Accenture PLC (NYSE:ACN)

The analysis of the financial metrics over the periods from 2019 to 2024 reveals several notable trends and shifts in key performance indicators.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios demonstrate a general decline from 2019 to 2024. The reported ratio decreased from 1.45 to 1.16, while the adjusted ratio, although slightly higher, also fell from 1.48 to 1.26. This indicates a diminishing efficiency in utilizing assets to generate revenue over time.

Current Ratio

The reported current ratio shows a moderate decline from 1.4 in 2019 and 2020 to 1.1 in 2024, suggesting a weakening short-term liquidity position. The adjusted current ratio mirrors this trend, dropping from 1.97 in 2019 and 2020 to 1.51 in 2024, though it remains at relatively healthier levels compared to the reported figures.

Debt to Equity and Debt to Capital

Reported debt to equity and debt to capital ratios remained negligible (at or near zero) through 2022 but started to increase slightly from 2023 onwards, reaching 0.04 and 0.03 respectively by 2024. Conversely, adjusted debt to equity and debt to capital ratios show a decreasing trend from 2019 to 2023, moving from 0.27 and 0.21 down to 0.11 and 0.10, respectively, before slightly rising in 2024. These patterns suggest cautious leveraging with an overall effort to maintain low financial risk, albeit with a slight uptick in debt levels more recently.

Financial Leverage

Reported financial leverage ratio exhibited a modest decline from 2.07 in 2019 to 1.98 in 2024, while the adjusted ratio declined more substantially from 2.03 to 1.66. This indicates a reduction in the use of debt financing relative to equity and potentially a more conservative capital structure over the period.

Net Profit Margin

The reported net profit margin maintained relative stability, fluctuating slightly around 11%, ending at 11.19% in 2024. In contrast, the adjusted net profit margin showed more volatility but generally remained above the reported figures, peaking at 13.85% in 2020 and settling around 11.93% in 2024. This reflects steady profitability with occasional periods of enhanced margin performance under adjusted conditions.

Return on Equity (ROE)

Reported ROE declined steadily from 33.17% in 2019 to 25.68% in 2024, indicating reduced returns for shareholders. The adjusted ROE also declined, with a sharper decrease from a high of 34.76% in 2020 to 24.84% in 2024, highlighting a weakening of equity returns in recent years.

Return on Assets (ROA)

Reported ROA declined from 16.04% in 2019 to 12.99% in 2024, signifying reduced asset profitability. The adjusted ROA exhibited a peak of 18.87% in 2020 before decreasing to 15% in 2024, a somewhat steeper decline but maintaining relatively favorable asset returns compared to the reported figures.

Overall, the financial data depicts a company experiencing gradually reducing efficiency in asset utilization and diminishing profitability metrics over the examined period. Liquidity ratios show a downward trend, suggesting potentially tighter short-term financial flexibility. The leverage indicators reflect a conservative approach to risk with relatively low debt levels, albeit with marginal increases in recent years. Profitability margins and returns on equity and assets revealed downward pressure, indicating challenges in sustaining high returns. These trends collectively suggest a cautious financial posture with declining operational performance efficiency and profitability.

Revenues

Revenues exhibit a consistent upward trend from 2019 to 2024, increasing from approximately 43.2 billion to nearly 64.9 billion US dollars. The growth is steady with notable acceleration between 2020 and 2022, where revenues increased significantly before growth somewhat stabilizes in the subsequent years.

Total Assets

Total assets have also risen consistently over the period, moving from roughly 29.8 billion in 2019 to about 55.9 billion in 2024. The increase in total assets is progressive each year, indicating expansion and accumulation of resources or investments by the company.

Reported Total Asset Turnover

The reported total asset turnover ratio shows some fluctuation and an overall declining trend from 1.45 in 2019 to 1.16 in 2024. This indicates that the efficiency in using assets to generate revenues has decreased over the years, suggesting that asset growth has outpaced revenue growth to some degree.

