Stock Analysis on Net

Accenture PLC (NYSE:ACN)

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Accenture PLC, profitability ratios

Microsoft Excel
Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018
Return on Sales
Gross profit margin 32.34% 31.99% 32.38% 31.53% 30.81% 29.91%
Operating profit margin 13.74% 15.21% 15.08% 14.69% 14.59% 14.04%
Net profit margin 10.72% 11.17% 11.69% 11.52% 11.06% 9.76%
Return on Investment
Return on equity (ROE) 26.75% 31.11% 30.25% 30.05% 33.17% 39.17%
Return on assets (ROA) 13.41% 14.55% 13.68% 13.78% 16.04% 16.61%

Based on: 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), 10-K (reporting date: 2018-08-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Accenture PLC gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Accenture PLC operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Accenture PLC net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Accenture PLC ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Accenture PLC ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Gross Profit Margin

Accenture PLC, gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018
Selected Financial Data (US$ in thousands)
Gross profit 20,731,607 19,701,539 16,364,128 13,976,158 13,314,688 12,442,913
Revenues 64,111,745 61,594,305 50,533,389 44,327,039 43,215,013 41,603,428
Profitability Ratio
Gross profit margin1 32.34% 31.99% 32.38% 31.53% 30.81% 29.91%
Benchmarks
Gross Profit Margin, Competitors2
Adobe Inc. 87.87% 87.70% 88.18% 86.62% 85.03% 86.77%
International Business Machines Corp. 55.45% 54.00% 54.90% 48.32% 47.30%
Intuit Inc. 78.13% 81.09% 82.53% 82.05% 82.80% 83.62%
Microsoft Corp. 68.92% 68.40% 68.93% 67.78% 65.90% 65.25%
Oracle Corp. 72.85% 79.08% 80.59% 79.68% 79.76% 79.71%
Palo Alto Networks Inc. 72.29% 68.76% 70.05% 70.68% 72.12% 71.61%
Salesforce Inc. 73.34% 73.48% 74.41% 75.23% 74.02%
ServiceNow Inc. 78.59% 78.29% 77.05% 78.16% 76.98%
Synopsys Inc. 79.08% 79.07% 79.50% 78.44% 77.60% 76.42%

Based on: 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), 10-K (reporting date: 2018-08-31).

1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 20,731,607 ÷ 64,111,745 = 32.34%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Accenture PLC gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Operating Profit Margin

Accenture PLC, operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018
Selected Financial Data (US$ in thousands)
Operating income 8,809,889 9,367,181 7,621,529 6,513,644 6,305,074 5,841,041
Revenues 64,111,745 61,594,305 50,533,389 44,327,039 43,215,013 41,603,428
Profitability Ratio
Operating profit margin1 13.74% 15.21% 15.08% 14.69% 14.59% 14.04%
Benchmarks
Operating Profit Margin, Competitors2
Adobe Inc. 34.26% 34.64% 36.76% 32.93% 29.25% 31.45%
International Business Machines Corp. 15.17% 13.50% 11.97% 9.22% 13.67%
Intuit Inc. 21.86% 20.20% 25.95% 28.34% 27.33% 25.10%
Microsoft Corp. 41.77% 42.06% 41.59% 37.03% 34.14% 31.77%
Oracle Corp. 26.21% 25.74% 37.58% 35.57% 34.26% 34.34%
Palo Alto Networks Inc. 5.62% -3.43% -7.15% -5.25% -1.87% -5.68%
Salesforce Inc. 3.29% 2.07% 2.14% 1.74% 4.03%
ServiceNow Inc. 8.49% 4.90% 4.36% 4.40% 1.22%
Synopsys Inc. 21.72% 22.87% 17.48% 16.83% 15.48% 11.54%
Operating Profit Margin, Sector
Software & Services 28.03% 27.98% 28.89% 25.05% 24.34%
Operating Profit Margin, Industry
Information Technology 26.32% 28.47% 28.76% 24.95% 25.42%

Based on: 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), 10-K (reporting date: 2018-08-31).

1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 8,809,889 ÷ 64,111,745 = 13.74%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Accenture PLC operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Net Profit Margin

