Accenture PLC (NYSE:ACN)

Return on Assets (ROA)

The Return on Assets exhibits a rising trend starting from November 2019, reaching a peak around February 2023 at approximately 14.97%. Following this peak, a gradual decline is observed, with ROA decreasing to around 11.74% by August 2025. This suggests an initial improvement in asset efficiency and profitability, followed by a weakening in asset returns in the later periods.

Financial Leverage

Financial Leverage ratios demonstrate a slight downward trend from November 2019 through around February 2023, decreasing from about 2.19 to a low near 1.89. After this point, leverage shows a moderate increase, rising back towards approximately 2.10 by August 2025. This pattern indicates a period of deleveraging followed by a cautious return to higher leverage.

Return on Equity (ROE)

Return on Equity shows a general pattern similar to ROA. It gradually increased from the initial periods to peak levels close to 31.11% in late 2022 and early 2023. Subsequently, ROE declines steadily, reaching about 24.61% by August 2025. This trajectory implies that the company's ability to generate profits from shareholder equity improved initially, then weakened in the latest periods observed.

Overall Insights

The trends collectively indicate that the company improved operational efficiency and profitability in the medium term, as evidenced by rising ROA and ROE until early 2023. The decline in these returns afterward, alongside a moderate increase in financial leverage, may suggest challenges in maintaining profitability or changes in capital structure affecting equity returns. The results point to a cautious environment with profit pressures emerging after a period of growth.

Net Profit Margin

The net profit margin exhibited a generally stable pattern with minor fluctuations over the analyzed periods. Starting from approximately 11.52%, it showed a slight upward trend reaching a peak around 12.05%. Subsequently, the margin experienced a gradual decline and later stabilized close to the 11% mark, ending near 11.02%. This indicates moderate consistency in profitability relative to revenue, though with some signs of compression in margin in the most recent periods.

Asset Turnover

The asset turnover ratio demonstrated an initial improvement from approximately 1.2, increasing steadily to a peak near 1.32, suggesting enhanced efficiency in using assets to generate revenue. After reaching this peak, a downward trend is observed, with the ratio declining to around 1.07 by the end of the period. This suggests a gradual reduction in asset efficiency in the later periods under review.

Financial Leverage

Financial leverage showed a declining trend during the earlier periods, falling from about 2.19 to near 1.93. Following this decrease, the leverage ratio gradually rose again towards 2.1 by the conclusion of the timeline. Overall, the leverage remained within a moderate range, reflecting a relatively stable use of debt in the company's capital structure, with slight variations indicating modest changes in financial risk exposure.

Return on Equity (ROE)

Return on equity values started strong at around 30%, reflecting robust profitability from shareholders' equity. However, a gradual decline occurred over the periods, dropping to approximately 24.61% by the most recent date. Despite a slight bouncing effect in the mid-term, the trend suggests a diminishing efficiency in generating returns on equity, possibly influenced by changes in operational efficiency or capital structure.

The analysis of the quarterly financial ratios reveals several notable trends and patterns over the observed periods.

Tax Burden

The tax burden ratio remained relatively stable, fluctuating narrowly around 0.76 to 0.77 throughout the periods. This suggests consistent tax expenses in relation to pre-tax income, indicating no significant changes in tax strategy or tax rate impacts.

Interest Burden

The interest burden ratio also demonstrated stability, mostly near 0.99 to 1.00, with a slight decrease to 0.98 in the most recent periods. This indicates the company maintained consistent interest expenses relative to earnings before interest and taxes, with only a minor improvement in managing interest obligations recently.

EBIT Margin

The EBIT margin displayed mild fluctuations, ranging mostly between 14.05% and 15.87%. The margin peaked around mid-2020 but saw a gradual decline after early 2022 before slightly recovering later. Overall, the operating profitability remained solid but showed some downward pressure in the latter periods, pointing to possible margin compression or increased operating costs.

Asset Turnover

The asset turnover ratio showed a declining trend from highs of approximately 1.32 in late 2021 and early 2022 to lower levels around 1.07 by mid-2025. This signals a reduction in asset efficiency, indicating the company generated less revenue per unit of asset over time, possibly due to asset growth outpacing revenue or decreased operational efficiency.

Financial Leverage

Financial leverage demonstrated a gradual decreasing pattern from about 2.19 down to a low near 1.89 around early 2024, followed by a subsequent slight increase back to approximately 2.10 by mid-2025. The initial decline could reflect deleveraging efforts or repayment of debt, with the later rise suggesting renewed leveraging or changes in capital structure.

Return on Equity (ROE)

ROE showed a peak at just above 31% in early 2022, followed by a steady decline to around 24.6% by mid-2025. This notable decrease in returns to shareholders aligns with the declining trends observed in asset turnover and EBIT margin, reflecting less effective use of equity to generate profits. The moderated financial leverage in the same timeframe may also contribute to lower ROE levels.

