Stock Analysis on Net

Accenture PLC (NYSE:ACN)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Accenture PLC, ROE, long-term trends, calculation

Microsoft Excel

Based on: 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), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).

1 US$ in thousands


Net Income
The net income attributable to Accenture plc shows a general upward trend over the period from 2005 to 2024. Starting at approximately 940 million USD in 2005, the figure increased steadily with some fluctuations, reaching about 7.26 billion USD by 2024. Noteworthy is the significant jump observable between 2012 and 2013, as well as between 2015 and 2016, reflecting periods of accelerated profitability growth. Although minor declines or stagnations appear, such as in 2013-2014 and 2022-2023, the overall profit trajectory remains positive.
Total Shareholders’ Equity
Total shareholders’ equity has demonstrated consistent expansion over the same timeframe. Beginning at approximately 1.7 billion USD in 2005, the equity base more than doubled by 2012 and continued to grow substantially thereafter, surpassing 28 billion USD by 2024. This steady accumulation of equity indicates sustained reinvestment of earnings and potentially capital raising activities, underpinning the company's financial strength and capacity for growth.
Return on Equity (ROE)
The ROE shows a declining trend despite growth in net income and equity. Initially very high at 55.42% in 2005, ROE peaked around 2008 at 66.59%, indicating highly efficient use of equity capital. However, from 2009 onward, there is a clear downward slope, declining to 25.68% by 2024. This decrease suggests that although net income is increasing, it is growing at a slower rate relative to the growth in shareholders' equity, resulting in reduced equity efficiency over time.
Overall Analysis
The data reflects a mature company experiencing substantial growth in both profitability and equity base. The increase in net income combined with the expansion of shareholders’ equity indicates successful business scaling and capital formation. The declining ROE, however, signals a reduction in the effectiveness of equity utilization which may be due to significant equity infusions, changes in capital structure, or a deceleration in profit margin expansion relative to capital growth. These financial trends suggest a strategic emphasis on long-term capital growth possibly at the expense of short-term efficiency in equity usage.

Comparison to Competitors

Accenture PLC, ROE, long-term trends, comparison to competitors

Microsoft Excel

Based on: 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), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)