Accenture PLC (NYSE:ACN)

The financial data reveals several noteworthy trends in the company's operational efficiency, liquidity, leverage, and profitability over the examined periods.

Asset Turnover

Both reported and adjusted total asset turnover ratios experienced fluctuations, with a general pattern of increase up to the 2022 period, peaking at 1.3 (reported) and 1.43 (adjusted), followed by a gradual decline through 2025. This suggests a period of improving asset utilization efficiency, before a modest reduction in turnover effectiveness in recent years.

Liquidity Ratios

The reported current ratio displayed a fluctuating trend, decreasing from 1.4 in 2020 to 1.1 by 2024, then rising sharply to 1.42 in 2025, indicating variable short-term liquidity management. Adjusted current ratios, consistently higher than the reported figures, followed a similar pattern but with greater amplitude, implying stronger liquidity when adjustments are considered. This reflects careful management of current assets and liabilities with some volatility.

Leverage Metrics

Reported debt to equity and debt to capital ratios were negligible until 2023, after which they increased notably, reaching 0.17 and 0.14 respectively by 2025. The adjusted counterparts show a decreasing trend from 2020 through 2023 but then increased again by 2025, though remaining moderate. Financial leverage ratios decreased slightly over time in both reported and adjusted forms, suggesting cautious use of debt financing with a slight rebound towards the latter years.

Profitability Margins

Reported net profit margins showed minor variation but remained relatively stable around 11% to 11.7%. Adjusted net profit margins exhibited more variation, dropping significantly in 2022 to 10.05% before recovering to 13.03% in 2025. This indicates an underlying resilience in adjusted profitability despite some fluctuations likely related to operating adjustments.

Returns

Return on equity (ROE) in reported terms peaked at 31.11% in 2022 but declined steadily thereafter to 24.61% by 2025. Adjusted ROE showed a stronger decline after 2020, stabilizing around 25% in later years. Return on assets (ROA) demonstrated a similar pattern, with reported ROA peaking in 2022 and tapering off subsequently, while adjusted ROA was highest early on with a moderate decline and stabilization above 14% by 2025. These trends suggest diminishing but still solid returns on investment, with adjustments smoothing the variations.

Overall, the data suggests that the company maintained robust operational efficiency and profitability throughout the period, despite some challenges in asset turnover and fluctuating liquidity. The gradual increase in leverage metrics towards the end may indicate a strategic shift towards more debt financing. Profitability metrics indicate continued strength, although returns on equity and assets have softened somewhat in recent years.

Revenue Trends

The company’s revenues demonstrate consistent growth over the analyzed period. Revenues increased from approximately $44.3 billion in 2020 to nearly $69.7 billion in 2025. The growth is steady, with notable acceleration between 2021 and 2022, followed by more moderate increases in subsequent years. This indicates a positive sales trajectory and expanding business operations.

Total Assets Development

Total assets have also shown a steady upward trend, rising from about $37.1 billion in 2020 to almost $65.4 billion in 2025. This reflects continued investment in assets or asset accumulation, supporting the company’s growth strategy. The annual increments suggest ongoing capital allocation towards expanding the asset base.

Reported Total Asset Turnover

The reported total asset turnover ratio fluctuates within a relatively narrow range between 1.07 and 1.3. It peaked around 2022 at 1.3 but has gradually declined towards 1.07 by 2025. The declining trend in asset turnover ratio in recent years may suggest that asset growth is slightly outpacing revenue growth, or the efficiency in using assets to generate revenue is decreasing marginally.

Adjusted Revenues and Assets

Adjusted revenues closely follow the reported revenues, starting from approximately $44.9 billion in 2020 and reaching around $70.6 billion in 2025. Adjusted total assets are consistently lower than reported total assets but also show an upward trajectory, rising from approximately $32.9 billion in 2020 to $61.6 billion in 2025. This adjusted view might exclude certain asset categories, providing a refined perspective on operational assets involved in revenue generation.

