Accenture PLC (NYSE:ACN)

Buildings and Land

The value for buildings and land showed a minimal figure in the first two years, with a slight decrease from 61,000 to 60,000 US dollars in thousands. However, in the third year, there is a significant increase to 5,609,000 US dollars, followed by no reported values in the subsequent years. This irregular pattern suggests a possible reclassification, disposal, or no additional acquisitions recorded after the spike.

Computers, Related Equipment, and Software

This category demonstrates a steady upward trend over the entire period, increasing from 1,978,380 to 2,260,910 US dollars in thousands. Despite a slight dip in the fourth year, values quickly recovered and continued to grow, indicating ongoing investment and upgrades in technology assets.

Furniture and Fixtures

The value for furniture and fixtures peaked early and then gradually declined from 456,136 to a low of 431,516 US dollars in thousands by the fifth year. The sixth year shows a modest recovery to 447,533, suggesting some refurbishment or additions, but overall the trend is relatively flat with a mild downward tendency.

Leasehold Improvements

Leasehold improvements exhibit consistent growth each year, rising from 1,424,722 to 1,784,561 US dollars in thousands. This steady increase indicates continuous enhancements or expansions in leased properties over the period analyzed.

Property and Equipment, Gross

The gross property and equipment value shows a progressive upward trajectory, moving from 3,859,299 to 4,493,004 US dollars in thousands. Despite a minor dip in the fourth year, the overall increase suggests the company’s consistent investment in fixed assets.

Accumulated Depreciation

Accumulated depreciation has increased steadily in magnitude (noting the negative values), growing from -2,313,731 to -2,926,630 US dollars in thousands. This is in line with aging assets and ongoing depreciation charges, reflecting the consumption of the company's property and equipment over time.

Property and Equipment, Net

The net property and equipment value reveals more variability. It rose from 1,545,568 to a peak of 1,659,140 US dollars in thousands during the third year, followed by a decline through the fourth and fifth years, reaching 1,521,119. The last year shows a slight recovery to 1,566,374. This fluctuation may result from the net effect of asset acquisitions, disposals, and accumulated depreciation impacting the net book value of property and equipment.

Average Age Ratio

The average age ratio of property, plant, and equipment exhibits a generally increasing trend over the period analyzed. Starting at 59.95% in 2020, it remained relatively stable through 2021 and 2022 at just above 59%, then rose notably to 62.73% in 2023. This upward trajectory continued, reaching 65.14% by 2025, indicating an aging asset base and possibly slower asset renewal or replacement.

Estimated Total Useful Life

The estimated total useful life of the assets fluctuates between 7 and 8 years during the period. It begins at 8 years in 2020 and 2021, decreases to 7 years in 2022 and 2023, then briefly returns to 8 years in 2024 before falling back to 7 years in 2025. The variability in estimated useful life could reflect changes in asset composition or revised management estimates of asset longevity.

Estimated Age, Time Elapsed Since Purchase

The estimated age of assets shows minor variation, starting at 5 years in 2020 and 2021, decreasing to 4 years in 2022 and 2023, and returning back to 5 years in 2024 and 2025. This pattern may indicate asset replacement activity or the acquisition of newer assets, which temporarily lowers the average age before stabilizing.

Estimated Remaining Life

The estimated remaining life remains fairly consistent, generally at 3 years, except for a slight dip to 2 years in 2023. This temporary decrease aligns with the increase in average age ratio that year, suggesting that assets were nearing the end of their useful life during this period. The recovery to 3 years in subsequent years suggests some replenishment or reassessment extending asset life estimates.

Property and Equipment, Gross

The gross value of property and equipment shows a generally upward trend over the six-year period. It increased from approximately $3.86 billion in 2020 to about $4.49 billion in 2025. The growth is steady with a slight dip between 2022 and 2023, where the value decreased from roughly $4.15 billion to around $4.10 billion, before rising again in subsequent years.

Accumulated Depreciation

Accumulated depreciation consistently increased each year, rising from approximately $2.31 billion in 2020 to around $2.93 billion in 2025. This steady increase indicates ongoing depreciation expense impacting the asset base, reflecting usage and obsolescence over time.

Average Age Ratio (%)

The average age ratio of property and equipment increased from about 59.95% in 2020 to approximately 65.14% in 2025. The rise in this ratio suggests that, on average, the assets are aging, which could imply slower asset renewal or extended use of existing assets. Notably, the increase is gradual, with more pronounced growth after 2021, indicating a potential slowing in new capital expenditure or acquisitions relative to depreciation.

Overall Analysis

The data depicts a scenario where the company is maintaining a growing asset base in terms of gross property and equipment, with the value rising steadily despite a minor decline in 2023. However, the increasing accumulated depreciation and rising average age ratio jointly signify aging assets. This combination may warrant attention to asset replacement strategies, as the aging asset base could impact operational efficiency and maintenance costs in the future.

