Keywords
Abstract
This article presents a comparative analysis of the financial solvency of Capgemini and its industry peer, Accenture, using three key financial indicators: the Debt-to-Equity Ratio, Interest Coverage Ratio, and Fixed Charge Coverage Ratio. These metrics offer valuable insights into each company's financial structure, risk profile, and ability to meet long-term obligations. By examining and interpreting these ratios, the article evaluates the relative financial stability and operational soundness of both companies within the context of the global IT consulting industry. The findings aim to inform investors, analysts, and stakeholders about the strengths and potential vulnerabilities in the capital structure and solvency of Capgemini compared to Accenture.
References
1. Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance, 23(4), 589–609. https://doi.org/10.2307/2326758
2. Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice (15th ed.). Cengage Learning.
3. Damodaran, A. (2002). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (2nd ed.). Wiley.
4. Ghosh, S., & Ghosh, S. (2010). Financial ratio analysis for performance evaluation: A case study of Infosys Technologies Ltd. Journal of Business and Management, 5(2), 45–52.
5. Penman, S. H. (2012). Financial Statement Analysis and Security Valuation (5th ed.). McGraw-Hill/Irwin.
6. Capgemini SE. (2024). Annual Report 2023. Retrieved from https://investors.capgemini.com
Accenture plc. (2024). Annual Report 2023 and Form 10-K. Retrieved from https://investor.accenture.com