Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Accenture PLC, long-term (investment) activity ratios
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a generally increasing trend over the years. Starting at 31.06 in 2019, there is a slight decline in 2020 to 28.68, followed by a recovery and ongoing rise through 2021 to 2024, reaching a peak of 42.66 in 2024. This suggests improved efficiency in the use of fixed assets to generate sales over the analyzed period.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This ratio exhibits a significant drop from 31.06 in 2019 to 9.37 in 2020, which may reflect accounting changes or increased inclusion of right-of-use assets due to lease capitalization. After 2020, the ratio gradually recovers but remains much lower than the net fixed asset turnover alone, reaching 15.17 in 2024. This pattern indicates an adjustment period associated with the recognition of leased assets, impacting the turnover ratio.
- Total Asset Turnover
- Total asset turnover decreases from 1.45 in 2019 to a low of 1.17 in 2021, suggesting a decline in asset utilization efficiency initially. It slightly improves in 2022 to 1.30, but then declines again in subsequent years, ending at 1.16 in 2024. Overall, this indicates a modest weakening in the capacity to generate sales from total assets over the period.
- Equity Turnover
- Equity turnover follows a downward trend from 3.00 in 2019 to 2.29 in 2024. After a moderate decrease in 2020 and 2021, there is a temporary increase in 2022 to 2.79, but the ratio declines again afterward. The steady reduction implies a gradual decrease in the rate at which equity is being turned into revenue, possibly reflecting changes in equity base or sales generation efficiency.
Net Fixed Asset Turnover
Accenture PLC, net fixed asset turnover calculation, comparison to benchmarks
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Revenues | 64,896,464) | 64,111,745) | 61,594,305) | 50,533,389) | 44,327,039) | 43,215,013) | |
| Property and equipment, net | 1,521,119) | 1,530,007) | 1,659,140) | 1,639,105) | 1,545,568) | 1,391,166) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 42.66 | 41.90 | 37.12 | 30.83 | 28.68 | 31.06 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Adobe Inc. | 11.11 | 9.56 | 9.23 | 9.44 | 8.48 | 8.64 | |
| Cadence Design Systems Inc. | 10.13 | 10.14 | 9.59 | 9.77 | 8.62 | — | |
| CrowdStrike Holdings Inc. | 4.93 | 4.55 | 5.57 | 5.24 | 3.54 | — | |
| Fair Isaac Corp. | 44.65 | 138.02 | 78.34 | 47.17 | 27.89 | 21.88 | |
| International Business Machines Corp. | 10.95 | 11.25 | 11.35 | 10.07 | 7.33 | — | |
| Intuit Inc. | 16.14 | 14.83 | 14.33 | 12.35 | 10.46 | 8.70 | |
| Microsoft Corp. | 1.81 | 2.22 | 2.66 | 2.81 | 3.24 | 3.45 | |
| Oracle Corp. | 2.46 | 2.93 | 4.37 | 5.74 | 6.26 | — | |
| Palantir Technologies Inc. | 72.29 | 46.59 | 27.55 | 49.26 | 36.99 | — | |
| Palo Alto Networks Inc. | 22.23 | 19.44 | 15.38 | 13.37 | 9.79 | 9.80 | |
| Salesforce Inc. | 9.45 | 8.47 | 9.41 | 8.64 | 7.20 | — | |
| ServiceNow Inc. | 6.23 | 6.61 | 6.88 | 7.70 | 6.85 | — | |
| Synopsys Inc. | 10.88 | 10.48 | 10.51 | 8.90 | 7.62 | 7.82 | |
| Workday Inc. | 5.88 | 5.17 | 4.58 | 4.44 | 3.87 | — | |
| Net Fixed Asset Turnover, Sector | |||||||
| Software & Services | 3.08 | 3.75 | 4.49 | 4.73 | 5.15 | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Information Technology | 3.47 | 3.78 | 4.44 | 4.74 | 4.57 | — | |
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
1 2024 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= 64,896,464 ÷ 1,521,119 = 42.66
2 Click competitor name to see calculations.
- Revenues
- Revenues exhibited a consistent upward trajectory over the observed periods. Starting at approximately 43.2 billion USD in 2019, revenues increased steadily each year, with notable acceleration in growth from 2020 to 2022. The revenue rose from 44.3 billion USD in 2020 to 61.6 billion USD in 2022, representing a substantial gain within two years. This positive trend continued, albeit at a slower pace, reaching about 64.9 billion USD in 2024.