Adjusted Total Asset Turnover

Adjusted total asset turnover is higher than the reported ratio across all years, starting at 1.36 in 2020, peaking at 1.43 in 2022, and then declining to 1.14 by 2025. This indicates improved efficiency in asset utilization when considering adjusted figures, although the general downward trend since 2022 aligns with the pattern observed in reported asset turnover. The peak in 2022 suggests a period of optimal asset use efficiency, followed by a gradual reduction.

Summary of Insights

Overall, the company shows strong growth in both revenues and asset base, reflecting expansion and investment. Asset turnover ratios suggest a peak in operational efficiency around 2022, with a mild decrease in subsequent years, indicating potential challenges in maintaining asset usage efficiency relative to growth. Adjusted figures reinforce these conclusions, highlighting that while asset utilization is currently still robust, there may be increasing pressure to optimize asset deployment to sustain revenue growth momentum.

Current Assets

Current assets demonstrated a generally increasing trend from 2020 through 2023, rising from approximately 17.75 billion to nearly 23.38 billion US dollars. However, a decline is noted in 2024, with values dropping to about 20.86 billion, followed by a substantial increase in 2025 reaching nearly 28.9 billion.

Current Liabilities

Current liabilities consistently increased over the entire period, starting at roughly 12.66 billion US dollars in 2020 and growing steadily each year to reach approximately 20.35 billion by 2025. No declines were observed in this category.

Reported Current Ratio

The reported current ratio exhibited some fluctuations. It decreased from 1.4 in 2020 to 1.23 in 2022, indicating a slight reduction in short-term liquidity. A recovery occurred in 2023 with a rise to 1.3, followed by a drop to 1.1 in 2024, suggesting a weaker liquidity position. By 2025, the ratio improved markedly to 1.42, exceeding the initial 2020 level.

Adjusted Current Assets

Adjusted current assets closely followed the pattern of reported current assets, displaying steady growth through 2023, a decrease in 2024, and a sharp rise in 2025. The adjusted figures tend to be marginally higher than the reported assets each year, indicating certain asset adjustments increasing the asset base.

Adjusted Current Liabilities

Adjusted current liabilities showed a consistent upward trajectory but at a reduced pace compared to reported current liabilities. Starting at about 9.03 billion US dollars in 2020, these liabilities grew steadily to approximately 14.28 billion by 2025.

Adjusted Current Ratio

The adjusted current ratio demonstrated a stronger liquidity position than the reported ratio throughout the period. Although it declined from 1.97 in 2020 to a low of 1.51 in 2024, the ratio remained above 1.5, indicating adequate short-term financial health. By 2025, the adjusted ratio rose significantly to 2.03, reflecting an improved capacity to cover short-term obligations.

Summary

Overall, the company’s current assets and liabilities have increased notably over the reviewed period with liabilities expanding at a steadier rate. The reported liquidity ratios reveal variability and periods of potential stress, especially in 2024 when the current ratio fell to near 1.1. However, the adjusted ratios suggest a more robust liquidity profile, with improved coverage in 2025. The decoupling between reported and adjusted figures highlights the importance of considering asset and liability adjustments when assessing short-term financial strength. The upward movement in adjusted current ratio in the most recent period is a positive indicator of enhanced liquidity management and financial resilience.

The financial data reveals several notable trends in the leverage and equity structure over the examined periods.

Total Debt

Total debt exhibited a fluctuating trajectory, starting at a moderate level and decreasing slightly in the early years. However, a marked increase occurred beginning in the 2022-2023 period, escalating dramatically by 2025 to several multiples of the initial values. This indicates a significant increase in borrowing or liabilities in recent years.

Total Shareholders’ Equity

Shareholders’ equity demonstrated consistent growth throughout the period, with a steady upward trend each year. This reflects an accumulation of retained earnings or capital infusion contributing to the strengthening of the company’s financial foundation.

Reported Debt to Equity Ratio

The reported debt to equity ratio remained negligible and close to zero for the initial years, reflecting minimal leverage when considering traditional metrics. It began to rise slightly starting from the 2022-2023 period, reaching its highest point in 2025, which signals increased reliance on debt relative to equity as a financing source.

