Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.

Return on Invested Capital (ROIC)
Decomposition of ROIC
Operating Profit Margin (OPM)
Turnover of Capital (TO)
Effective Cash Tax Rate (CTR)

Accenture PLC, ROIC calculation, comparison to benchmarks

		Aug 31, 2025	Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
	Selected Financial Data (US$ in thousands)
	Net operating profit after taxes (NOPAT)¹
	Invested capital²
	Performance Ratio
	ROIC³
	Benchmarks
	ROIC, Competitors⁴
	Adobe Inc.
	Cadence Design Systems Inc.
	CrowdStrike Holdings Inc.
	Datadog Inc.
	International Business Machines Corp.
	Intuit Inc.
	Microsoft Corp.
	Oracle Corp.
	Palantir Technologies Inc.
	Palo Alto Networks Inc.
	Salesforce Inc.
	ServiceNow Inc.
	Synopsys Inc.
	Workday Inc.

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).

¹ NOPAT. See details »

² Invested capital. See details »

³ 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =

⁴ Click competitor name to see calculations.

Net Operating Profit After Taxes (NOPAT): The net operating profit after taxes has demonstrated a generally positive upward trend over the examined periods. Starting at approximately 6.01 billion USD, it increased consistently through to a projection above 9.11 billion USD by the last assessed date. This indicates a steady growth in operational profitability after tax impacts, aside from a slight dip observed between 2022 and 2023.
Invested Capital: Invested capital has shown a significant and continuous increase over the years, growing from around 22.85 billion USD to over 45.31 billion USD by the final period. This growth implies substantial additional capital deployment into the business or asset base, effectively doubling the invested capital within the timeframe.
Return on Invested Capital (ROIC): ROIC has declined steadily across the periods reported, dropping from 26.3% to just above 20.1%. This downward trend suggests the company is generating less profit per unit of invested capital than in previous years, which may reflect reduced efficiency or increased capital costs relative to profit generation despite rising absolute profits.
Overall Insights: While profitability in absolute terms is increasing, as shown by the rising NOPAT, the substantial capital investment has grown at a faster pace, leading to a declining ROIC metric. This divergence suggests that additional capital may not be yielding proportional returns, indicating potential diminishing returns on incremental investments or other operational challenges affecting capital efficiency.

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Accenture PLC, decomposition of ROIC


	ROIC	=	OPM¹	×	TO²	×	1 – CTR³
Aug 31, 2025		=		×		×
Aug 31, 2024		=		×		×
Aug 31, 2023		=		×		×
Aug 31, 2022		=		×		×
Aug 31, 2021		=		×		×
Aug 31, 2020		=		×		×

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).

¹ Operating profit margin (OPM). See calculations »

² Turnover of capital (TO). See calculations »

³ Effective cash tax rate (CTR). See calculations »

Operating Profit Margin (OPM): The operating profit margin exhibits a slight downward trend from 16.59% in 2020 to 14.56% in 2023, indicating a reduction in operating efficiency or increased costs over this period. However, there is a subsequent recovery in 2024 and 2025, rising to 15.15% and 15.87% respectively, suggesting an improvement in operational profitability towards the latter years.
Turnover of Capital (TO): The turnover of capital ratio shows a general declining pattern over the six-year period, decreasing from 1.97 in 2020 to 1.56 in 2025. This suggests a decreasing efficiency in utilizing capital to generate revenue, potentially indicating slower asset turnover or increased asset base relative to sales.
1 – Effective Cash Tax Rate (CTR): This metric remains relatively stable with minor fluctuations, starting at 80.66% in 2020 and ending slightly higher at 81.38% in 2025. The lowest point is observed around 2022 and 2023 (~74%), indicating varying taxable income or tax planning effects, but overall, the effective cash tax burden remains consistently high.
Return on Invested Capital (ROIC): The return on invested capital demonstrates a clear decreasing trend over the period from 26.3% in 2020 to 20.11% in 2025. This consistent decline implies diminishing returns on the company’s capital investments, which may reflect increased capital costs, reduced profitability, or less efficient capital allocation in recent years.