- Property and Equipment, Net
- The net value of property and equipment showed an initial growth from 1.39 billion USD in 2019 to a peak of approximately 1.66 billion USD in 2022. However, after this peak, a gradual decline was observed, with the value dropping to around 1.52 billion USD by 2024. This suggests some level of asset disposal or depreciation outpacing investments in fixed assets during the latter years.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio indicated a general improving efficiency in asset utilization. Beginning at 31.06 in 2019, the ratio declined slightly in 2020 to 28.68, potentially reflecting the pandemic's impact or transitional challenges. Subsequently, a steady increase occurred, reaching 42.66 in 2024, the highest in the observed period. This trend suggests enhanced effectiveness in generating revenues from fixed assets, possibly due to operational optimization or improved asset management despite the declining net fixed asset base post-2022.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Accenture PLC, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Revenues | 64,896,464) | 64,111,745) | 61,594,305) | 50,533,389) | 44,327,039) | 43,215,013) | |
| Property and equipment, net | 1,521,119) | 1,530,007) | 1,659,140) | 1,639,105) | 1,545,568) | 1,391,166) | |
| Operating lease assets | 2,757,396) | 2,637,479) | 3,018,535) | 3,182,519) | 3,183,346) | —) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 4,278,515) | 4,167,486) | 4,677,675) | 4,821,624) | 4,728,914) | 1,391,166) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 15.17 | 15.38 | 13.17 | 10.48 | 9.37 | 31.06 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Adobe Inc. | 9.70 | 8.13 | 7.61 | 7.46 | 6.42 | 8.64 | |
| Cadence Design Systems Inc. | 7.68 | 7.38 | 6.57 | 6.85 | 6.04 | — | |
| CrowdStrike Holdings Inc. | 4.57 | 4.21 | 4.97 | 4.30 | 3.54 | — | |
| Fair Isaac Corp. | 25.24 | 41.28 | 25.38 | 17.51 | 12.44 | 21.88 | |
| International Business Machines Corp. | 7.03 | 7.09 | 7.37 | 6.43 | 5.00 | — | |
| Intuit Inc. | 11.47 | 9.99 | 8.86 | 8.30 | 8.00 | 8.70 | |
| Microsoft Corp. | 1.59 | 1.93 | 2.26 | 2.37 | 2.70 | 2.87 | |
| Oracle Corp. | 1.84 | 2.31 | 3.21 | 4.20 | 4.74 | — | |
| Palantir Technologies Inc. | 11.92 | 9.65 | 7.07 | 6.21 | 4.43 | — | |
| Palo Alto Networks Inc. | 10.75 | 11.16 | 9.17 | 7.32 | 5.62 | 9.80 | |
| Salesforce Inc. | 5.76 | 4.76 | 4.65 | 3.75 | 3.16 | — | |
| ServiceNow Inc. | 4.47 | 4.33 | 4.18 | 4.34 | 4.06 | — | |
| Synopsys Inc. | 5.43 | 5.19 | 4.87 | 4.35 | 3.88 | 7.82 | |
| Workday Inc. | 4.77 | 4.29 | 3.75 | 3.11 | 2.96 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Software & Services | 2.54 | 3.04 | 3.50 | 3.58 | 3.82 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Information Technology | 3.05 | 3.32 | 3.85 | 4.03 | 3.87 | — | |
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 64,896,464 ÷ 4,278,515 = 15.17
2 Click competitor name to see calculations.
- Revenues
- Revenues demonstrate a consistent upward trend over the observed periods, increasing from approximately 43.2 billion US dollars in 2019 to around 64.9 billion US dollars in 2024. The growth is particularly notable between 2020 and 2022, where revenues rose sharply from roughly 44.3 billion to 61.6 billion US dollars. Following this period, revenue growth continues but at a more moderate pace, reaching about 64.9 billion by 2024.
- Property and equipment, net (including operating lease, right-of-use asset)
- The net value of property and equipment shows significant fluctuations. There is a substantial increase from roughly 1.4 billion US dollars in 2019 to about 4.7 billion in 2020, indicating possible asset acquisitions or reclassifications related to operating leases. Subsequently, the net property and equipment value remains relatively stable with minor decreases and increases, ending at around 4.3 billion US dollars in 2024. This level is still markedly higher than the 2019 baseline.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This ratio, which measures revenues generated per unit of fixed assets, shows a marked decline from 31.06 in 2019 to 9.37 in 2020, correlating with the substantial increase in asset base that year. After 2020, the ratio improves steadily, reaching a peak of 15.38 in 2023 before slightly decreasing to 15.17 in 2024. While this confirms an improved efficiency in using fixed assets to generate revenue compared to 2020, it remains significantly lower than the 2019 level.