Property and Equipment, Gross

The gross value of property and equipment shows a generally upward trend over the analyzed periods. Starting from approximately 3.86 billion USD in 2020, it increased steadily to about 4.15 billion USD in 2022, experienced a slight decline in 2023, and then resumed growth, reaching approximately 4.49 billion USD by 2025. This overall increase suggests ongoing investments in fixed assets or acquisitions of property and equipment over time, despite a minor dip in the 2023 period.

Depreciation Expense

The depreciation expense increased from about 482 million USD in 2020 to a peak of approximately 621 million USD in 2023. However, there was a notable decrease in 2024 to roughly 548 million USD, followed by a rebound to around 622 million USD in 2025. This pattern indicates fluctuations in the consumption or allocation of asset value over time, potentially reflecting changes in asset base, depreciation methods, or revised estimates. The sharp increase between 2021 and 2023 reflects accelerated consumption of asset value during those years.

Estimated Total Useful Life

The estimated total useful life of property and equipment was consistently at 8 years in 2020 and 2021. From 2022, it decreased to 7 years, alternated back to 8 years in 2024, and returned again to 7 years in 2025. The variation in useful life estimates may be due to changes in asset composition, reassessment of asset longevity, or updated depreciation policies. Changes in estimated useful life impact the annual depreciation expense calculation and thus influence reported expenses.

Overall Insights

The data exhibits growth in the gross property and equipment base over the long term, indicating sustained capital investments. Depreciation expenses correlate with these changes but show variability likely linked to adjustments in asset useful lives and possible shifts in the asset mix or depreciation approach. Fluctuations in estimated useful life reflect periodic reassessment of asset durability, which directly affects depreciation expense trends. The minor dip in gross property and equipment in 2023 warrants further review to determine if it resulted from asset disposals, write-downs, or other factors.

The analysis of the property, plant, and equipment financial data reveals several notable trends and patterns over the reported periods.

Accumulated Depreciation

The accumulated depreciation consistently increased each year from US$2,313,731 thousand in 2020 to US$2,926,630 thousand in 2025. This upward trajectory indicates ongoing usage and aging of the company's tangible fixed assets, with the total depreciated value growing by approximately 26% over the six-year span.

Depreciation Expense

The depreciation expense shows a generally increasing pattern from 2020 through 2023, rising from US$482,054 thousand to a peak of US$620,659 thousand. However, in 2024 there is a noticeable dip to US$547,935 thousand before it increases again in 2025 to US$622,493 thousand. This variability suggests fluctuations in either the asset base or changes in depreciation methods or policies in the interim periods.

Time Elapsed Since Purchase

The average age of the assets, measured as time elapsed since purchase, remained relatively stable with a slight decline from 5 years in 2020 and 2021 to 4 years in 2022 and 2023, then reverting back to 5 years for 2024 and 2025. This may reflect a pattern of asset replacement or acquisition cycles where newer assets temporarily lowered the average age before it stabilized again.

Overall, the data indicate steady growth in the accumulated depreciation, consistent with asset aging and utilization, alongside fluctuations in annual depreciation expense that may reflect varying investment or asset management strategies. The relatively constant average asset age suggests a balanced approach to asset renewal and retention.

Property and Equipment, Net

The net value of property and equipment demonstrates a relatively stable trend over the examined period with minor fluctuations. It increased from approximately 1.55 billion in 2020 to a peak near 1.66 billion in 2022, followed by a decline to around 1.52 billion by 2024, before experiencing a modest rebound to approximately 1.57 billion in 2025. This pattern suggests a phase of asset accumulation or revaluation until 2022, subsequently followed by asset disposals, impairments, or reduced capital expenditure until 2024, and a slight recovery in the most recent year.

Depreciation Expense

Depreciation expense shows a generally increasing trajectory from 482 million in 2020 to 623 million in 2023, indicating rising amortization costs consistent with either increased asset base or accelerated depreciation methods. The expense fluctuates thereafter, declining to approximately 548 million in 2024 before rising again to about 622 million in 2025. These variations may reflect changes in asset composition, depreciation policy adjustments, or disposal of older assets influencing the expense pattern.

Estimated Remaining Life of Assets

The estimated remaining life of assets remained constant at three years for most of the period, except for a dip to two years in 2023. This reduction suggests a reassessment of asset longevity, possibly due to accelerated aging, changes in asset utilization, or revaluation impacting the useful life estimate. The life expectancy returned to three years thereafter, indicating stabilization in asset aging assumptions.

Overall Insights

The overall data reflect a relatively steady asset base with temporary volatility around 2022-2024, likely associated with asset turnover, impairment, or investment cycles. Increasing depreciation expense aligns with an aging portfolio or revision in depreciation strategy. The adjustment in estimated asset life in 2023 suggests a one-time reassessment impacting depreciation scheduling. These factors combined indicate active asset management, balancing investment, utilization, and accounting estimates over the period.