Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Accenture PLC, balance sheet: goodwill and intangible assets

US$ in thousands

	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019	Aug 31, 2018
Goodwill	15,573,003)	13,133,293)	11,125,861)	7,709,820)	6,205,550)	5,383,012)
Customer-related	2,842,257)	2,498,001)	2,068,156)	1,319,332)	1,013,976)	862,418)
Technology	289,989)	283,251)	250,481)	150,765)	119,686)	94,844)
Patents	123,579)	126,950)	126,202)	129,295)	127,796)	128,179)
Other	65,138)	62,875)	70,407)	82,676)	78,344)	50,490)
Definite-lived intangible assets, gross carrying amount	3,320,963)	2,971,077)	2,515,246)	1,682,068)	1,339,802)	1,135,931)
Accumulated amortization	(1,248,006)	(1,040,269)	(804,308)	(652,850)	(499,023)	(448,821)
Definite-lived intangible assets, net carrying amount	2,072,957)	1,930,808)	1,710,938)	1,029,218)	840,779)	687,110)
Goodwill and intangible assets	17,645,960)	15,064,101)	12,836,799)	8,739,038)	7,046,329)	6,070,122)

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).

Download chart

Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Accenture PLC goodwill increased from 2021 to 2022 and from 2022 to 2023.
Definite-lived intangible assets, net carrying amount	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Accenture PLC definite-lived intangible assets, net carrying amount increased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Accenture PLC goodwill and intangible assets increased from 2021 to 2022 and from 2022 to 2023.

Accenture PLC, adjustments to financial statements

US$ in thousands

	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019	Aug 31, 2018
Adjustment to Total Assets
Total assets (as reported)	51,245,305)	47,263,390)	43,175,843)	37,078,593)	29,789,880)	24,449,083)
Less: Goodwill	15,573,003)	13,133,293)	11,125,861)	7,709,820)	6,205,550)	5,383,012)
Total assets (adjusted)	35,672,302)	34,130,097)	32,049,982)	29,368,773)	23,584,330)	19,066,071)
Adjustment to Total Accenture Plc Shareholders’ Equity
Total Accenture plc shareholders’ equity (as reported)	25,692,839)	22,106,097)	19,529,454)	17,000,536)	14,409,008)	10,364,753)
Less: Goodwill	15,573,003)	13,133,293)	11,125,861)	7,709,820)	6,205,550)	5,383,012)
Total Accenture plc shareholders’ equity (adjusted)	10,119,836)	8,972,804)	8,403,593)	9,290,716)	8,203,458)	4,981,741)

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).

Accenture PLC, Financial Data: Reported vs. Adjusted

Download chart

Accenture PLC, adjusted financial ratios

	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019	Aug 31, 2018
Total Asset Turnover
Reported total asset turnover	1.25	1.30	1.17	1.20	1.45	1.70
Adjusted total asset turnover	1.80	1.80	1.58	1.51	1.83	2.18
Financial Leverage
Reported financial leverage	1.99	2.14	2.21	2.18	2.07	2.36
Adjusted financial leverage	3.52	3.80	3.81	3.16	2.87	3.83
Return on Equity (ROE)
Reported ROE	26.75%	31.11%	30.25%	30.05%	33.17%	39.17%
Adjusted ROE	67.90%	76.64%	70.29%	54.98%	58.26%	81.50%
Return on Assets (ROA)
Reported ROA	13.41%	14.55%	13.68%	13.78%	16.04%	16.61%
Adjusted ROA	19.26%	20.15%	18.43%	17.39%	20.26%	21.29%

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Accenture PLC adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Accenture PLC adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Accenture PLC adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Accenture PLC adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Accenture PLC, Financial Ratios: Reported vs. Adjusted

Download chart

	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019	Aug 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Revenues	64,111,745)	61,594,305)	50,533,389)	44,327,039)	43,215,013)	41,603,428)
Total assets	51,245,305)	47,263,390)	43,175,843)	37,078,593)	29,789,880)	24,449,083)
Activity Ratio
Total asset turnover¹	1.25	1.30	1.17	1.20	1.45	1.70
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenues	64,111,745)	61,594,305)	50,533,389)	44,327,039)	43,215,013)	41,603,428)
Adjusted total assets	35,672,302)	34,130,097)	32,049,982)	29,368,773)	23,584,330)	19,066,071)
Activity Ratio
Adjusted total asset turnover²	1.80	1.80	1.58	1.51	1.83	2.18

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).