- Overall Analysis
- Overall, the data reflects a period of asset base expansion around 2020, which significantly affected asset utilization metrics initially. Revenues have grown consistently, suggesting successful business expansion or increased market demand. Although fixed asset turnover diminished sharply following the rise in asset base, it shows a recovery trend indicating improved operational efficiency over time. The fixed asset base has stabilized after an initial surge, reflecting a possible stabilization or optimization of capital investment.
Total Asset Turnover
Accenture PLC, total asset turnover calculation, comparison to benchmarks
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Revenues | 64,896,464) | 64,111,745) | 61,594,305) | 50,533,389) | 44,327,039) | 43,215,013) | |
| Total assets | 55,932,363) | 51,245,305) | 47,263,390) | 43,175,843) | 37,078,593) | 29,789,880) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 1.16 | 1.25 | 1.30 | 1.17 | 1.20 | 1.45 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Adobe Inc. | 0.71 | 0.65 | 0.65 | 0.58 | 0.53 | 0.54 | |
| Cadence Design Systems Inc. | 0.52 | 0.72 | 0.69 | 0.68 | 0.68 | — | |
| CrowdStrike Holdings Inc. | 0.46 | 0.45 | 0.40 | 0.32 | 0.34 | — | |
| Fair Isaac Corp. | 1.00 | 0.96 | 0.96 | 0.84 | 0.81 | 0.81 | |
| International Business Machines Corp. | 0.46 | 0.46 | 0.48 | 0.43 | 0.47 | — | |
| Intuit Inc. | 0.51 | 0.52 | 0.46 | 0.62 | 0.70 | 1.08 | |
| Microsoft Corp. | 0.48 | 0.51 | 0.54 | 0.50 | 0.47 | 0.44 | |
| Oracle Corp. | 0.38 | 0.37 | 0.39 | 0.31 | 0.34 | — | |
| Palantir Technologies Inc. | 0.45 | 0.49 | 0.55 | 0.47 | 0.41 | — | |
| Palo Alto Networks Inc. | 0.40 | 0.48 | 0.45 | 0.42 | 0.38 | 0.44 | |
| Salesforce Inc. | 0.35 | 0.32 | 0.28 | 0.32 | 0.31 | — | |
| ServiceNow Inc. | 0.54 | 0.52 | 0.54 | 0.55 | 0.52 | — | |
| Synopsys Inc. | 0.47 | 0.57 | 0.54 | 0.48 | 0.46 | 0.52 | |
| Workday Inc. | 0.44 | 0.46 | 0.49 | 0.50 | 0.53 | — | |
| Total Asset Turnover, Sector | |||||||
| Software & Services | 0.49 | 0.51 | 0.53 | 0.49 | 0.48 | — | |
| Total Asset Turnover, Industry | |||||||
| Information Technology | 0.58 | 0.61 | 0.65 | 0.62 | 0.58 | — | |
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
1 2024 Calculation
Total asset turnover = Revenues ÷ Total assets
= 64,896,464 ÷ 55,932,363 = 1.16
2 Click competitor name to see calculations.
- Revenues
- Revenues demonstrate a consistent upward trajectory over the analyzed period, increasing from 43.2 billion to approximately 64.9 billion US dollars. This represents a substantial growth, particularly notable from 2020 onwards where the increase accelerated, peaking in 2022 before showing a more moderate rise in the subsequent years.
- Total assets
- Total assets have expanded steadily each year, growing from roughly 29.8 billion to 55.9 billion US dollars. The asset base nearly doubled over the six-year span, reflecting significant investment or accumulation of resources, potentially to support revenue growth or operational expansion.
- Total asset turnover
- The total asset turnover ratio exhibits a decreasing trend overall, dropping from 1.45 in 2019 to 1.16 in 2024. After a decline until 2021, there was a minor recovery in 2022, followed by a decline again in the later years. This suggests that while assets have increased substantially, the efficiency of asset utilization to generate revenues has diminished somewhat over time.