Accenture PLC, OPM calculation, comparison to benchmarks

		Aug 31, 2025	Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
	Selected Financial Data (US$ in thousands)
	Net operating profit after taxes (NOPAT)¹
	Add: Cash operating taxes²
	Net operating profit before taxes (NOPBT)

	Revenues
	Add: Increase (decrease) in deferred revenues
	Adjusted revenues
	Profitability Ratio
	OPM³
	Benchmarks
	OPM, Competitors⁴
	Adobe Inc.
	Cadence Design Systems Inc.
	CrowdStrike Holdings Inc.
	Datadog Inc.
	International Business Machines Corp.
	Intuit Inc.
	Microsoft Corp.
	Oracle Corp.
	Palantir Technologies Inc.
	Palo Alto Networks Inc.
	Salesforce Inc.
	ServiceNow Inc.
	Synopsys Inc.
	Workday Inc.

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).

¹ NOPAT. See details »

² Cash operating taxes. See details »

³ 2025 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues
= 100 × ÷ =

⁴ Click competitor name to see calculations.

Net Operating Profit Before Taxes (NOPBT): The net operating profit before taxes shows an overall upward trend across the examined periods. Starting at approximately 7.45 billion USD, it increased steadily year over year, reaching around 11.2 billion USD by the latest period. Notably, there was a slight decline between the third and fourth periods; however, the profit rebounded and continued to grow in subsequent periods, indicating positive operational performance and growing profitability before tax expenses.
Adjusted Revenues: Adjusted revenues experienced substantial growth throughout the periods, increasing from roughly 44.9 billion USD to about 70.6 billion USD. This represents a significant expansion in revenue base, which supports the observed increases in profitability. The revenue growth was consistent though the rate of increase showed some variation, with a more pronounced jump between the second and third periods and more moderate growth in later periods.
Operating Profit Margin (OPM): The operating profit margin exhibited some fluctuations over the years. Starting at 16.59%, the margin increased marginally in the subsequent period to 16.65%, then declined to 15.48% and further to 14.56%. After that, there was a positive recovery trend, with margins rising to 15.15% and 15.87% in the last two periods. While the margin values have fluctuated, the recovery toward the end of the timeframe suggests improvements in operating efficiency or cost management relative to revenue.
Overall Insights: The data indicates robust revenue growth alongside increasing net operating profit before taxes, reflecting growth in both scale and operational profitability. Although the operating profit margin experienced some periods of compression, the recent margin recovery points to a potential stabilization and slight improvement in profitability relative to revenue. The company's ability to grow revenues while maintaining and recovering operating margins is a positive indicator of financial health and operational effectiveness over the observed periods.

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Accenture PLC, TO calculation, comparison to benchmarks

		Aug 31, 2025	Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
	Selected Financial Data (US$ in thousands)
	Revenues
	Add: Increase (decrease) in deferred revenues
	Adjusted revenues

	Invested capital¹
	Efficiency Ratio
	TO²
	Benchmarks
	TO, Competitors³
	Adobe Inc.
	Cadence Design Systems Inc.
	CrowdStrike Holdings Inc.
	Datadog Inc.
	International Business Machines Corp.
	Intuit Inc.
	Microsoft Corp.
	Oracle Corp.
	Palantir Technologies Inc.
	Palo Alto Networks Inc.
	Salesforce Inc.
	ServiceNow Inc.
	Synopsys Inc.
	Workday Inc.

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).

¹ Invested capital. See details »

² 2025 Calculation
TO = Adjusted revenues ÷ Invested capital
= ÷ =

³ Click competitor name to see calculations.