Adjusted Total Debt

Adjusted total debt figures, which likely incorporate off-balance sheet or additional liabilities, started substantially higher than reported total debt. After a small decrease over a few years, adjusted debt increased again starting in 2023 and surged substantially by 2025. This trend indicates growing overall indebtedness when all obligations are accounted for.

Adjusted Total Shareholders’ Equity

Adjusted equity similarly grew over time, consistently maintaining an upward trajectory. The growth rate in adjusted equity appears more pronounced than that of reported equity, suggesting adjustments accounting for certain equity components or reserves.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio started at a moderate level and gradually decreased over the first three years, suggesting an improving capital structure and a reduced proportion of debt relative to equity. From 2023 onwards, this ratio reversed course and increased noticeably, culminating in a significant rise by 2025. This pattern is consistent with the increased adjusted total debt and suggests growing financial leverage in the latter years.

Overall, the data indicates that the entity experienced a strong growth in equity throughout all years, reflecting robust earnings retention or capital increases. Initially, leverage was relatively low and even decreasing when considering adjusted figures, signaling a conservative financing approach. However, starting from the 2023 financial year, there is a clear trend of intensified debt accumulation, both reported and adjusted, resulting in heightened debt-to-equity ratios. This may reflect strategic borrowing for expansion or other investments but also implies increased financial risk going forward.

The financial data indicates several key trends regarding the company's debt and capital structure over the examined period.

Total Debt and Capital

Total debt increased substantially over the years, with a notable surge beginning in the fiscal year ending August 31, 2023. From a relatively modest level of approximately 61.9 million USD in 2020, total debt escalated dramatically to over 5.14 billion USD by 2025. This sharp rise contrasts with the steadier, more gradual increase in total capital, which grew from around 17.1 billion USD in 2020 to 36.3 billion USD in 2025.

Debt to Capital Ratios (Reported)

The reported debt to capital ratio remained negligible from 2020 through 2022, hovering near zero, before increasing slightly to 0.01 in 2023, 0.03 in 2024, and then experiencing a more pronounced rise to 0.14 in 2025. This pattern reflects the delayed effect of increasing total debt relative to capital, with the ratio still relatively low compared to the adjusted figures.

Adjusted Debt and Capital

Adjusted total debt figures are significantly higher than reported total debt, starting at approximately 3.5 billion USD in 2020 and showing a somewhat volatile but generally increasing trend, peaking at about 8.2 billion USD in 2025. Adjusted total capital also rose consistently, from approximately 21.4 billion USD in 2020 to 43.9 billion USD in 2025.

Adjusted Debt to Capital Ratios

The adjusted debt to capital ratio displayed a downward trend initially, moving from 0.16 in 2020 down to 0.10 in 2023, suggesting improved leverage or capital structure during this period. However, from 2023 onwards, the ratio reversed course, climbing to 0.12 in 2024 and then rising further to 0.19 in 2025. This indicates a growing reliance on debt financing relative to total adjusted capital in the most recent years.

Overall Insights

The data reveals that while both total and adjusted capital have grown steadily over the period, debt levels have escalated significantly, particularly post-2022. The initial reduction in adjusted debt-to-capital ratio suggests efforts to manage or reduce leverage earlier but these efforts appear to have been reversed recently, with leverage increasing notably by 2025. The discrepancy between reported and adjusted debt likely reflects accounting treatments or adjustments that materially affect the portrayal of the company's leverage position. The pronounced increase in debt, alongside rising debt-to-capital ratios in recent years, may warrant closer scrutiny regarding debt servicing capacity and financial risk.

The analysis of the financial data over the six-year period reveals several notable trends in the company's financial position.

Total Assets

Total assets have shown a consistent upward trajectory, increasing steadily from approximately 37.1 billion US dollars in 2020 to nearly 65.4 billion US dollars in 2025. This growth indicates an expansion in the company’s resource base, potentially reflecting investments in operations, acquisitions, or asset appreciation.

