Accenture PLC (NYSE:ACN)

The financial ratios presented illustrate several trends in asset and equity utilization over multiple quarters.

Net Fixed Asset Turnover

This ratio shows a generally increasing trend from approximately 31.06 in late 2018 to a peak around 44.49 in early 2025, despite some fluctuations. The increase indicates improved efficiency in using fixed assets to generate sales over the observed period. Between mid-2019 and late 2020, the ratio fluctuated in the high 20s to low 30s before embarking on a steady increase, reaching the mid-40s level by 2024. There is a slight dip towards the end of the data but the overall trend remains upward.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

This ratio starts from 31.06 at the earliest observed date, then drops sharply to the range of approximately 9.37 to 10.48 through 2019 to 2021. From 2021 onwards, a clear upward trend appears, climbing steadily from around 11.17 to approximately 16.37 before a minor decline towards the end. This pattern suggests increased recognition of assets related to operating leases, and improving efficiency in their utilization as reflected by the rising turnover ratio.

Total Asset Turnover

This ratio shows a declining trend initially, moving from about 1.45 in late 2018 down to around 1.14 by mid-2020. After this period, the ratio exhibits a gradual recovery, rising to approximately 1.32 by mid-2022. However, from this peak, a slow decrease can be observed through 2023 and into 2025, ending near 1.08. The overall movement suggests a period of diminished efficiency in total asset use followed by partial recovery, and a recent slight decline again, pointing to changing asset productivity over time.

Equity Turnover

Equity turnover begins around 3.00 in late 2018 and shows a generally declining trend throughout the timeline, reaching approximately 2.24 in early 2025. The decline is fairly steady, with a reduction in turnover ratios indicating either slower revenue growth relative to equity or an increase in equity base without proportional revenue increases. This trend may signal a decreasing efficiency in generating revenues from shareholders’ equity over this period.

The analyzed financial data demonstrates several notable patterns and trends over the presented quarters.

Revenues

Revenues exhibit a generally upward trajectory across the periods under review. Starting at approximately 10.6 billion US dollars in the quarter ending November 30, 2018, revenue figures fluctuate modestly but maintain an increasing trend, reaching beyond 17.7 billion US dollars by the quarter ending May 31, 2025. There are some minor declines observed intermittently, such as around August 31, 2020, and August 31, 2023, but the overall direction remains positive, illustrating consistent growth in revenue generation over the years.

Property and Equipment, Net

The net value of property and equipment shows a gradual increase over the time frame, beginning at approximately 1.24 billion US dollars in November 2018. There is a general rise with some fluctuations, reaching around 1.61 billion US dollars as of May 31, 2025. However, some slight downward movements are noted, particularly starting in early 2023 and persisting through parts of 2024, indicating potential disposals, depreciation, or asset adjustments in those intervals.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio is reported starting mid-2019 and reveals an increasing trend over time. Beginning at about 31.06, the ratio rises steadily to reach a peak exceeding 44 by mid-2025. This indicates improved efficiency in utilizing fixed assets to generate revenues. The consistent increase suggests either better asset management or enhanced productivity of the existing asset base, reflecting positively on operational effectiveness.

In summary, the data highlights a pattern of revenue growth coupled with moderate asset base expansion. The improving net fixed asset turnover ratio supports the view of enhanced asset utilization. Minor deviations in both revenue and asset values suggest periodic operational adjustments but do not alter the overarching trends of growth and efficiency gains.

Revenues

The revenue figures exhibit a general upward trend over the analyzed periods, increasing from approximately 10.6 billion USD in November 2018 to a peak exceeding 17.7 billion USD in May 2025. Despite some fluctuations, such as a slight decline during mid-2020, the overall trajectory remains positive. This indicates successful business growth and expanded operations over time. Seasonal or quarter-specific variations are visible but do not significantly detract from the increasing revenue pattern.