Adjusted Revenues

Adjusted revenues present a similar growth pattern to reported revenues, increasing from approximately 43.5 billion in 2019 to about 65.2 billion in 2024. The adjustments appear to slightly raise the revenue figures each year, maintaining the growth trajectory and reinforcing the general upward movement in revenue performance.

Adjusted Total Assets

Adjusted total assets follow a similar increasing trend as reported total assets but start at a lower base in 2019 (around 29.3 billion) and climb to approximately 51.8 billion by 2024. The adjustment reduces asset values relative to the reported figures but still shows consistent asset growth across the years.

Adjusted Total Asset Turnover

This ratio also shows a declining trend from 1.48 in 2019 to 1.26 in 2024, mirroring the reported asset turnover but at slightly higher values. This decline points to decreasing asset utilization efficiency over time even when considering adjusted figures, meaning the company’s growth in assets is outpacing revenue growth when adjustments are taken into account.

The analysis of the presented financial data reveals notable patterns and changes in both the reported and adjusted current assets, liabilities, and respective ratios over the six-year period.

Current Assets and Liabilities

Current assets have generally increased from approximately 15.45 billion US dollars in 2019 to a peak near 23.38 billion in 2023, followed by a decline to about 20.86 billion in 2024. Current liabilities similarly rose steadily from approximately 11.06 billion in 2019 to nearly 18.98 billion in 2024.

Reported Current Ratio

The reported current ratio exhibited a relatively stable trend around 1.4 in 2019 and 2020, but then fell to 1.25 in 2021 and further to 1.23 in 2022. It showed a moderate recovery to 1.3 in 2023 before declining again to 1.1 in 2024. This downward trend from 2020 to 2024 suggests a decreasing buffer of current assets to meet current liabilities under reported terms, indicating reduced short-term liquidity strength.

Adjusted Current Assets and Liabilities

Adjusted current assets closely mirrored the pattern of reported assets, increasing from about 15.5 billion in 2019 to over 23.4 billion in 2023, then decreasing to approximately 20.9 billion in 2024. Adjusted current liabilities increased from 7.87 billion in 2019 to 13.8 billion in 2024, indicating a less volatile increase compared to reported liabilities.

Adjusted Current Ratio

The adjusted current ratio was significantly higher than the reported ratio throughout the period, beginning at 1.97 in both 2019 and 2020 and declining to 1.51 in 2024. Despite the decline, this ratio remained above 1.5, which generally indicates an adequate short-term liquidity position when considering adjustments made. The ratio's downward trajectory reflects increasing liabilities or relatively slower growth in adjusted assets over time.

Overall, the data indicates expansion in asset and liability bases, with a declining trend in liquidity ratios on both reported and adjusted bases, more pronounced in the reported figures. The adjusted current ratio suggests a healthier liquidity position than reported metrics imply, possibly due to reclassification or adjustment of certain current liabilities and assets. The decline in liquidity ratios warrants attention as it may affect the ability to meet short-term obligations in the future.

The financial data reveals several noteworthy trends related to debt and equity levels over the analyzed period.

Total Debt

Total debt exhibits a significant overall increase, rising from approximately 22.7 million USD in 2019 to over 1 billion USD by 2024. After a notable rise from 2019 to 2020, the debt level remained relatively stable through 2022 before sharply increasing in 2023 and reaching its peak in 2024. This indicates a substantial increase in borrowing or liabilities in recent years.

Total Shareholders' Equity

Shareholders' equity shows a consistent upward trend throughout the period, growing steadily from about 14.4 billion USD in 2019 to nearly 28.3 billion USD in 2024. This growth suggests strong retained earnings or capital increases, contributing to a solid equity base despite the increase in debt.

Reported Debt to Equity Ratio

The reported debt to equity ratio remains very low from 2019 through 2022, essentially close to zero, before rising slightly to 0.01 in 2023 and 0.04 in 2024. This reflects the relatively small scale of reported total debt compared to equity, although there is evidence of increased leverage in the latest years.

