Financial statement analysis and common stock valuation

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Accenture PLC assets. Operating performance ratios describe the relationship between the Accenture PLC level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Receivable Collection Period
• Average Payables Payment Period

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the Accenture PLC suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Cash Flow Statement

The cash flow statement provides information about Accenture PLC cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Accenture PLC balance sheet.

Analysis of Geographic Areas

Accenture PLC operates in 2 regions: United States and Other countries.

• Area Asset Turnover
• Revenues
• Property and equipment, net

Analysis of Profitability Ratios
Quarterly Data

Measures the income of Accenture PLC relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Analysis of Solvency Ratios
Quarterly Data

Examines Accenture PLC capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Accenture PLC common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Enterprise Value to EBITDA (EV/EBITDA)

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a Accenture PLC cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio