Stock Analysis on Net
Stock Analysis on Net

Accenture PLC (NYSE:ACN)

Common-Size Income Statement 

Accenture PLC, common-size consolidated income statement

Microsoft Excel
12 months ended: Aug 31, 2025 Aug 31, 2024 Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020
Revenues 100.00 100.00 100.00 100.00 100.00 100.00
Cost of services -68.09 -67.39 -67.66 -68.01 -67.62 -68.47
Gross profit 31.91% 32.61% 32.34% 31.99% 32.38% 31.53%
Sales and marketing -10.11 -10.55 -10.27 -9.92 -10.46 -10.44
General and administrative costs -6.24 -6.60 -6.67 -6.86 -6.84 -6.40
Business optimization costs -0.88 -0.68 -1.66 0.00 0.00 0.00
Operating income 14.68% 14.79% 13.74% 15.21% 15.08% 14.69%
Interest income 0.48 0.42 0.44 0.07 0.07 0.16
Interest expense -0.33 -0.09 -0.07 -0.08 -0.12 -0.07
Other income (expense), net -0.09 -0.17 0.15 -0.12 0.33 0.51
Loss on disposition of Russia business 0.00 0.00 0.00 -0.16 0.00 0.00
Income before income taxes 14.74% 14.95% 14.26% 14.93% 15.36% 15.28%
Income tax expense -3.50 -3.51 -3.33 -3.58 -3.50 -3.58
Net income 11.24% 11.43% 10.92% 11.35% 11.85% 11.70%
Net income attributable to noncontrolling interests -0.22 -0.24 -0.21 -0.18 -0.17 -0.17
Net income attributable to Accenture plc 11.02% 11.19% 10.72% 11.17% 11.69% 11.52%

Based on: 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-08-31), 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).

The common-size income statement reveals several trends in the company’s profitability and cost structure over the six-year period. Revenues are consistently represented as 100%, allowing for a clear view of how each line item contributes to overall performance as a percentage of sales. Gross profit remained relatively stable, fluctuating between 31.53% and 32.61% of revenues. Operating income experienced more volatility, decreasing from 15.08% in 2021 to 13.74% in 2023 before recovering to 14.79% and 14.68% in the final two years.

Cost of Services
Cost of services consistently represented a significant portion of revenues, ranging from approximately 67.39% to 68.47%. A slight downward trend is observed from 2020 to 2024, followed by a slight increase in 2025. This suggests some efficiency gains in service delivery, though the impact is modest.
Sales and Marketing & General and Administrative Costs
Sales and marketing expenses remained relatively consistent, fluctuating around 10% of revenues. General and administrative costs demonstrated a gradual decline as a percentage of revenues, decreasing from 6.84% in 2021 to 6.24% in 2025, indicating improved operational efficiency in these areas.
Operating Income
Operating income peaked in 2021 and 2022, at 15.08% and 15.21% respectively, before declining to 13.74% in 2023. The subsequent recovery to 14.79% and 14.68% suggests a rebound in operational performance. The dip in 2023 is partially attributable to the introduction of business optimization costs.
Business Optimization Costs
Business optimization costs were introduced in 2023 at 1.66% of revenues and decreased to 0.88% in 2025. These costs appear to be a temporary factor impacting operating income, with a decreasing effect over time.
Non-Operating Items
Interest income as a percentage of revenues increased from 0.07% to 0.48% over the period, while interest expense remained relatively stable until 2025, when it increased to 0.33%. Other income (expense), net, fluctuated, with a negative impact in 2022 and 2024. A loss on the disposition of the Russia business impacted results in 2022, representing 0.16% of revenues.
Net Income
Net income followed a similar pattern to operating income, peaking at 11.85% in 2021 and declining to 10.72% in 2023 before recovering to 11.19% and 11.02%. Net income attributable to Accenture plc mirrored this trend. The income tax expense remained consistently around 3.5% of revenues.

Overall, the company demonstrated a generally stable performance with some fluctuations influenced by non-recurring items and the introduction of business optimization costs. The gradual decline in general and administrative expenses is a positive sign, while the increasing interest expense in the final year warrants monitoring.