Adjusted Total Debt

The adjusted total debt shows a declining trend from 2019, starting at about 3.86 billion USD and decreasing to around 3.15 billion USD by 2023, before an uptick to approximately 4.12 billion USD in 2024. Overall, adjusted debt appears more stable and less volatile than reported total debt.

Adjusted Total Shareholders' Equity

Adjusted shareholders’ equity increases consistently from about 14.41 billion USD in 2019 to over 31.29 billion USD in 2024, paralleling the growth seen in total shareholders' equity. This points to continued strengthening of the equity position over time on an adjusted basis.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio steadily declines from 0.27 in 2019 to 0.11 in 2023, indicating a reduction in leverage relative to equity. However, it rises slightly to 0.13 in 2024, reflecting a modest increase in adjusted debt compared to equity during the most recent period.

In summary, the data indicates a strong equity growth trend with relatively low leverage when considering adjusted figures, although reported total debt shows a sharp increase in the final years. This divergence suggests that reported debt figures may include one-time or non-operational factors. The overall financial position appears robust with increasing equity and mostly controlled leverage ratios, despite a recent rise in total debt levels.

The financial data reveals several key trends in the company's capital structure and debt management over the six-year period from 2019 to 2024.

Total debt

Total debt shows a volatile pattern with a significant increase towards the end of the period. Starting relatively low at 22,658 thousand US dollars in 2019, it more than doubles by 2020, reaching 61,872 thousand. After a slight increase in 2021, total debt declines again in 2022 but then spikes sharply to 147,903 thousand in 2023. This trend culminates in an exceptional rise to 1,024,857 thousand in 2024, indicating a substantial uptick in borrowing or financial obligations during the last observed year.

Total capital

Total capital exhibits consistent growth across the entire timeframe, increasing steadily from 14,431,666 thousand US dollars in 2019 to 29,313,503 thousand in 2024. This pattern suggests ongoing expansion or reinvestment, reflecting increasing company resources or market valuation over the years.

Reported debt to capital ratio

The reported debt to capital ratio remains negligible at zero from 2019 through 2022, then rises modestly to 0.01 in 2023 and further to 0.03 in 2024. Despite the sharp increase in total debt in 2024, this ratio remains relatively low, implying that the reported debt compared to total capital is still a minor component of the overall capital structure.

Adjusted total debt

Adjusted total debt trends differently compared to reported total debt. It starts substantially higher at 3,862,214 thousand in 2019, then gradually decreases over the next four years to 3,149,034 thousand in 2023. However, there is a moderate increase to 4,120,549 thousand in 2024, still significantly lower than the sharp total debt increase observed in the same year.

Adjusted total capital

Adjusted total capital grows steadily year over year from 18,273,270 thousand in 2019 to 35,413,721 thousand in 2024. This denotes a continuous strengthening of the company’s capital base when adjustments are accounted for, mirroring the trend observed in total capital but at consistently higher values.

Adjusted debt to capital ratio

The adjusted debt to capital ratio demonstrates a clear downward trend from 0.21 in 2019 to a low of 0.10 in 2023, indicating improved leverage and a reduced proportion of debt relative to capital. In 2024, this ratio slightly increases to 0.12, which may signal a modest rise in debt levels, but overall it remains well controlled.

Overall, the company has expanded its capital base steadily throughout the period while managing its leverage prudently, particularly when considering adjusted debt figures. The large spike in total debt in 2024 stands out as an anomaly relative to prior years, but its impact on reported debt ratios is moderated by substantial capital growth. The adjusted metrics suggest maintained financial discipline despite fluctuations in reported debt.

The annual financial data reveals significant trends in the company's asset base, equity, and leverage over the six-year period.

Total Assets

Total assets exhibited a consistent upward trajectory from approximately $29.8 billion in 2019 to $55.9 billion in 2024, reflecting substantial growth and expansion of the company's asset base over the years.

