | 7,165,900 | 6,915,950 | 6,729,930 | 6,503,120 | 6,532,340 | 6,397,160 |
| Interest expense (ttm) | US$ in thousands | 58,969 | 53,537 | 53,411 | 54,740 | 47,525 | 42,993 | 43,835 | 43,417 | 47,320 | 47,426 | 64,115 | 61,821 | 59,492 | 60,584 | 36,806 | 36,451 | 33,071 | 26,493 | 26,880 | 23,932 |
| Interest coverage | 162.86 | 172.29 | 172.48 | 165.73 | 190.53 | 217.34 | 210.18 | 214.68 | 192.98 | 185.78 | 131.64 | 131.86 | 130.05 | 125.56 | 194.69 | 189.73 | 203.50 | 245.47 | 243.02 | 267.31 |
August 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,603,880K ÷ $58,969K
= 162.86
From the provided data on Accenture plc's interest coverage ratio over the past few quarters, we can see a varying trend. The interest coverage ratio measures a company's ability to meet its interest obligations on its debt using its operating income.
The interest coverage ratio for Accenture plc has generally been strong and well above 1, indicating that the company has sufficient operating income to cover its interest expenses. Specifically, the interest coverage ratio has ranged from a low of 125.56 to a high of 267.31 over the past few quarters.
In more recent quarters, Accenture plc's interest coverage ratio has shown some fluctuations but has remained at healthy levels, with values above 150. This demonstrates the company's capacity to service its debt obligations comfortably and suggests a strong financial position.
Overall, based on the trend in the interest coverage ratio, Accenture plc appears to have a solid ability to meet its interest payments, reflecting positively on its financial health and stability.
Peer comparison
Aug 31, 2024