2023 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 64,111,745 ÷ 51,245,305 = 1.25

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 64,111,745 ÷ 35,672,302 = 1.80

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Accenture PLC adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019	Aug 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	51,245,305)	47,263,390)	43,175,843)	37,078,593)	29,789,880)	24,449,083)
Total Accenture plc shareholders’ equity	25,692,839)	22,106,097)	19,529,454)	17,000,536)	14,409,008)	10,364,753)
Solvency Ratio
Financial leverage¹	1.99	2.14	2.21	2.18	2.07	2.36
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	35,672,302)	34,130,097)	32,049,982)	29,368,773)	23,584,330)	19,066,071)
Adjusted total Accenture plc shareholders’ equity	10,119,836)	8,972,804)	8,403,593)	9,290,716)	8,203,458)	4,981,741)
Solvency Ratio
Adjusted financial leverage²	3.52	3.80	3.81	3.16	2.87	3.83

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Accenture plc shareholders’ equity
= 51,245,305 ÷ 25,692,839 = 1.99

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Accenture plc shareholders’ equity
= 35,672,302 ÷ 10,119,836 = 3.52

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Accenture PLC adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019	Aug 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc	6,871,557)	6,877,169)	5,906,809)	5,107,839)	4,779,112)	4,059,907)
Total Accenture plc shareholders’ equity	25,692,839)	22,106,097)	19,529,454)	17,000,536)	14,409,008)	10,364,753)
Profitability Ratio
ROE¹	26.75%	31.11%	30.25%	30.05%	33.17%	39.17%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc	6,871,557)	6,877,169)	5,906,809)	5,107,839)	4,779,112)	4,059,907)
Adjusted total Accenture plc shareholders’ equity	10,119,836)	8,972,804)	8,403,593)	9,290,716)	8,203,458)	4,981,741)
Profitability Ratio
Adjusted ROE²	67.90%	76.64%	70.29%	54.98%	58.26%	81.50%

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).

2023 Calculations

¹ ROE = 100 × Net income attributable to Accenture plc ÷ Total Accenture plc shareholders’ equity
= 100 × 6,871,557 ÷ 25,692,839 = 26.75%

² Adjusted ROE = 100 × Net income attributable to Accenture plc ÷ Adjusted total Accenture plc shareholders’ equity
= 100 × 6,871,557 ÷ 10,119,836 = 67.90%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Accenture PLC adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019	Aug 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc	6,871,557)	6,877,169)	5,906,809)	5,107,839)	4,779,112)	4,059,907)
Total assets	51,245,305)	47,263,390)	43,175,843)	37,078,593)	29,789,880)	24,449,083)
Profitability Ratio
ROA¹	13.41%	14.55%	13.68%	13.78%	16.04%	16.61%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc	6,871,557)	6,877,169)	5,906,809)	5,107,839)	4,779,112)	4,059,907)
Adjusted total assets	35,672,302)	34,130,097)	32,049,982)	29,368,773)	23,584,330)	19,066,071)
Profitability Ratio
Adjusted ROA²	19.26%	20.15%	18.43%	17.39%	20.26%	21.29%

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).

2023 Calculations

¹ ROA = 100 × Net income attributable to Accenture plc ÷ Total assets
= 100 × 6,871,557 ÷ 51,245,305 = 13.41%

² Adjusted ROA = 100 × Net income attributable to Accenture plc ÷ Adjusted total assets
= 100 × 6,871,557 ÷ 35,672,302 = 19.26%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Accenture PLC adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Accenture PLC (NYSE:ACN)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Accenture PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Accenture PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)