Stock Analysis on Net
Stock Analysis on Net

Accenture PLC (NYSE:ACN)

Analysis of Investments

Microsoft Excel

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

Microsoft Excel
12 months ended: Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018
Net income attributable to Accenture plc (as reported) 6,871,557 6,877,169 5,906,809 5,107,839 4,779,112 4,059,907
Add: Investments, net of tax — — 49 (778) (1,665) 1,150
Net income attributable to Accenture plc (adjusted) 6,871,557 6,877,169 5,906,858 5,107,061 4,777,447 4,061,057

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).

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

Accenture PLC, adjusted profitability ratios

Microsoft Excel
Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018
Net Profit Margin
Reported net profit margin 10.72% 11.17% 11.69% 11.52% 11.06% 9.76%
Adjusted net profit margin 10.72% 11.17% 11.69% 11.52% 11.06% 9.76%
Return on Equity (ROE)
Reported ROE 26.75% 31.11% 30.25% 30.05% 33.17% 39.17%
Adjusted ROE 26.75% 31.11% 30.25% 30.04% 33.16% 39.18%
Return on Assets (ROA)
Reported ROA 13.41% 14.55% 13.68% 13.78% 16.04% 16.61%
Adjusted ROA 13.41% 14.55% 13.68% 13.77% 16.04% 16.61%

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).

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 deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by 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 adjusted net income divided by total assets. Accenture PLC adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Accenture PLC, Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
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
Revenues 64,111,745 61,594,305 50,533,389 44,327,039 43,215,013 41,603,428
Profitability Ratio
Net profit margin1 10.72% 11.17% 11.69% 11.52% 11.06% 9.76%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Accenture plc 6,871,557 6,877,169 5,906,858 5,107,061 4,777,447 4,061,057
Revenues 64,111,745 61,594,305 50,533,389 44,327,039 43,215,013 41,603,428
Profitability Ratio
Adjusted net profit margin2 10.72% 11.17% 11.69% 11.52% 11.06% 9.76%

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 Net profit margin = 100 × Net income attributable to Accenture plc ÷ Revenues
= 100 × 6,871,557 ÷ 64,111,745 = 10.72%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Accenture plc ÷ Revenues
= 100 × 6,871,557 ÷ 64,111,745 = 10.72%

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 deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Accenture plc 6,871,557 6,877,169 5,906,858 5,107,061 4,777,447 4,061,057
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
Adjusted ROE2 26.75% 31.11% 30.25% 30.04% 33.16% 39.18%

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

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

Adjusted Return on Assets (ROA)

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Accenture plc 6,871,557 6,877,169 5,906,858 5,107,061 4,777,447 4,061,057
Total assets 51,245,305 47,263,390 43,175,843 37,078,593 29,789,880 24,449,083
Profitability Ratio
Adjusted ROA2 13.41% 14.55% 13.68% 13.77% 16.04% 16.61%

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

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