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.
Paying users area
Try for free
Accenture PLC pages available for free this week:
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
The data is hidden behind: . Unhide it.
Get 1-month access to Accenture PLC for $19.99, or
get full access to the entire website for at least 3 months from $49.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Return on Invested Capital (ROIC)
Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Net operating profit after taxes (NOPAT)1 | |||||||
Invested capital2 | |||||||
Performance Ratio | |||||||
ROIC3 | |||||||
Benchmarks | |||||||
ROIC, Competitors4 | |||||||
Adobe Inc. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Visa Inc. |
Based on: 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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2021 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
Performance ratio | Description | The company |
---|---|---|
ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Accenture PLC ROIC improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Decomposition of ROIC
ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
---|---|---|---|---|---|---|---|
Aug 31, 2021 | = | × | × | ||||
Aug 31, 2020 | = | × | × | ||||
Aug 31, 2019 | = | × | × | ||||
Aug 31, 2018 | = | × | × | ||||
Aug 31, 2017 | = | × | × | ||||
Aug 31, 2016 | = | × | × |
Based on: 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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2021 year is the increase in effective cash tax rate (CTR).
Operating Profit Margin (OPM)
Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | ||
---|---|---|---|---|---|---|---|
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. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Visa Inc. |
Based on: 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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2021 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues
= 100 × ÷ =
4 Click competitor name to see calculations.
Profitability ratio | Description | The company |
---|---|---|
OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Accenture PLC OPM improved from 2019 to 2020 and from 2020 to 2021. |
Turnover of Capital (TO)
Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | ||
---|---|---|---|---|---|---|---|
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. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Visa Inc. |
Based on: 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).
1 Invested capital. See details »
2 2021 Calculation
TO = Adjusted revenues ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
Efficiency ratio | Description | The company |
---|---|---|
TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Accenture PLC TO deteriorated from 2019 to 2020 and from 2020 to 2021. |
Effective Cash Tax Rate (CTR)
Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | ||
---|---|---|---|---|---|---|---|
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. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Visa Inc. |
Based on: 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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2021 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
Tax rate | Description | The company |
---|---|---|
CTR | Effective cash tax rate on operating income. | Accenture PLC CTR decreased from 2019 to 2020 but then slightly increased from 2020 to 2021. |