Total Shareholders’ Equity

Shareholders’ equity has also experienced continuous growth, rising from about 17 billion US dollars in 2020 to almost 31.2 billion US dollars by 2025. This increase suggests retained earnings accumulation or additional equity financing, contributing to a stronger capitalization over time.

Reported Financial Leverage

The reported financial leverage ratio has remained relatively stable but shows a slight decrease from 2.18 in 2020 to around 1.98 in 2024, with a small uptick to 2.10 in 2025. This indicates a modest reduction in the extent to which the company is using debt relative to its equity, potentially reflecting a cautious approach toward financial risk, although the slight increase in the final year merits attention.

Adjusted Total Assets

Adjusted total assets, which may account for valuation changes or other modifications, follow a pattern similar to reported total assets, increasing from about 32.9 billion US dollars in 2020 to 61.6 billion US dollars in 2025. The adjusted values are consistently lower than the reported amounts but maintain the same growth momentum, underscoring the company’s expanding asset base.

Adjusted Total Shareholders’ Equity

The adjusted shareholders’ equity figure rises from approximately 17.9 billion US dollars in 2020 to nearly 35.7 billion US dollars in 2025, consistently staying higher than the reported equity values. This suggests valuation adjustments that positively affect equity, reflecting possibly more conservative asset valuations or deferred equity adjustments.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreases steadily from 1.84 in 2020 to 1.66 in 2024 before increasing slightly to 1.73 in 2025. The gradual decline over the period indicates a reduction in relative debt levels when adjusted for valuation or other factors, implying improved financial strength and risk management, although the slight increase at the end should be monitored.

Overall, the data indicates strong asset and equity growth accompanied by a generally prudent leverage profile. The company appears to be expanding its asset base and strengthening its equity while maintaining a stable leverage ratio, which suggests effective capital management aligned with growth objectives. The small increases in leverage ratios near the end of the period may warrant closer scrutiny for future trends in financial risk.

Revenue Trends

Revenues exhibited a consistent upward trajectory over the analyzed periods, increasing from approximately $44.3 billion in 2020 to an estimated $69.7 billion in 2025. This growth reflects a steady expansion of the company's top line, with notable acceleration particularly between 2021 and 2022, and a steady rise continuing through 2025.

Net Income Developments

Net income attributable to the company increased from around $5.1 billion in 2020 to approximately $7.7 billion in 2025. This upward trend, while generally steady, shows a stabilization in 2022 and 2023 before resuming growth through 2025. The growth in net income corresponds proportionately with revenue gains, indicating maintained profitability.

Reported Net Profit Margin Analysis

The reported net profit margin fluctuated modestly during the period, moving from 11.52% in 2020 to a slightly lower 11.02% in 2025. Margins peaked at 11.69% in 2021 before experiencing a slight decline through 2023. This suggests some pressure on profitability relative to revenues, although margins remain relatively stable above 10%.

Adjusted Financial Metrics

Adjusted revenues follow a pattern similar to reported revenues, increasing from approximately $44.9 billion in 2020 to $70.6 billion in 2025. Adjusted net income, however, shows more variability, initially increasing until 2021, then declining notably in 2022, followed by a recovery and substantial increase reaching nearly $9.2 billion in 2025.

Adjusted Net Profit Margin Trends

Adjusted net profit margins decreased quite sharply in 2022 down to 10.05%, before rebounding significantly to reach 13.03% by 2025. This pattern indicates that adjustments—possibly related to one-time items or operational expenditures—had a marked impact in 2022, but the company managed to enhance operational profitability in subsequent years.

Overall Financial Health and Profitability Insights

The company demonstrates solid revenue growth and increasing net income over the period, despite some variability in profit margins. The divergence between reported and adjusted net income and margins highlights the impact of non-recurring or excluded items on profitability measures. The robust recovery and improvement in adjusted net profit margins in the later years suggest effective management of costs and operational efficiencies, contributing to improved earnings quality.

