Stock Analysis on Net

Accenture PLC (NYSE:ACN)

Analysis of Investments

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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Accenture PLC, adjustment to net income attributable to Accenture plc

US$ in thousands

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12 months ended: Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
Net income attributable to Accenture plc (as reported) 5,906,809  5,107,839  4,779,112  4,059,907  3,445,149  4,111,892 
Add: Investments, net of tax 49  (778) (1,665) 1,150  1,575  1,358 
Net income attributable to Accenture plc (adjusted) 5,906,858  5,107,061  4,777,447  4,061,057  3,446,724  4,113,250 

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).


Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Accenture PLC, adjusted profitability ratios

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Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
Net Profit Margin
Reported net profit margin 11.69% 11.52% 11.06% 9.76% 9.37% 11.82%
Adjusted net profit margin 11.69% 11.52% 11.06% 9.76% 9.37% 11.82%
Return on Equity (ROE)
Reported ROE 30.25% 30.05% 33.17% 39.17% 38.50% 54.42%
Adjusted ROE 30.25% 30.04% 33.16% 39.18% 38.51% 54.44%
Return on Assets (ROA)
Reported ROA 13.68% 13.78% 16.04% 16.61% 15.18% 19.95%
Adjusted ROA 13.68% 13.77% 16.04% 16.61% 15.19% 19.96%

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Accenture PLC adjusted net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Accenture PLC adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Accenture PLC adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

Accenture PLC, Profitability Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

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Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc 5,906,809  5,107,839  4,779,112  4,059,907  3,445,149  4,111,892 
Revenues 50,533,389  44,327,039  43,215,013  41,603,428  36,765,478  34,797,661 
Profitability Ratio
Net profit margin1 11.69% 11.52% 11.06% 9.76% 9.37% 11.82%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Accenture plc 5,906,858  5,107,061  4,777,447  4,061,057  3,446,724  4,113,250 
Revenues 50,533,389  44,327,039  43,215,013  41,603,428  36,765,478  34,797,661 
Profitability Ratio
Adjusted net profit margin2 11.69% 11.52% 11.06% 9.76% 9.37% 11.82%

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

2021 Calculations

1 Net profit margin = 100 × Net income attributable to Accenture plc ÷ Revenues
= 100 × 5,906,809 ÷ 50,533,389 = 11.69%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Accenture plc ÷ Revenues
= 100 × 5,906,858 ÷ 50,533,389 = 11.69%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Accenture PLC adjusted net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Equity (ROE)

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Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc 5,906,809  5,107,839  4,779,112  4,059,907  3,445,149  4,111,892 
Total Accenture plc shareholders’ equity 19,529,454  17,000,536  14,409,008  10,364,753  8,949,477  7,555,262 
Profitability Ratio
ROE1 30.25% 30.05% 33.17% 39.17% 38.50% 54.42%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Accenture plc 5,906,858  5,107,061  4,777,447  4,061,057  3,446,724  4,113,250 
Total Accenture plc shareholders’ equity 19,529,454  17,000,536  14,409,008  10,364,753  8,949,477  7,555,262 
Profitability Ratio
Adjusted ROE2 30.25% 30.04% 33.16% 39.18% 38.51% 54.44%

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

2021 Calculations

1 ROE = 100 × Net income attributable to Accenture plc ÷ Total Accenture plc shareholders’ equity
= 100 × 5,906,809 ÷ 19,529,454 = 30.25%

2 Adjusted ROE = 100 × Adjusted net income attributable to Accenture plc ÷ Total Accenture plc shareholders’ equity
= 100 × 5,906,858 ÷ 19,529,454 = 30.25%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Accenture PLC adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Return on Assets (ROA)

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Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc 5,906,809  5,107,839  4,779,112  4,059,907  3,445,149  4,111,892 
Total assets 43,175,843  37,078,593  29,789,880  24,449,083  22,689,890  20,609,004 
Profitability Ratio
ROA1 13.68% 13.78% 16.04% 16.61% 15.18% 19.95%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Accenture plc 5,906,858  5,107,061  4,777,447  4,061,057  3,446,724  4,113,250 
Total assets 43,175,843  37,078,593  29,789,880  24,449,083  22,689,890  20,609,004 
Profitability Ratio
Adjusted ROA2 13.68% 13.77% 16.04% 16.61% 15.19% 19.96%

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

2021 Calculations

1 ROA = 100 × Net income attributable to Accenture plc ÷ Total assets
= 100 × 5,906,809 ÷ 43,175,843 = 13.68%

2 Adjusted ROA = 100 × Adjusted net income attributable to Accenture plc ÷ Total assets
= 100 × 5,906,858 ÷ 43,175,843 = 13.68%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Accenture PLC adjusted ROA deteriorated from 2019 to 2020 and from 2020 to 2021.