Accenture PLC (NYSE:ACN)

Current Ratio

The current ratio shows a general fluctuation over the observed periods. It started at 1.4, declined to a low of 1.1 by the fourth year, indicating a slight weakening in the firm's ability to cover short-term liabilities with current assets. However, in the final year, it rebounded to 1.42, suggesting an improvement in liquidity and potentially better short-term financial stability.

Quick Ratio

The quick ratio mirrors the trend of the current ratio but at consistently lower levels, reflecting the exclusion of inventory from liquid assets. The ratio decreased from 1.29 down to 0.98 over several years, indicating a reduction in highly liquid assets relative to current liabilities. The slight recovery to 1.3 at the end suggests an enhanced position in terms of immediately available assets, although with some volatility.

Cash Ratio

The cash ratio presents a downward trend overall, starting at 0.67 and dropping to a minimum of 0.26 before rising modestly to 0.56 in the latest period. This signals that the company's cash and cash equivalents relative to current liabilities have decreased, potentially indicating tighter cash reserves. The late period increase may reflect improved cash management or cash generation capabilities.

Overall, the firm's liquidity ratios demonstrate variability over time, with some periods of decline followed by partial recoveries. The current ratio remains above 1 throughout, signifying that current assets consistently exceed current liabilities, albeit with some fluctuation. The reductions in quick and cash ratios suggest a cautious stance in relying solely on the most liquid assets to meet short-term obligations, though recent improvements may point to corrective measures taken to strengthen liquidity. This pattern highlights an ongoing balancing act between asset management and liability coverage in the short term.

Current Assets

The current assets have shown a generally upward trend over the reported periods, increasing from approximately 17.7 billion to 28.9 billion US dollars. Notably, there was a consistent growth from 2020 through 2023, followed by a temporary dip in 2024, and then a significant increase in 2025. This pattern suggests an overall expansion in the company’s short-term resource base, with a potential recovery or strategic accumulation occurring towards the latest period.

Current Liabilities

Current liabilities have also risen steadily, moving from around 12.7 billion to 20.4 billion US dollars across the timeframes observed. The progression is relatively smooth and continuous, reflecting an increasing obligation level in the short term. The rate of increase in liabilities appears somewhat consistent, indicating a growing but controlled expansion of short-term debts or obligations.

Current Ratio

The current ratio, an indicator of short-term liquidity, reveals fluctuations over time. It started at 1.4 in 2020, slightly decreased each year until 2022, reaching a low of 1.23. Then, it improved moderately by 2023 to 1.3 before dropping again to 1.1 in 2024. A notable recovery occurred in 2025 with the ratio climbing to 1.42. Overall, this trend suggests variations in liquidity management, with periods of tighter short-term liquidity conditions, followed by attempts to strengthen liquidity.

Overall Insights

The company demonstrates a trend of increasing current assets and liabilities, with assets growing at a somewhat faster pace in the final period reviewed. The fluctuation in the current ratio implies that while the company is generally maintaining a level of liquidity above 1, indicating that current assets exceed current liabilities, there are times where liquidity tightens. The significant rise in current assets paired with a recovery in the current ratio in the latest period might indicate improved liquidity management or stronger operational performance.

The financial data reveals several noteworthy patterns regarding liquidity and short-term financial health over the observed period.

Total Quick Assets

The value of total quick assets shows a generally upward trend from 2020 to 2025. Starting at approximately 16.36 billion US dollars in 2020, the amount increases steadily to over 21.27 billion by 2023. A dip occurs in 2024, dropping to about 18.67 billion, followed by a significant recovery to nearly 26.47 billion in 2025. This pattern indicates a strong capacity to convert assets quickly into cash, despite a temporary decline in 2024.

Current Liabilities

Current liabilities also increase consistently throughout the period, starting at roughly 12.66 billion US dollars in 2020 and reaching approximately 20.35 billion by 2025. The growth appears relatively steady year over year, reflecting either increased operational scale or higher short-term obligations. The liability growth outpaces quick asset growth in some years, impacting liquidity ratios.

Quick Ratio

The quick ratio, which reflects the ability to cover current liabilities with quick assets, starts at a healthy 1.29 in 2020 but declines gradually to its lowest point of 0.98 in 2024. This decline to below 1 suggests a temporary period of potential liquidity strain. However, a rebound to 1.3 by 2025 indicates an improvement in short-term financial stability, surpassing the starting point. The variations in the quick ratio correlate closely with fluctuations in quick assets and steadily rising current liabilities.

In summary, while current liabilities show a persistent increase, the company's quick assets and quick ratio demonstrate resilience with a dip and recovery cycle. The temporary weakening of liquidity in 2024 may warrant further investigation, but the recovery in 2025 suggests effective management of short-term resources.

Total cash assets

The total cash assets exhibited a generally fluctuating trend over the analyzed period. Starting at approximately 8.51 billion USD in 2020, the cash assets gradually decreased over the next two years to about 7.89 billion USD in 2022. In 2023, there was a rebound with cash assets increasing to roughly 9.05 billion USD. However, a significant decline followed in 2024, bringing cash assets down to approximately 5.01 billion USD. The most recent data for 2025 shows a sharp recovery, with cash assets reaching a new peak of about 11.48 billion USD.

Current liabilities

Current liabilities demonstrated a consistent upward trajectory throughout the reviewed timeframe. Starting from around 12.66 billion USD in 2020, liabilities steadily increased each year, reaching approximately 20.35 billion USD by 2025. This represents a notable rise of roughly 60.7% over the six-year span, indicating growing short-term obligations.

Cash ratio

The cash ratio, a liquidity measure comparing cash assets to current liabilities, showed a declining trend initially, moving from 0.67 in 2020 to a low of 0.26 in 2024. This suggests that liquidity relative to short-term liabilities weakened over this period. However, there was a partial recovery in 2025, with the ratio increasing to 0.56, which may indicate efforts to improve liquidity or a significant increase in cash holdings relative to current liabilities.