Property and equipment, net (including operating lease, right-of-use asset)

Property and equipment values show a substantial increase between August 2019 and November 2019, jumping from about 1.39 billion USD to over 4.54 billion USD, indicating a significant change in asset capitalization, possibly reflecting changes in accounting standards or capital investment strategies such as the adoption of the right-of-use asset treatment under new lease accounting rules. Post this increase, the asset base remains relatively stable with minor fluctuations, trending slightly downward from late 2021 through 2025. This stability suggests maintenance of asset levels with occasional disposals or revaluations but no major new capital expenditures.

Net fixed asset turnover (including operating lease, right-of-use asset)

The net fixed asset turnover ratio started from an initial value of 31.06 but dropped significantly to around 9.68-9.37 in the latter part of 2019 and early 2020. Thereafter, it demonstrates a steady and progressive increase from about 9.7 in early 2020 to roughly 16 in mid-2025. This improvement indicates enhanced efficiency in utilizing fixed assets to generate revenues over time. The initial decline likely correlates with the substantial rise in property and equipment value, which temporarily diluted the turnover ratio before operational gains and possible asset optimization efforts increased asset productivity.

Summary of Relationships

The data reveals that following a major increase in reported asset values in late 2019, the company experienced a temporary decline in asset turnover, reflecting the higher asset base relative to revenues. Over subsequent periods, steady revenue growth combined with controlled asset levels has driven a recovery and improvement in asset turnover ratio, highlighting better asset utilization and operational efficiency. These trends underscore adaptive management of capital resources alongside robust business growth.

The financial data over the observed periods show several notable trends in revenues, total assets, and total asset turnover ratios.

Revenues

Revenues exhibit a general upward trend across the examined quarters. Initial values around 10.6 billion USD increase steadily, reaching peaks above 17 billion USD in later periods. Despite some fluctuations, the overall trajectory is positive, indicating growth in sales or service income over time. Notably, several quarters display significant revenue surges, such as between Feb 28, 2021, and Nov 30, 2021, as well as May 31, 2024, and Nov 30, 2024.

Total Assets

Total assets demonstrate consistent growth throughout the period. From approximately 26.7 billion USD at the start, assets rise steadily to exceed 63 billion USD by the end of the dataset. This growth suggests ongoing investments, acquisitions, or accumulation of resources and capital. The pace of growth appears fairly stable, with assets incrementally increasing every quarter, supporting capacity expansion or operational scaling.

Total Asset Turnover

The total asset turnover ratio, representing the efficiency of asset use in generating revenue, shows a declining trend initially from 1.45 toward 1.08 in the later periods. Early data points near 1.45 decrease gradually, stabilizing around values slightly above 1.1 between 2021 and 2023 and then declining closer to 1.08 by the final periods. This downward trend may indicate a reduction in efficiency, with assets increasing at a faster rate than revenues or challenges in fully leveraging asset base for revenue generation.

Overall, the company has successfully expanded its asset base and increased its revenues over time. However, the decreasing total asset turnover ratio signals a possible efficiency concern, as asset growth is outpacing revenue growth. Continuous monitoring of asset utilization and revenue generation will be essential to maintain sustainable growth and operational effectiveness.

The revenues exhibit a generally upward trend over the reported periods, starting at approximately 10.6 billion US dollars in late 2018 and increasing to around 17.7 billion US dollars by mid-2025. There are some fluctuations within quarters, with notable increases especially from early 2021 through 2025, indicating steady growth in income generation.

Total shareholders' equity also shows a consistent increase throughout the timeframe. Beginning at roughly 12.7 billion US dollars in late 2018, equity grows steadily to exceed 30.5 billion US dollars by mid-2025. This pattern suggests sustained retention of earnings and/or fresh capital infusion, contributing to a strengthening equity base over the years.

The equity turnover ratio, available from mid-2019 onward, demonstrates a mild declining trend. It starts at 3.0 and gradually decreases to approximately 2.24 by mid-2025. This decline might reflect a decrease in the efficiency with which the company uses equity to generate revenues, possibly due to increasing equity balances outpacing revenue growth rates.

Revenue Analysis

Steady increase with periodic fluctuations; notable acceleration post-2020.

Shareholders' Equity

Continuous growth indicating increased equity capital and/or retained earnings accumulation over time.

Equity Turnover

Gradual decline suggesting a relative decrease in revenue generated per unit of equity.