Common-Size Income Statement
Quarterly Data
Accenture PLC, common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-K (reporting date: 2024-08-31), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-K (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-K (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-K (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-K (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30).
The financial data reveals several notable trends in revenue composition and profitability ratios over the observed periods.
- Cost of Services
- The cost of services as a percentage of revenues fluctuates within a range approximately between 66.4% and 70.8%, exhibiting some volatility but no clear long-term upward or downward trend. Periodic decreases are seen around May and November quarters, suggesting possible seasonal or operational factors influencing cost efficiency.
- Gross Profit
- Gross profit margin shows a corresponding inverse pattern to cost of services, fluctuating roughly between 29.2% and 33.6%. The margin tends to peak near some quarters where cost of services is at a trough, indicating maintained gross profitability relative to revenues over time, despite occasional dips such as in February 2019 and February 2025.
- Operating Expenses
- Sales and marketing expenses as a percentage of revenues mostly hover near 10%, with small fluctuations ranging from about 9.4% to 11.3%. General and administrative costs remain fairly stable, though with a slight upward bias, ranging from 5.6% to 7.4%. Notably, there's an emergence of business optimization costs starting around early 2023, peaking at near 2.95%, which could reflect restructuring or efficiency initiatives.
- Operating Income
- Operating income margin exhibits volatility between approximately 11.97% and 16.83%. Notable troughs occur around the first quarters of 2023 and 2025, coinciding with higher business optimization costs and fluctuating operating expenses. However, the margin generally rebounds, indicating resilience in operating profitability despite cost pressures.
- Interest Income and Expense
- Interest income remains low relative to revenues but shows a gradual increase over time, especially after 2020, rising from around 0.04% to peaks near 0.65%, possibly reflecting improved investment returns or changes in cash management. Interest expense remains minimal but shows some spikes, notably around May 2025 reaching nearly -0.39%, which may reflect increased borrowing costs or debt levels.
- Other Income (Expense), Net
- This item displays variability with several periods of positive and negative contributions. Noteworthy are spikes around August 2020 and May 2023, which correspond to periods of positive other income exceeding 1%, potentially linked to one-time events or gains. Negative values during some quarters suggest occasional expenses or losses impacting net income.
- Loss on Disposition of Russia Business
- A one-time recorded loss appears around February 2022, reflecting approximately -0.6% of revenues. This non-recurring charge likely impacted net results for that period.
- Income Before Income Taxes
- This metric closely tracks operating income but occasionally exceeds it after factoring other income and expenses. Values range between about 11.97% and 16.89%, showing a consistent positive income before tax margin overall.
- Income Tax Expense
- Income tax expense as a percentage of revenues is somewhat volatile, fluctuating between approximately -2.25% and -4.18%. Lower tax rates appear in early 2023 and 2025, potentially due to tax planning or changes in taxable income composition.
- Net Income
- Net income margin reflects the combined effect of all above components, maintaining a generally positive and stable profile between about 8.6% and 13.1%. There are noticeable dips in February 2023 and August 2023 to under 9%, reflecting operational challenges or extraordinary costs in those quarters. Noncontrolling interests consistently reduce net income by about 0.15% to 0.3% of revenues.
- Net Income Attributable to Accenture plc
- The net income attributable to the parent company mirrors overall net income trends, fluctuating between approximately 8.6% and 12.9%. This indicates the primary shareholder’s share of earnings remains robust despite minor quarterly variations.
Overall, while the cost structure and profitability margins experience periodic fluctuations, the data demonstrates sustained operational profitability and effective cost management across most periods. Emerging business optimization costs suggest strategic adjustments, and fluctuating other income impacts income variability. The loss related to the Russia business represents a notable exception within the otherwise stable performance trends.