Accenture PLC, net profit margin calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc 6,871,557 6,877,169 5,906,809 5,107,839 4,779,112 4,059,907
Revenues 64,111,745 61,594,305 50,533,389 44,327,039 43,215,013 41,603,428
Profitability Ratio
Net profit margin1 10.72% 11.17% 11.69% 11.52% 11.06% 9.76%
Benchmarks
Net Profit Margin, Competitors2
Adobe Inc. 27.97% 27.01% 30.55% 40.88% 26.42% 28.69%
International Business Machines Corp. 12.13% 2.71% 10.01% 7.59% 12.22%
Intuit Inc. 16.59% 16.23% 21.41% 23.78% 22.95% 20.31%
Microsoft Corp. 34.15% 36.69% 36.45% 30.96% 31.18% 15.02%
Oracle Corp. 17.02% 15.83% 33.96% 25.94% 28.05% 9.60%
Palo Alto Networks Inc. 6.38% -4.85% -11.72% -7.83% -2.82% -6.51%
Salesforce Inc. 0.66% 5.45% 19.16% 0.74% 8.36%
ServiceNow Inc. 19.30% 4.49% 3.90% 2.62% 18.11%
Synopsys Inc. 21.05% 19.38% 18.02% 18.03% 15.84% 13.86%
Net Profit Margin, Sector
Software & Services 22.47% 22.24% 25.99% 20.85% 21.80%
Net Profit Margin, Industry
Information Technology 22.13% 24.07% 25.56% 21.38% 22.17%

Based on: 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), 10-K (reporting date: 2018-08-31).

1 2023 Calculation
Net profit margin = 100 × Net income attributable to Accenture plc ÷ Revenues
= 100 × 6,871,557 ÷ 64,111,745 = 10.72%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Accenture PLC net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Return on Equity (ROE)

Accenture PLC, ROE calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc 6,871,557 6,877,169 5,906,809 5,107,839 4,779,112 4,059,907
Total Accenture plc shareholders’ equity 25,692,839 22,106,097 19,529,454 17,000,536 14,409,008 10,364,753
Profitability Ratio
ROE1 26.75% 31.11% 30.25% 30.05% 33.17% 39.17%
Benchmarks
ROE, Competitors2
Adobe Inc. 32.86% 33.85% 32.59% 39.66% 28.03% 27.67%
International Business Machines Corp. 33.29% 7.47% 30.38% 27.14% 45.25%
Intuit Inc. 13.81% 12.57% 20.89% 35.76% 41.53% 51.44%
Microsoft Corp. 35.09% 43.68% 43.15% 37.43% 38.35% 20.03%
Oracle Corp. 792.45% 262.43% 83.94% 50.87% 8.37%
Palo Alto Networks Inc. 25.15% -127.14% -78.63% -24.23% -5.16% -15.30%
Salesforce Inc. 0.36% 2.48% 9.81% 0.37% 7.11%
ServiceNow Inc. 22.69% 6.46% 6.22% 4.18% 29.45%
Synopsys Inc. 20.01% 17.85% 14.31% 13.54% 13.04% 12.43%
ROE, Sector
Software & Services 29.37% 32.03% 37.53% 31.80% 36.15%
ROE, Industry
Information Technology 31.93% 38.69% 42.56% 35.29% 36.68%

Based on: 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), 10-K (reporting date: 2018-08-31).

1 2023 Calculation
ROE = 100 × Net income attributable to Accenture plc ÷ Total Accenture plc shareholders’ equity
= 100 × 6,871,557 ÷ 25,692,839 = 26.75%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Accenture PLC ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Return on Assets (ROA)

Accenture PLC, ROA calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc 6,871,557 6,877,169 5,906,809 5,107,839 4,779,112 4,059,907
Total assets 51,245,305 47,263,390 43,175,843 37,078,593 29,789,880 24,449,083
Profitability Ratio
ROA1 13.41% 14.55% 13.68% 13.78% 16.04% 16.61%
Benchmarks
ROA, Competitors2
Adobe Inc. 18.23% 17.51% 17.70% 21.66% 14.22% 13.80%
International Business Machines Corp. 5.55% 1.29% 4.35% 3.58% 6.20%
Intuit Inc. 8.58% 7.45% 13.29% 16.70% 24.78% 23.39%
Microsoft Corp. 17.56% 19.94% 18.36% 14.70% 13.69% 6.40%
Oracle Corp. 6.33% 6.15% 10.48% 8.78% 10.20% 2.79%
Palo Alto Networks Inc. 3.03% -2.18% -4.87% -2.95% -1.24% -2.54%
Salesforce Inc. 0.21% 1.52% 6.14% 0.23% 3.61%
ServiceNow Inc. 9.96% 2.44% 2.13% 1.36% 10.41%
Synopsys Inc. 11.90% 10.45% 8.66% 8.27% 8.31% 7.04%
ROA, Sector
Software & Services 11.45% 11.67% 12.60% 10.03% 10.89%
ROA, Industry
Information Technology 13.10% 15.14% 15.65% 12.15% 12.80%

Based on: 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), 10-K (reporting date: 2018-08-31).

1 2023 Calculation
ROA = 100 × Net income attributable to Accenture plc ÷ Total assets
= 100 × 6,871,557 ÷ 51,245,305 = 13.41%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Accenture PLC ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.