- Summary
- The financial data indicates robust revenue growth accompanied by a significant increase in total assets, suggesting expansion and increased capital deployment. However, the declining total asset turnover ratio points to a relative decrease in efficiency in using those assets to generate revenues. This could warrant further analysis to understand the drivers behind the asset growth and whether it aligns strategically with operations and revenue generation capabilities.
Equity Turnover
Accenture PLC, equity turnover calculation, comparison to benchmarks
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Revenues | 64,896,464) | 64,111,745) | 61,594,305) | 50,533,389) | 44,327,039) | 43,215,013) | |
| Total Accenture plc shareholders’ equity | 28,288,646) | 25,692,839) | 22,106,097) | 19,529,454) | 17,000,536) | 14,409,008) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 2.29 | 2.50 | 2.79 | 2.59 | 2.61 | 3.00 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Adobe Inc. | 1.52 | 1.18 | 1.25 | 1.07 | 0.97 | 1.06 | |
| Cadence Design Systems Inc. | 0.99 | 1.20 | 1.30 | 1.09 | 1.08 | — | |
| CrowdStrike Holdings Inc. | 1.33 | 1.53 | 1.42 | 1.00 | 0.65 | — | |
| Fair Isaac Corp. | — | — | — | — | 3.91 | 4.00 | |
| International Business Machines Corp. | 2.30 | 2.75 | 2.76 | 3.03 | 3.57 | — | |
| Intuit Inc. | 0.88 | 0.83 | 0.77 | 0.98 | 1.50 | 1.81 | |
| Microsoft Corp. | 0.91 | 1.03 | 1.19 | 1.18 | 1.21 | 1.23 | |
| Oracle Corp. | 6.08 | 46.56 | — | 7.73 | 3.24 | — | |
| Palantir Technologies Inc. | 0.57 | 0.64 | 0.74 | 0.67 | 0.72 | — | |
| Palo Alto Networks Inc. | 1.55 | 3.94 | 26.20 | 6.71 | 3.09 | 1.83 | |
| Salesforce Inc. | 0.58 | 0.54 | 0.46 | 0.51 | 0.50 | — | |
| ServiceNow Inc. | 1.14 | 1.18 | 1.44 | 1.60 | 1.59 | — | |
| Synopsys Inc. | 0.68 | 0.95 | 0.92 | 0.79 | 0.75 | 0.82 | |
| Workday Inc. | 0.90 | 1.11 | 1.13 | 1.32 | 1.46 | — | |
| Equity Turnover, Sector | |||||||
| Software & Services | 1.16 | 1.30 | 1.44 | 1.44 | 1.51 | — | |
| Equity Turnover, Industry | |||||||
| Information Technology | 1.42 | 1.57 | 1.74 | 1.80 | 1.82 | — | |
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
1 2024 Calculation
Equity turnover = Revenues ÷ Total Accenture plc shareholders’ equity
= 64,896,464 ÷ 28,288,646 = 2.29
2 Click competitor name to see calculations.
- Revenues
- Revenues have shown a consistent upward trend over the six-year period. Starting from approximately 43.2 billion USD in 2019, revenues increased steadily each year, reaching close to 64.9 billion USD by 2024. The growth appears particularly strong between 2020 and 2022, with a significant jump of over 11 billion USD in two years, indicating robust business expansion or increased market demand.
- Total Shareholders’ Equity
- Total shareholders’ equity has also exhibited a steady increase throughout the period. From about 14.4 billion USD in 2019, equity grew to nearly 28.3 billion USD in 2024. This growth in equity suggests consistent retention of earnings or capital inflows, strengthening the financial base of the entity over time.
- Equity Turnover
- The equity turnover ratio has generally declined from 3.00 in 2019 to 2.29 in 2024. After a drop to 2.61 in 2020, the ratio stabilized slightly around 2.5 to 2.79 between 2021 and 2022, before continuing its downward path through 2024. This declining trend suggests that revenues are increasing at a slower pace relative to the growth in shareholders’ equity, indicating a potential decrease in asset efficiency or a more capital-intensive business model over the years.
- Overall Insights
- The company demonstrates strong revenue and equity growth, highlighting expansion and improved financial strength. However, the declining equity turnover signals that the increase in equity outpaces revenue gains, which might imply a need to assess asset utilization strategies to maintain operational efficiency. Monitoring this ratio will be crucial to ensure that growth in equity translates effectively into revenue generation.