Revenue Trends: The adjusted revenues demonstrate a consistent upward trajectory over the analyzed period. Starting from approximately $44.9 billion in 2020, revenues increased steadily each year, reaching about $70.6 billion by 2025. This reflects sustained growth in sales or services rendered, with notable acceleration between 2023 and 2025.
Invested Capital Dynamics: Invested capital has also increased substantially during the same timeframe. From roughly $22.8 billion in 2020, invested capital rose every year to reach $45.3 billion in 2025. The growth rate of invested capital appears to be more pronounced compared to revenue growth, particularly in the latter years of the period.
Turnover of Capital (TO) Analysis: Turnover of capital, which measures efficiency by relating revenues to invested capital, shows a declining trend. Initially at 1.97 in 2020, it fluctuated slightly but overall moved downward to 1.56 by 2025. This downward trend suggests that for each unit of invested capital, the revenue generated is decreasing slightly over time, indicating either lower efficiency in utilizing capital or an increase in capital intensity of the business.
Overall Insights: The company is experiencing robust growth in revenues alongside significant increases in invested capital. However, the declining turnover of capital ratio points to a potential reduction in capital efficiency. While revenues are growing, the pace of growth in invested capital outstrips revenue growth, which could signal a strategic emphasis on expanding asset base or capabilities that might yield returns over a longer term. This pattern may require further monitoring to ensure that capital deployment remains effective.

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Accenture PLC, CTR calculation, comparison to benchmarks

		Aug 31, 2025	Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
	Selected Financial Data (US$ in thousands)
	Net operating profit after taxes (NOPAT)¹
	Add: Cash operating taxes²
	Net operating profit before taxes (NOPBT)
	Tax Rate
	CTR³
	Benchmarks
	CTR, Competitors⁴
	Adobe Inc.
	Cadence Design Systems Inc.
	CrowdStrike Holdings Inc.
	Datadog Inc.
	International Business Machines Corp.
	Intuit Inc.
	Microsoft Corp.
	Oracle Corp.
	Palantir Technologies Inc.
	Palo Alto Networks Inc.
	Salesforce Inc.
	ServiceNow Inc.
	Synopsys Inc.
	Workday Inc.

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).

¹ NOPAT. See details »

² Cash operating taxes. See details »

³ 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =

⁴ Click competitor name to see calculations.

Net Operating Profit Before Taxes (NOPBT): The net operating profit before taxes shows a generally increasing trend over the observed period. Starting from approximately 7.45 billion US dollars in the year ending August 31, 2020, the NOPBT rose steadily each year, reaching nearly 11.2 billion US dollars by August 31, 2025. There is a slight dip in the year ending August 31, 2023, but the overall trajectory remains upward indicating improving operational profitability.
Cash Operating Taxes: Cash operating taxes also display an upward trend from 1.44 billion US dollars in 2020 to a peak of around 2.45 billion US dollars in 2022. After 2022, the tax payments show a decline, dropping to approximately 2.09 billion US dollars by 2025. This decline in cash taxes despite increasing profitability suggests effective tax management or changes in tax policy or strategy.
Effective Cash Tax Rate (CTR): The effective cash tax rate exhibited considerable fluctuations over the period. It started at 19.34% in 2020, increased steadily to a peak of 25.55% in 2022, then gradually declined to 18.62% by 2025. The initial increase aligns with rising tax payments, whereas the subsequent decrease despite rising profits aligns with the reduction in cash taxes, implying improved tax efficiency or beneficial tax planning measures in recent years.
Overall Observations: The overall financial pattern suggests the company achieved consistent growth in operating profits. The cash taxes paid increased initially but were controlled effectively from 2023 onwards, leading to a reduction in the effective tax rate. This indicates a positive trend in profitability coupled with enhanced tax efficiency measures that contribute to preserving cash flows. Such patterns are favorable for sustaining operational strength and potentially improving shareholder value.

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Accenture PLC (NYSE:ACN)

Return on Capital (ROC)

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Return on Invested Capital (ROIC)

Decomposition of ROIC

Operating Profit Margin (OPM)

Turnover of Capital (TO)

Effective Cash Tax Rate (CTR)