Total Shareholders’ Equity

Reported shareholders’ equity increased steadily from $14.4 billion in 2019 to $28.3 billion in 2024, indicating strengthening of the company’s capital structure. The growth in equity aligns with the asset increase, suggesting reinvestment of earnings or other equity-enhancing activities.

Reported Financial Leverage

The reported financial leverage ratio fluctuated slightly but showed a general downward trend in recent years, declining from a peak of 2.21 in 2021 to 1.98 by 2024. This suggests a gradual reduction in reliance on debt relative to equity, implying improved financial stability.

Adjusted Total Assets

Adjusted total assets followed a similar growth pattern as reported total assets, increasing from approximately $29.3 billion in 2019 to $51.8 billion in 2024. The adjusted figures are consistently lower than the reported figures but trend similarly, indicating adjustments applied do not significantly alter the growth narrative.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity showed robust growth from $14.4 billion in 2019 to $31.3 billion in 2024, mirroring the reported equity trend but with slightly higher values. This might reflect accounting adjustments that increase the net equity base.

Adjusted Financial Leverage

Adjusted financial leverage presents a clearer decreasing trend compared to reported leverage, dropping from 2.03 in 2019 to 1.66 in 2024. This consistent decline suggests strengthening equity relative to adjusted assets and implies a conservative financial approach when considering adjustments.

Overall, the data indicates steady growth in both assets and equity, with a concurrent decline in leverage ratios. This pattern reflects an expanding company that is also enhancing its financial robustness by reducing dependency on debt financing relative to equity.

Net Income Attributable to Accenture plc

The net income shows a general upward trend over the analyzed periods, increasing from approximately 4.78 billion US dollars in 2019 to approximately 7.26 billion US dollars in 2024. This indicates sustained profitability growth although there was a slight stagnation between 2022 and 2023.

Revenues

Revenues have also steadily increased from around 43.2 billion US dollars in 2019 to about 64.9 billion US dollars in 2024. The most notable acceleration occurred between 2021 and 2022, when revenues increased by over 11 billion US dollars, suggesting a period of significant business expansion or effective revenue-generating activities.

Reported Net Profit Margin

The reported net profit margin has fluctuated slightly, remaining in a relatively narrow range between 10.72% and 11.69%. The margin peaked in 2021 at 11.69% and experienced a decline in 2023 to its lowest point of 10.72%, followed by a recovery to 11.19% in 2024. These variations suggest some pressure on profitability relative to revenue, but overall, the margin has remained stable.

Adjusted Net Income

The adjusted net income exhibits a similar upward trend, growing from approximately 4.77 billion US dollars in 2019 to about 7.77 billion US dollars in 2024. The data reveals a marked increase between 2019 and 2020, followed by a steady progression with a moderate dip during 2022. The recovery in later years points to improving operational performance after adjustments.

Adjusted Revenues

Adjusted revenues mirror the trend in reported revenues, increasing from approximately 43.5 billion US dollars in 2019 to about 65.2 billion US dollars in 2024. Notably, adjusted revenues saw significant growth between 2021 and 2022, with a slight moderation in growth rate thereafter.

Adjusted Net Profit Margin

The adjusted net profit margin showed considerable variation, starting at 10.95% in 2019 and peaking at 13.85% in 2020. This margin declined substantially to 10.05% in 2022 before improving to 11.93% in 2024. These fluctuations indicate variability in adjusted profitability, possibly reflecting changes in cost structure or non-operating items impacting adjusted earnings.

Overall Insights

Overall, the company demonstrates steady growth in both net income and revenues across the years under review. Profit margins, both reported and adjusted, experienced some volatility but generally remained within a moderate range. The significant jumps in revenues and income around 2021-2022 may reflect strategic initiatives or market conditions that temporarily influenced financial performance. The recovery of margins after a downturn in 2022 suggests effective management responses or operational improvements.

