Accenture plc (ACN)

Interest coverage

		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	Aug 31, 2019	May 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	6,207,620	6,097,420
Interest expense (ttm)	US$ in thousands	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	22,963	20,625
Interest coverage		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	270.33	295.63

February 29, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,212,140K ÷ $53,411K
= 172.48

Accenture plc's interest coverage ratio has exhibited a generally healthy trend over the past few reporting periods. The company's interest coverage ratio, which measures its ability to cover interest expenses with operating profits, has consistently been at comfortable levels, ranging from a low of 125.56 to a high of 295.63.

The interest coverage ratio peaked at 295.63 on February 29, 2020, indicating that Accenture's operating profits were significantly higher than its interest expenses during that period. This suggests a strong financial position and the ability to easily meet interest obligations.

While there have been slight fluctuations in the interest coverage ratio over the years, the overall trend has been positive. The ratio has generally stayed well above 1, indicating that Accenture has had no issues meeting its interest payment obligations with its operating income.

The consistent and healthy interest coverage ratio of Accenture plc reflects the company's efficient management of its debt and its ability to generate sufficient operating income to cover interest expenses. Investors and creditors may view this as a positive indicator of the company's financial health and stability.