Stock Analysis on Net

Accenture PLC (NYSE:ACN)

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

Accenture PLC, adjustments to financial statements

US$ in thousands

Microsoft Excel
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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 3,839,556 3,651,481
Total assets (adjusted) 51,245,305 47,263,390 43,175,843 37,078,593 33,629,436 28,100,564
Adjustment to Total Debt
Total debt (as reported) 147,903 55,068 65,553 61,872 22,658 25,013
Add: Operating lease liability (before adoption of FASB Topic 842)2 3,839,556 3,651,481
Add: Current operating lease liabilities 690,417 707,598 744,164 756,057
Add: Non-current operating lease liabilities 2,310,714 2,563,090 2,696,917 2,667,584
Total debt (adjusted) 3,149,034 3,325,756 3,506,634 3,485,513 3,862,214 3,676,494

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).

1, 2 Equal to total present value of future operating lease payments.


Accenture PLC, Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Accenture PLC, adjusted financial ratios

Microsoft Excel
Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018
Total Asset Turnover1
Reported total asset turnover 1.25 1.30 1.17 1.20 1.45 1.70
Adjusted total asset turnover 1.25 1.30 1.17 1.20 1.29 1.48
Debt to Equity2
Reported debt to equity 0.01 0.00 0.00 0.00 0.00 0.00
Adjusted debt to equity 0.12 0.15 0.18 0.21 0.27 0.35
Return on Assets3 (ROA)
Reported ROA 13.41% 14.55% 13.68% 13.78% 16.04% 16.61%
Adjusted ROA 13.41% 14.55% 13.68% 13.78% 14.21% 14.45%

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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Accenture PLC adjusted debt to equity ratio improved from 2021 to 2022 and 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 deteriorated significantly from 2022 to 2023.

Accenture PLC, Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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)
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 Operating Leases
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 51,245,305 47,263,390 43,175,843 37,078,593 33,629,436 28,100,564
Activity Ratio
Adjusted total asset turnover2 1.25 1.30 1.17 1.20 1.29 1.48

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 ÷ 51,245,305 = 1.25

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.

Adjusted Debt to Equity

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)
Total debt 147,903 55,068 65,553 61,872 22,658 25,013
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
Debt to equity1 0.01 0.00 0.00 0.00 0.00 0.00
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt 3,149,034 3,325,756 3,506,634 3,485,513 3,862,214 3,676,494
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
Adjusted debt to equity2 0.12 0.15 0.18 0.21 0.27 0.35

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 Debt to equity = Total debt ÷ Total Accenture plc shareholders’ equity
= 147,903 ÷ 25,692,839 = 0.01

2 Adjusted debt to equity = Adjusted total debt ÷ Total Accenture plc shareholders’ equity
= 3,149,034 ÷ 25,692,839 = 0.12

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Accenture PLC adjusted debt-to-equity ratio improved from 2021 to 2022 and 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 for Operating Leases
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 51,245,305 47,263,390 43,175,843 37,078,593 33,629,436 28,100,564
Profitability Ratio
Adjusted ROA2 13.41% 14.55% 13.68% 13.78% 14.21% 14.45%

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 ÷ 51,245,305 = 13.41%

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 deteriorated significantly from 2022 to 2023.