Net Income Attributable to Accenture plc

The net income shows a consistent upward trend over the six-year period. Starting at approximately 4.78 billion US dollars in 2019, it increased steadily each year to reach about 7.26 billion in 2024. Notably, the growth appears more significant between 2020 and 2022, with a small plateau observed between 2022 and 2023 before rising again in 2024.

Total Shareholders’ Equity

Total shareholders’ equity also exhibits a robust increasing trend over the period. It rose from around 14.4 billion in 2019 to approximately 28.3 billion in 2024. The growth is steady and consistent, with equity nearly doubling over six years, indicating strengthening capital base and retained earnings.

Reported Return on Equity (ROE)

The reported ROE shows some variability with a decreasing trend overall. It starts at a high of 33.17% in 2019, declining moderately to 25.68% in 2024. While there is a slight increase in 2022, the general pattern is a reduction in efficiency in generating earnings from equity over the years.

Adjusted Net Income

Adjusted net income follows a similar upward direction as net income but with slightly different magnitudes. It begins at roughly 4.77 billion in 2019, peaks at about 6.79 billion in 2021, then dips in 2022 before increasing again to approximately 7.77 billion in 2024. The dip in 2022 suggests possible one-time adjustments or operational impacts that temporarily reduced adjusted earnings.

Adjusted Total Shareholders’ Equity

Adjusted total equity grows from about 14.4 billion in 2019 to nearly 31.3 billion in 2024. The increase is steady each year, reflecting ongoing accumulation of equity after adjustments. The adjusted equity consistently remains higher than the reported equity values, underscoring the effect of adjustments on reported capital.

Adjusted Return on Equity (ROE)

Adjusted ROE peaks at 34.76% in 2020, higher than reported ROE in the same year, followed by a decline through the years to 24.84% in 2024. Similar to reported ROE, the trend for adjusted ROE shows a decline from the early peak, indicating decreasing return efficiency relative to shareholders’ adjusted equity, with a notable drop after 2021 and partial recovery afterwards.

In summary, the financial data highlight strong growth in both net income and shareholders' equity, reflecting solid profitability and capital expansion. However, both reported and adjusted ROEs indicate a declining trend in profitability efficiency over time, which may warrant further investigation. The adjusted figures provide a nuanced perspective, showing fluctuations in earnings and returns likely influenced by one-time factors or accounting adjustments.

Net Income Attributable to Accenture plc

The net income exhibited a generally upward trend from 2019 to 2024, increasing from approximately 4.78 billion USD in 2019 to about 7.26 billion USD in 2024. There was a notable rise each year until 2022, after which the net income plateaued in 2023 before growing again in 2024.

Total Assets

Total assets consistently grew throughout the period under review, rising from roughly 29.79 billion USD in 2019 to around 55.93 billion USD in 2024. This steady growth reflects expansion or asset accumulation over the years.

Reported Return on Assets (ROA)

The reported ROA showed a declining trend overall. It reached a high of 16.04% in 2019 but decreased to 12.99% by 2024. Particularly after 2019, the ROA declined until 2021, slightly recovered in 2022, then declined again through to 2024.

Adjusted Net Income

Adjusted net income increased substantially from 4.77 billion USD in 2019 to 7.77 billion USD in 2024. A peak was observed in 2021 at approximately 6.79 billion USD, slightly declining in 2022, followed by strong growth in the subsequent years, surpassing previous highs in 2023 and 2024.

Adjusted Total Assets

Adjusted total assets also rose steadily from about 29.33 billion USD in 2019 to 51.81 billion USD in 2024. The growth was continuous year-over-year, indicating a consistent increase in asset value when considering adjusted figures.

Adjusted Return on Assets (ROA)

The adjusted ROA displayed more variability. Starting at 16.25% in 2019, it increased sharply to 18.87% in 2020 but then declined to 14.37% in 2022. After 2022, the adjusted ROA improved again, reaching 16.07% in 2023 before slightly decreasing to 15.00% in 2024. This fluctuation indicates periods of both improved and weakened asset efficiency based on adjusted figures.