Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Accenture PLC, liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Accenture PLC current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Accenture PLC quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Accenture PLC cash ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Current Ratio
Accenture PLC, current ratio calculation, comparison to benchmarks
| Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 19,666,511 | 17,749,756 | 15,450,601 | 13,585,559 | 12,097,289 | 11,976,222 | |
| Current liabilities | 15,708,867 | 12,662,590 | 11,061,896 | 10,151,751 | 9,824,279 | 8,878,924 | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.25 | 1.40 | 1.40 | 1.34 | 1.23 | 1.35 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Adobe Inc. | 1.25 | 1.48 | 0.79 | 1.13 | 2.05 | 2.08 | |
| International Business Machines Corp. | 0.88 | 0.98 | 1.02 | 1.29 | 1.33 | — | |
| Intuit Inc. | 1.94 | 2.26 | 1.83 | 1.14 | 0.73 | 0.72 | |
| Mastercard Inc. | 1.29 | 1.61 | 1.42 | 1.39 | 1.57 | — | |
| Microsoft Corp. | 2.08 | 2.52 | 2.53 | 2.90 | 2.48 | — | |
| Oracle Corp. | 2.30 | 3.03 | 2.49 | 3.96 | 3.08 | — | |
| PayPal Holdings Inc. | 1.22 | 1.33 | 1.43 | 1.27 | 1.43 | — | |
| Salesforce Inc. | 1.23 | 1.08 | 0.95 | 0.92 | 0.83 | — | |
| ServiceNow Inc. | 1.05 | 1.21 | 1.03 | 1.17 | 1.15 | — | |
| Visa Inc. | 1.75 | 1.91 | 1.56 | 1.61 | 1.90 | 1.78 | |
| Current Ratio, Sector | |||||||
| Software & Services | 1.60 | 1.81 | 1.76 | 2.04 | 1.97 | — | |
| Current Ratio, Industry | |||||||
| Information Technology | 1.60 | 1.79 | 1.72 | 1.81 | 1.99 | — | |
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 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 19,666,511 ÷ 15,708,867 = 1.25
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Accenture PLC current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Quick Ratio
Accenture PLC, quick ratio calculation, comparison to benchmarks
| Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 8,168,174 | 8,415,330 | 6,126,853 | 5,061,360 | 4,126,860 | 4,905,609 | |
| Short-term investments | 4,294 | 94,309 | 3,313 | 3,192 | 3,011 | 2,875 | |
| Receivables, net of allowance | 8,796,992 | 7,192,110 | 7,467,338 | 4,996,454 | 4,569,214 | 4,072,180 | |
| Contract assets, current | 931,220 | 654,782 | 627,733 | 2,499,914 | 2,316,043 | 2,150,219 | |
| Total quick assets | 17,900,680 | 16,356,531 | 14,225,237 | 12,560,920 | 11,015,128 | 11,130,883 | |
| Current liabilities | 15,708,867 | 12,662,590 | 11,061,896 | 10,151,751 | 9,824,279 | 8,878,924 | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.14 | 1.29 | 1.29 | 1.24 | 1.12 | 1.25 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Adobe Inc. | 1.11 | 1.34 | 0.70 | 1.06 | 2.00 | 1.99 | |
| International Business Machines Corp. | 0.67 | 0.83 | 0.87 | 1.12 | 1.19 | — | |
| Intuit Inc. | 1.60 | 2.04 | 1.44 | 0.86 | 0.45 | 0.53 | |
| Mastercard Inc. | 1.12 | 1.45 | 1.27 | 1.27 | 1.45 | — | |
| Microsoft Corp. | 1.90 | 2.33 | 2.35 | 2.74 | 2.37 | — | |
| Oracle Corp. | 2.15 | 2.83 | 2.31 | 3.78 | 2.95 | — | |
| PayPal Holdings Inc. | 1.19 | 1.30 | 1.40 | 1.24 | 1.40 | — | |
| Salesforce Inc. | 1.11 | 0.95 | 0.82 | 0.83 | 0.74 | — | |
| ServiceNow Inc. | 0.95 | 1.10 | 0.92 | 1.03 | 1.05 | — | |
| Visa Inc. | 1.61 | 1.77 | 1.45 | 1.53 | 1.81 | 1.67 | |
| Quick Ratio, Sector | |||||||
| Software & Services | 1.46 | 1.67 | 1.62 | 1.91 | 1.86 | — | |
| Quick Ratio, Industry | |||||||
| Information Technology | 1.37 | 1.57 | 1.52 | 1.61 | 1.79 | — | |
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 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 17,900,680 ÷ 15,708,867 = 1.14
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Accenture PLC quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Cash Ratio
Accenture PLC, cash ratio calculation, comparison to benchmarks
| Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 8,168,174 | 8,415,330 | 6,126,853 | 5,061,360 | 4,126,860 | 4,905,609 | |
| Short-term investments | 4,294 | 94,309 | 3,313 | 3,192 | 3,011 | 2,875 | |
| Total cash assets | 8,172,468 | 8,509,639 | 6,130,166 | 5,064,552 | 4,129,871 | 4,908,484 | |
| Current liabilities | 15,708,867 | 12,662,590 | 11,061,896 | 10,151,751 | 9,824,279 | 8,878,924 | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.52 | 0.67 | 0.55 | 0.50 | 0.42 | 0.55 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Adobe Inc. | 0.84 | 1.09 | 0.51 | 0.75 | 1.65 | 1.69 | |
| International Business Machines Corp. | 0.22 | 0.36 | 0.24 | 0.32 | 0.34 | — | |
| Intuit Inc. | 1.46 | 2.00 | 1.39 | 0.81 | 0.40 | 0.48 | |
| Mastercard Inc. | 0.79 | 1.09 | 0.81 | 0.86 | 1.07 | — | |
| Microsoft Corp. | 1.47 | 1.89 | 1.93 | 2.29 | 2.06 | — | |
| Oracle Corp. | 1.93 | 2.50 | 2.03 | 3.50 | 2.73 | — | |
| PayPal Holdings Inc. | 1.06 | 1.21 | 1.24 | 1.13 | 1.05 | — | |
| Salesforce Inc. | 0.67 | 0.54 | 0.39 | 0.45 | 0.30 | — | |
| ServiceNow Inc. | 0.67 | 0.83 | 0.61 | 0.74 | 0.85 | — | |
| Visa Inc. | 1.38 | 1.57 | 1.11 | 1.28 | 1.56 | 1.36 | |
| Cash Ratio, Sector | |||||||
| Software & Services | 1.11 | 1.32 | 1.21 | 1.46 | 1.43 | — | |
| Cash Ratio, Industry | |||||||
| Information Technology | 0.98 | 1.20 | 1.10 | 1.16 | 1.38 | — | |
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 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,172,468 ÷ 15,708,867 = 0.52
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Accenture PLC cash ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |