Stock Analysis on Net

Accenture PLC (NYSE:ACN)

Analysis of Profitability Ratios 

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

Accenture PLC, profitability ratios

Microsoft Excel LibreOffice Calc
Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
Return on Sales
Gross profit margin 32.38% 31.53% 30.81% 29.91% 30.00% 29.53%
Operating profit margin 15.08% 14.69% 14.59% 14.04% 12.60% 13.82%
Net profit margin 11.69% 11.52% 11.06% 9.76% 9.37% 11.82%
Return on Investment
Return on equity (ROE) 30.25% 30.05% 33.17% 39.17% 38.50% 54.42%
Return on assets (ROA) 13.68% 13.78% 16.04% 16.61% 15.18% 19.95%

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

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 improved from 2019 to 2020 and from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Accenture PLC operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Accenture PLC net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Accenture PLC ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. Accenture PLC ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

Gross Profit Margin

Accenture PLC, gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
Selected Financial Data (US$ in thousands)
Gross profit 16,364,128  13,976,158  13,314,688  12,442,913  11,030,492  10,277,427 
Revenues 50,533,389  44,327,039  43,215,013  41,603,428  36,765,478  34,797,661 
Profitability Ratio
Gross profit margin1 32.38% 31.53% 30.81% 29.91% 30.00% 29.53%
Benchmarks
Gross Profit Margin, Competitors2
Adobe Inc. 88.18% 86.62% 85.03% 86.77% 86.16% 86.00%
Automatic Data Processing Inc. 42.42% 42.12% 42.95% 41.15% 41.28% 41.37%
Fidelity National Information Services Inc. 37.44% 33.49% 36.03% 33.88% 32.25%
International Business Machines Corp. 54.90% 48.32% 47.30% 46.41% 45.78%
Intuit Inc. 82.53% 82.05% 82.80% 83.62% 84.37% 83.98%
Microsoft Corp. 68.93% 67.78% 65.90% 65.25% 61.91% 61.58%
Oracle Corp. 80.59% 79.68% 79.76% 79.71% 80.20% 79.81%
PayPal Holdings Inc. 46.99% 46.62% 44.94% 46.53% 48.87%
salesforce.com inc. 74.41% 75.23% 74.02% 73.54% 73.38%
ServiceNow Inc. 77.05% 78.16% 76.98% 76.13% 74.15%

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 16,364,128 ÷ 50,533,389 = 32.38%

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 improved from 2019 to 2020 and from 2020 to 2021.

Operating Profit Margin

Accenture PLC, operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
Selected Financial Data (US$ in thousands)
Operating income 7,621,529  6,513,644  6,305,074  5,841,041  4,632,609  4,810,445 
Revenues 50,533,389  44,327,039  43,215,013  41,603,428  36,765,478  34,797,661 
Profitability Ratio
Operating profit margin1 15.08% 14.69% 14.59% 14.04% 12.60% 13.82%
Benchmarks
Operating Profit Margin, Competitors2
Adobe Inc. 36.76% 32.93% 29.25% 31.45% 29.69% 25.51%
Automatic Data Processing Inc. 22.16% 21.53% 21.34% 18.85% 18.80% 18.77%
Fidelity National Information Services Inc. 7.60% 4.40% 9.38% 17.31% 16.35%
International Business Machines Corp. 11.97% 9.22% 13.67% 16.61% 14.91%
Intuit Inc. 25.95% 28.34% 27.33% 25.10% 26.95% 26.46%
Mastercard Inc. 53.39% 52.81% 57.24% 48.71% 52.99%
Microsoft Corp. 41.59% 37.03% 34.14% 31.77% 24.82% 23.65%
Oracle Corp. 37.58% 35.57% 34.26% 34.34% 33.69% 34.02%
PayPal Holdings Inc. 16.80% 15.33% 15.30% 14.20% 16.24%
salesforce.com inc. 2.14% 1.74% 4.03% 2.25% 0.77%
ServiceNow Inc. 4.36% 4.40% 1.22% -1.63% -5.25%
Visa Inc. 65.56% 64.46% 65.29% 62.86% 66.15% 52.27%
Operating Profit Margin, Sector
Software & Services 30.70% 27.16% 27.43% 26.52% 24.02%
Operating Profit Margin, Industry
Information Technology 29.60% 26.04% 26.82% 27.42% 25.02%

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 7,621,529 ÷ 50,533,389 = 15.08%

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 2019 to 2020 and from 2020 to 2021.

Net Profit Margin

Accenture PLC, net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc 5,906,809  5,107,839  4,779,112  4,059,907  3,445,149  4,111,892 
Revenues 50,533,389  44,327,039  43,215,013  41,603,428  36,765,478  34,797,661 
Profitability Ratio
Net profit margin1 11.69% 11.52% 11.06% 9.76% 9.37% 11.82%
Benchmarks
Net Profit Margin, Competitors2
Adobe Inc. 30.55% 40.88% 26.42% 28.69% 23.20% 19.96%
Automatic Data Processing Inc. 17.32% 16.91% 16.17% 12.16% 14.00% 12.79%
Fidelity National Information Services Inc. 3.00% 1.26% 2.88% 10.04% 14.46%
International Business Machines Corp. 10.01% 7.59% 12.22% 10.97% 7.27%
Intuit Inc. 21.41% 23.78% 22.95% 20.31% 18.76% 20.86%
Mastercard Inc. 46.00% 41.90% 48.08% 39.19% 31.33%
Microsoft Corp. 36.45% 30.96% 31.18% 15.02% 23.57% 19.69%
Oracle Corp. 33.96% 25.94% 28.05% 9.60% 24.74% 24.03%
PayPal Holdings Inc. 16.43% 19.59% 13.84% 13.31% 13.71%
salesforce.com inc. 19.16% 0.74% 8.36% 1.22% 2.14%
ServiceNow Inc. 3.90% 2.62% 18.11% -1.02% -7.71%
Visa Inc. 51.07% 49.74% 52.57% 49.98% 36.49% 39.72%
Net Profit Margin, Sector
Software & Services 27.03% 22.56% 23.85% 15.52% 17.45%
Net Profit Margin, Industry
Information Technology 26.11% 22.23% 23.17% 19.61% 18.55%

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

1 2021 Calculation
Net profit margin = 100 × Net income attributable to Accenture plc ÷ Revenues
= 100 × 5,906,809 ÷ 50,533,389 = 11.69%

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 improved from 2019 to 2020 and from 2020 to 2021.

Return on Equity (ROE)

Accenture PLC, ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc 5,906,809  5,107,839  4,779,112  4,059,907  3,445,149  4,111,892 
Total Accenture plc shareholders’ equity 19,529,454  17,000,536  14,409,008  10,364,753  8,949,477  7,555,262 
Profitability Ratio
ROE1 30.25% 30.05% 33.17% 39.17% 38.50% 54.42%
Benchmarks
ROE, Competitors2
Adobe Inc. 32.59% 39.66% 28.03% 27.67% 20.02% 15.74%
Automatic Data Processing Inc. 45.83% 42.88% 42.46% 46.85% 43.59% 33.30%
Fidelity National Information Services Inc. 0.88% 0.32% 0.60% 8.28% 12.17%
International Business Machines Corp. 30.38% 27.14% 45.25% 51.96% 32.70%
Intuit Inc. 20.89% 35.76% 41.53% 51.44% 71.71% 84.32%
Mastercard Inc. 118.80% 100.31% 137.76% 108.60% 71.60%
Microsoft Corp. 43.15% 37.43% 38.35% 20.03% 29.29% 23.33%
Oracle Corp. 262.43% 83.94% 50.87% 8.37% 17.33% 18.82%
PayPal Holdings Inc. 19.19% 20.99% 14.56% 13.37% 11.22%
salesforce.com inc. 9.81% 0.37% 7.11% 1.36% 2.40%
ServiceNow Inc. 6.22% 4.18% 29.45% -2.40% -25.53%
Visa Inc. 32.75% 30.01% 34.83% 30.29% 20.45% 18.20%
ROE, Sector
Software & Services 33.60% 28.33% 31.62% 23.46% 24.15%
ROE, Industry
Information Technology 40.02% 33.11% 34.56% 30.73% 23.48%

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

1 2021 Calculation
ROE = 100 × Net income attributable to Accenture plc ÷ Total Accenture plc shareholders’ equity
= 100 × 5,906,809 ÷ 19,529,454 = 30.25%

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 deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Return on Assets (ROA)

Accenture PLC, ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc 5,906,809  5,107,839  4,779,112  4,059,907  3,445,149  4,111,892 
Total assets 43,175,843  37,078,593  29,789,880  24,449,083  22,689,890  20,609,004 
Profitability Ratio
ROA1 13.68% 13.78% 16.04% 16.61% 15.18% 19.95%
Benchmarks
ROA, Competitors2
Adobe Inc. 17.70% 21.66% 14.22% 13.80% 11.65% 9.20%
Automatic Data Processing Inc. 5.33% 6.30% 5.47% 4.37% 4.66% 3.42%
Fidelity National Information Services Inc. 0.50% 0.19% 0.36% 3.56% 5.38%
International Business Machines Corp. 4.35% 3.58% 6.20% 7.07% 4.59%
Intuit Inc. 13.29% 16.70% 24.78% 23.39% 23.87% 23.04%
Mastercard Inc. 23.06% 19.09% 27.77% 23.57% 18.36%
Microsoft Corp. 18.36% 14.70% 13.69% 6.40% 8.80% 8.67%
Oracle Corp. 10.48% 8.78% 10.20% 2.79% 6.92% 7.93%
PayPal Holdings Inc. 5.50% 5.97% 4.79% 4.75% 4.40%
salesforce.com inc. 6.14% 0.23% 3.61% 0.61% 1.02%
ServiceNow Inc. 2.13% 1.36% 10.41% -0.69% -4.39%
Visa Inc. 14.85% 13.43% 16.65% 14.88% 9.85% 9.36%
ROA, Sector
Software & Services 11.58% 9.50% 10.44% 7.30% 7.66%
ROA, Industry
Information Technology 14.67% 11.57% 12.31% 10.99% 8.99%

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

1 2021 Calculation
ROA = 100 × Net income attributable to Accenture plc ÷ Total assets
= 100 × 5,906,809 ÷ 43,175,843 = 13.68%

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 deteriorated from 2019 to 2020 and from 2020 to 2021.