The financial analysis reveals several notable trends concerning the profitability and equity position over the analyzed period.

Net Income and Adjusted Net Income

The net income attributable shows a consistent upward trajectory from 5,107,839 thousand USD in 2020 to 7,678,433 thousand USD projected in 2025. Similarly, adjusted net income fluctuates but generally increases from 6,219,842 thousand USD in 2020 to 9,195,776 thousand USD in 2025, indicating growth in earnings quality and profitability on an adjusted basis.

Total and Adjusted Shareholders’ Equity

Both reported and adjusted shareholders’ equity demonstrate steady growth through the years, with total equity rising from 17,000,536 thousand USD in 2020 to an anticipated 31,195,446 thousand USD in 2025, while adjusted equity increases from 17,893,679 thousand USD to 35,669,461 thousand USD in the same period. This indicates strengthening financial foundation and capital base enhancement over time.

Return on Equity (ROE) Metrics

Reported ROE peaks around 31.11% in 2022 but then trends downward to approximately 24.61% by 2025, signaling decreasing efficiency in generating net income from shareholders’ equity. Adjusted ROE exhibits a more pronounced decline from 34.76% in 2020 to 25.78% in 2025, with a notable drop between 2021 and 2022, followed by relative stabilization and slight improvement towards the end of the period.

In summary, while equity and income levels are rising, the returns generated on equity—both reported and adjusted—have decreased over the period analyzed. This suggests that although the company expands its capital base and earnings in absolute terms, the efficiency and profitability relative to shareholder investment have moderated, which warrants further investigation into underlying factors such as capital deployment and cost management.

The financial data over the six-year period reveals several noteworthy trends and insights, reflecting the company’s profitability, asset base, and returns on assets both in reported and adjusted terms.

Net Income Attributable to the Company

Net income shows a consistent upward trajectory from 5,107,839 thousand US dollars in 2020 to 7,678,433 thousand US dollars in 2025. This represents a steady improvement in profitability, with particularly strong growth observed between 2021 and 2022, and again through 2024 to 2025.

Total Assets

The total assets have expansively increased over the period, rising from approximately 37.1 billion US dollars in 2020 to nearly 65.4 billion US dollars in 2025. This steady asset growth indicates ongoing investment and expansion, with acceleration noticeable especially in the final year analyzed.

Reported Return on Assets (ROA)

The reported ROA exhibits a general declining trend, starting at 13.78% in 2020 and gradually decreasing to 11.74% by 2025. Despite the increase in net income and total assets, this declining ROA suggests that asset growth has outpaced net income improvements, indicating potential diminishing efficiency in asset utilization.

Adjusted Net Income

Adjusted net income fluctuates over the period, initially rising from 6,219,842 thousand US dollars in 2020 to a peak of 6,789,563 thousand in 2021, then dipping to 6,219,535 thousand in 2022 before increasing substantially to 9,195,776 thousand in 2025. This variability may reflect adjustments for non-recurring items or other factors affecting earnings quality.

Adjusted Total Assets

The adjusted total assets show a likewise increasing pattern, advancing from approximately 32.97 billion US dollars in 2020 to 61.64 billion US dollars in 2025. The rise is consistent and substantial, mirroring trends observed in the reported total assets.

Adjusted Return on Assets (Adjusted ROA)

The adjusted ROA declines from 18.87% in 2020 to 14.37% in 2022, then shows a partial recovery to 16.07% in 2023 before gradually decreasing again to 14.92% in 2025. This trend suggests some volatility in operational efficiency when considering adjustments, yet the adjusted ROA remains higher than the reported ROA throughout the period.

In summary, the company demonstrates strong growth in net income and asset base over the six years. However, the gradual decline in reported and adjusted ROA indicates that the company may be experiencing decreasing efficiency in converting assets into profits. Fluctuations in adjusted net income and adjusted ROA point to the impact of extraordinary items or non-recurring adjustments during certain periods. Overall, while revenue-generating capacity strengthens, ongoing attention to asset utilization efficiency is advisable.