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Accenture PLC (NYSE:ACN)
Interest Expense
$-18 Mil (TTM As of Aug. 2014)

Interest Expense is the amount reported by a company or individual as an expense for borrowed money. Accenture PLC's interest expense for the three months ended in Aug. 2014 was $-5 Mil. Its interest expense for the trailing twelve months (TTM) ended in Aug. 2014 was $-18 Mil.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company’s Operating Income (EBIT) by its Interest Expense. Accenture PLC's Operating Income for the three months ended in Aug. 2014 was $1,079 Mil. Accenture PLC's Interest Expense for the three months ended in Aug. 2014 was $-5 Mil. Accenture PLC's interest coverage for the quarter that ended in Aug. 2014 was 202.70. The higher the ratio, the stronger the company’s financial strength is.


Definition

Interest Expense is the amount reported by a company or individual as an expense for borrowed money.

Accenture PLC Interest Expense for the trailing twelve months (TTM) ended in Aug. 2014 was -3.658 (Nov. 2013 ) + -4.348 (Feb. 2014 ) + -4.29 (May. 2014 ) + -5.325 (Aug. 2014 ) = $-18 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company’s Operating Income (EBIT) by its Interest Expense. The higher, the better.

Accenture PLC's interest expense for the three months ended in Aug. 2014 was $-5 Mil. Its operating income for the three months ended in Aug. 2014 was $1,079 Mil. And its Long-Term Debt for the three months ended in Aug. 2014 was $26 Mil.

Accenture PLC's Interest Coverage for the quarter that ended in Aug. 2014 is calculated as

Interest Coverage=-1*Operating Income (Q: Aug. 2014 )/Interest Expense (Q: Aug. 2014 )
=-1*1079.365/-5.325
=202.70

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

Ben Graham prefers companies interest coverage is at least 5. Accenture PLC has enough cash to cover all of its debt. Its financial situation is stable.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Accenture PLC Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
Interest Expense -24-21-25-23-14-15-15-15-14-18

Accenture PLC Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
Interest Expense -3-3-5-4-4-2-4-4-4-5
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