Accenture PLC (NYSE:ACN)

Current Ratio

The current ratio exhibits moderate fluctuations over the analyzed periods, generally oscillating within a range from approximately 1.1 to 1.5. Initially, the ratio declines from 1.45 to a low point near 1.10 in early 2024, indicating a slight reduction in short-term liquidity relative to current liabilities. Following this dip, an upward trend is observed beginning mid-2024, reaching values near 1.48 before slightly tapering off toward 1.41 by late 2025. This pattern suggests varying levels of current asset coverage over liabilities, with a notable recovery in liquidity after early 2024.

Quick Ratio

The quick ratio follows a trend similar to the current ratio but maintains a consistently lower level, reflecting a narrower focus on most liquid assets. Starting near 1.34, it decreases gradually to around 0.98 during early 2024, indicative of reduced immediate liquidity excluding inventory. From mid-2024 onward, the quick ratio rises again, peaking around 1.33, before slightly dipping toward 1.29 at the end of the period. This movement points to an improvement in the company's ability to cover short-term obligations with liquid assets after a phase of tightening liquidity.

Cash Ratio

The cash ratio displays greater volatility relative to the current and quick ratios and stays below 0.7 throughout the time frame, indicating a more conservative measure of liquidity focusing solely on cash and cash equivalents. The ratio declines from 0.68 to a minimum of 0.26 around early 2024, revealing a reduction in highly liquid assets available to cover current liabilities. Subsequently, the cash ratio recovers significantly, approaching values near 0.56 in late 2025. This recovery trend reflects an increased cash buffer in the more recent periods, albeit still at moderate levels compared to other liquidity measures.

Current Assets

The current assets exhibit an overall increasing trend over the observed periods, with some fluctuations. Starting from approximately $18.6 billion, the value grows steadily, peaking near $29 billion towards the end of the timeline. There is a notable upward movement from early 2023 through the end of 2025, indicating improved liquidity and resource availability.

Current Liabilities

Current liabilities demonstrate a general upward progression, rising from around $12.8 billion initially to nearly $20 billion by the close of the examined timeframe. Despite some variability, the upward trend is consistent, reflecting increased short-term obligations over time. The liabilities experience a notable increase especially after early 2023, paralleling the growth in current assets.

Current Ratio

The current ratio shows moderate fluctuation but remains relatively stable within a range of approximately 1.1 to 1.5. Initially, the ratio was around 1.45, followed by a decline to near 1.1 between mid-2023 and mid-2024, before rebounding sharply to approach 1.48 towards late 2025. The ratio values suggest that liquidity generally remains sufficient to cover short-term liabilities, though the dip indicates a temporary weakening of liquidity during the middle periods.

Overall Analysis

The combined analysis of the key liquidity measures indicates that the company maintains a sound short-term financial position throughout the periods. Current assets and liabilities both increase substantially, but current assets consistently remain higher, supporting positive current ratios. The temporary dip in the current ratio suggests a phase of tightening liquidity, but the subsequent recovery implies effective management or improvement in asset levels to address obligations. The sustained upward trends in asset and liability values may reflect business expansion or evolving operational scale.

The analysis of the financial trends over the observed periods reveals several key dynamics in the liquidity position of the company.

Total Quick Assets

The total quick assets in thousands of US dollars display moderate fluctuations across the quarters. Starting at approximately 17.2 billion at the end of November 2020, there is a notable increase reaching over 21.2 billion by mid-2023. After a decline towards early 2024, the value rises substantially again, peaking around 26.5 billion in August 2025 before a slight decrease at the end of the analysis period. This pattern suggests periods of accumulation of liquid assets followed by strategic deployment or other financial adjustments.

Current Liabilities

Current liabilities also show a generally increasing trend with fluctuations similar in magnitude to total quick assets. They begin around 12.8 billion in late 2020, increasing steadily to around 18 billion by late 2023. After a dip noted in early 2024, liabilities rise again, peaking at just above 20.3 billion in November 2025 before a minor decrease at the period end. This indicates an overall rising obligation level which corresponds roughly with the increase in quick assets, suggesting balanced management of liabilities and liquid assets.

Quick Ratio

The quick ratio, reflecting the company's ability to cover current liabilities with its quick assets, fluctuates mostly around the range of 1.1 to 1.3. Starting at 1.34 in November 2020, the ratio declines to just below 1.0 by mid-2024, indicating a tighter liquidity position. Post mid-2024, the quick ratio rebounds to values above 1.3, maintaining a relatively stronger liquidity buffer through the last examined periods. This trend implies intermittent pressure on liquidity but a general preservation of the ability to meet short-term obligations without relying on inventory.

Overall, the data portrays a company maintaining a generally stable quick ratio above 1.0 throughout most of the periods, despite some periods of reduced liquidity. The growth in both quick assets and current liabilities suggests active liquidity management, accommodating expansions or operational needs while safeguarding short-term solvency. The variability in quick ratio underlines the importance of periodic liquidity assessments to ensure financial flexibility.

The total cash assets display notable fluctuations across the observed periods. Initially, there is an upward trend from late 2020 through mid-2021, reaching a peak in May 2021. This is followed by a decline until early 2022, after which the cash assets begin a recovery phase, characterized by several short-term increases and decreases. A significant spike occurs in late 2025, indicating a marked improvement in cash holdings towards the end of the period.

Current liabilities exhibit a generally increasing trajectory over the same timeframe. Starting at a lower point in late 2020, these liabilities steadily rise, with some minor short-term dips. The overall movement suggests growing obligations, peaking multiple times with the highest values observed at the end of the data series in late 2025.

The cash ratio, which measures liquidity by comparing cash assets to current liabilities, reflects the interplay of these two components. The ratio starts moderately high, with values above 0.6 in late 2020 and early 2021, but experiences a decline through much of 2021 and 2022, dropping to lows around 0.26-0.32 in the first half of 2024. Following this period, the ratio recovers somewhat, climbing back above 0.5 by mid-2025 before dipping slightly again.

Summary of Financial Trends

The financial data evidences a pattern of initial growth in cash assets, followed by a period of contraction and subsequent recovery. Current liabilities show a consistent increase, which may exert pressure on liquidity.

The cash ratio trend suggests variability in liquidity, with a concerning dip in the middle periods indicating reduced short-term financial flexibility, but a recovery in the latter periods suggests improvements in managing cash relative to liabilities.

The simultaneous rise in both cash assets and current liabilities towards the end of the series points to an enhanced capacity to cover short-term obligations despite increasing liabilities, as indicated by the cash ratio's partial recovery.