Overall, while profitability margins remained relatively stable with some decrease, the decline in asset turnover and ROE suggests challenges in maintaining operational efficiency and shareholder returns. The steady tax and interest burdens indicate stable cost structures in those areas. The changes in financial leverage imply shifts in capital management strategies over the periods reviewed.

The financial performance over the observed periods reflects several notable trends in profitability, asset utilization, and returns.

Net Profit Margin

The net profit margin has generally exhibited stability with modest fluctuations. Starting from around 11.5%, it slightly increased to a peak near 12.05% before experiencing a gradual decline. Recent periods show a margin around the 11% level, indicating a slight weakening in profitability relative to revenues but maintaining a relatively consistent range overall.

Asset Turnover

Asset turnover has demonstrated a relatively steady pattern with minor variations, peaking around 1.32 in late 2022 and early 2023, which suggests an efficient use of assets in generating sales during those intervals. After the peak, there is a slow downward trend to just above 1.0, indicating a moderate decrease in the effectiveness of asset use. The ratio remains above 1.0, reflecting ongoing positive asset utilization.

Return on Assets (ROA)

The return on assets showcased a pattern correlating with net profit margin and asset turnover trends. ROA rose steadily to a high near 14.97%, marking a peak in asset profitability. Subsequently, it has declined to around 11.74% in the latest period, revealing a reduction in the overall profitability of assets. Despite the decline, the ROA remains at a healthy level consistent with stable operational performance.

In summary, the company experienced a period of improving profitability and asset efficiency culminating near 2022-2023, followed by a mild contraction in these metrics. The declines in asset turnover and net profit margin have contributed to the reduction in ROA, though the firm's ability to generate returns on assets remains robust. No drastic volatility is observed, indicating consistent financial management amid changing market conditions.

The financial data reveals several notable trends over the observed periods. The tax burden ratio has remained relatively stable, fluctuating minimally around 0.76 to 0.77. This indicates consistency in the proportion of earnings paid as tax, suggesting effective tax management or stable tax policy impacts.

The interest burden ratio shows very slight variation, predominantly close to or equal to 1. This stability suggests that interest expenses relative to earnings before interest and taxes have not significantly affected profitability, implying minimal or well-managed debt-related costs over time.

The EBIT margin percentage has exhibited moderate fluctuations but generally maintains a narrow band between approximately 14% and 15.9%. This indicates sustained operational profitability with minor short-term variations, potentially reflecting steady control over operating expenses and revenue generation capabilities.

Asset turnover shows a mild overall declining trend, beginning near 1.2 and gradually moving downward to about 1.07 by the end of the period. This suggests a decreasing efficiency in generating sales from asset investments, which may warrant further examination into asset utilization or changes in asset base composition.

Return on assets (ROA) has experienced a slight downward shift from levels near 13.8% to around 11.7%. The pattern is consistent with the observed decrease in asset turnover and slight changes in profit margins, reflecting a modest decline in the company's ability to convert assets into net income. While profitability remains positive, the gradual reduction in ROA points to potential challenges in maintaining past performance levels.

Overall, the analysis indicates a company with relatively stable tax and interest burdens, consistent but slightly variable operating profitability, and a somewhat declining trend in asset efficiency and returns on assets. These insights suggest that while profitability and cost management have remained largely stable, attention may be needed to improve asset utilization and sustain overall returns.

Tax Burden

Stable around 0.76–0.77, indicating consistent tax expense relative to earnings.

Interest Burden

Close to 1 throughout, showing minimal impact of interest expenses on earnings.

EBIT Margin

Moderately fluctuating between 14% and 15.9%, reflecting stable operating profitability.

Asset Turnover

Gradual decline from 1.2 to approximately 1.07, suggesting decreasing efficiency in asset use.

Return on Assets (ROA)

Declined from around 13.8% to 11.7%, indicating reduced overall asset profitability.

The financial ratios reveal several noteworthy trends over the observed periods.

Tax Burden

The tax burden ratio remains consistently stable, fluctuating slightly but generally maintaining a level between 0.76 and 0.77. This indicates a steady effective tax rate with minimal volatility over the periods examined.

Interest Burden

The interest burden ratio shows minimal variation, mostly hovering around 0.99 to 1.00, with a very slight decrease toward the end of the timeline, reaching approximately 0.98. This suggests that interest expenses have remained relatively constant, exerting little impact on earnings before taxes.

EBIT Margin

The EBIT margin demonstrates a gradual upward trend in the earlier periods, peaking around 15.87%, followed by a slight decline and fluctuation around the 14.0% to 15.4% range. Some recovery is observed toward the later periods, suggesting the company managed operational profitability with minor variability but maintained relatively healthy margins overall.

Net Profit Margin

The net profit margin mirrors the pattern observed in EBIT margin with an initial increase reaching just above 12%, then a moderate decline to levels near 10.65%, followed by a gradual recovery rising back toward approximately 11.6%. This pattern indicates that despite some pressure on profitability, net margins remain stable and resilient over time.

Overall, the data suggests a stable financial performance with consistent tax and interest burdens, and profitability margins showing minor fluctuations but maintaining steady levels across the reviewed periods.