Accenture PLC (NYSE:ACN)

Gross Profit Margin

The gross profit margin exhibited a consistent upward trend from 30.81% in 2019 to 32.61% in 2024. This indicates a gradual improvement in production efficiency or pricing power over the period, with a slight dip in 2022 that was subsequently recovered.

Operating Profit Margin

The operating profit margin showed relative stability between 2019 and 2022, fluctuating narrowly around 14.5% to 15.2%. However, in 2023, a decrease to 13.74% was observed, followed by a recovery to 14.79% in 2024. This pattern suggests operational challenges in 2023 that impacted profitability but were addressed by the next year.

Net Profit Margin

The net profit margin followed a moderate upward trajectory from 11.06% in 2019 to a peak of 11.69% in 2021, then declined to 10.72% in 2023 before partially recovering to 11.19% in 2024. The dip from 2022 to 2023 suggests increased expenses or other factors reducing net profitability, with some stabilization thereafter.

Return on Equity (ROE)

The return on equity declined steadily over the period, from a high of 33.17% in 2019 to 25.68% in 2024. The most pronounced decreases occurred after 2021, indicating diminishing profitability relative to shareholder equity, which may reflect increased equity base, reduced net income, or both.

Return on Assets (ROA)

The return on assets similarly trended downward, moving from 16.04% in 2019 to 12.99% in 2024. The decline suggests decreasing efficiency in generating profit from the company's assets, with particularly notable drops after 2021, in line with the ROE pattern.

Gross Profit

Over the period analyzed, gross profit exhibited a consistent upward trend, increasing steadily from approximately $13.3 billion in 2019 to around $21.2 billion in 2024. This represents a substantial growth, reflecting possible improvements in cost management, increased sales, or both.

Revenues

Revenues showed a similar positive trajectory, rising from roughly $43.2 billion in 2019 to nearly $64.9 billion in 2024. The increments suggest ongoing business expansion or enhanced market penetration, with notable jumps occurring especially between 2020 and 2022.

Gross Profit Margin

The gross profit margin percentage displayed relatively stable behavior with slight fluctuations, starting at 30.81% in 2019 and increasing modestly to 32.61% in 2024. The peak margin was observed in 2021 at 32.38%, followed by a minor decline in 2022 before resuming an upward movement in subsequent years. The overall stability and slight improvement of the margin indicates maintained or enhanced pricing power and cost control efficiency over the period.

Summary Insights

The data reveals healthy financial performance characterized by continuous growth in both gross profit and revenue. The steady improvement in gross profit margin, though subtle, complements the revenue growth and signifies effective operational management. The combination of these trends suggests that the company has been successful in expanding its revenue base while maintaining or marginally improving profitability over the six-year timeframe.

Operating Income

The operating income exhibits a general upward trend over the period analyzed. Starting at approximately 6.31 billion US dollars in 2019, it rises steadily each year except for a slight decline observed in 2023, before increasing again in 2024 to its highest value of around 9.60 billion US dollars. This pattern suggests overall growth in operational profitability despite some fluctuations.

Revenues

Revenues demonstrate consistent growth during the period. Beginning at about 43.2 billion US dollars in 2019, revenues increase each year, with significant increments noted especially between 2020 and 2022. By 2024, revenues reach close to 64.9 billion US dollars, indicating a strong upward trajectory in sales or service income.

Operating Profit Margin

The operating profit margin remains relatively stable, fluctuating within a narrow range between approximately 13.7% and 15.2%. A gradual increase is noticeable from 2019 through 2022, peaking at just above 15%. However, a noticeable dip occurs in 2023, declining to about 13.74%, followed by a partial recovery in 2024 to approximately 14.79%. This reflects some volatility in efficiency or cost management despite overall profitability gains.

Summary Insight

The data reflects a company experiencing steady revenue growth and improving operating income over the years, indicative of successful business expansion or increased market demand. The operating profit margin’s relative stability suggests managed operational efficiency, although the dip observed in 2023 warrants attention for potential cost or pricing pressures faced during that year. Overall, the financial indicators point to positive operational performance with minor volatility in margins.

The annual financial data reveals a consistent upward trend in both net income and revenues over the analyzed periods, indicating overall growth in the company's financial performance.

Net Income Attributable to Accenture plc

The net income shows a steady increase from approximately 4.78 billion USD in 2019 to about 7.26 billion USD in 2024. This upward trajectory suggests effective profitability improvements and successful management of operational activities over the years. Notably, the largest single-year increase appears between 2020 and 2021, emphasizing a period of strong financial performance.

Revenues

Revenues exhibit a strong growth trend, rising from around 43.2 billion USD in 2019 to nearly 64.9 billion USD in 2024. The data indicates significant revenue expansion particularly after 2020, with the largest increments observed in the years leading to 2023. This sustained revenue growth supports the enhancing net income figures and demonstrates robust market demand or expansion strategies.

Net Profit Margin

The net profit margin percentages display relative stability throughout the periods with minor fluctuations. Beginning at 11.06% in 2019, the margin experiences a gradual increase, peaking at 11.69% in 2021, followed by a slight dip in subsequent years before recovering to 11.19% in 2024. This consistency suggests that profitability efficiency has been maintained despite rapid revenue growth, indicating effective cost control relative to revenue increases.

Overall, the financial data portrays a positive growth narrative with increasing revenues and net income, while maintaining a stable profit margin. This pattern reflects healthy financial management and sustainable business expansion during the observed years.

The financial data over the six-year period demonstrates several important trends related to profitability and shareholders' equity.

Net Income

Net income attributable to the company shows a consistent upward trajectory from 2019 to 2024. Specifically, net income increased from approximately $4.78 billion in 2019 to around $7.26 billion in 2024. This represents a steady growth, with the most significant increments occurring between 2020 and 2022. Although growth appears to slow slightly from 2022 to 2023, net income remains relatively stable and continues to rise through 2024.

Shareholders' Equity

Total shareholders’ equity increased consistently each year, rising from around $14.4 billion in 2019 to approximately $28.3 billion by 2024. This upward trend indicates ongoing capital accumulation or retained earnings boosting the equity base. The growth in equity is substantial and roughly doubles over the time span considered.

Return on Equity (ROE)

ROE experienced a slight declining trend over the period despite strong growth in net income and shareholders’ equity. It started at 33.17% in 2019, dipped steadily to 25.68% by 2024. The decline suggests that net income growth is somewhat outpaced by the increase in equity, which may indicate either reinvestment strategies or changes in the capital structure affecting efficiency in generating returns on equity.

In summary, the company has demonstrated solid growth in profitability and equity. However, the decreasing ROE implies that while absolute profits are increasing, the efficiency with which equity is leveraged to generate net income is weakening moderately. This trend warrants monitoring to understand the underlying causes, such as changes in business investments, capital allocation, or other operational factors.

Net income attributable to Accenture plc

The net income shows a consistent upward trend over the analyzed period. Starting at 4,779,112 thousand US dollars in 2019, it increased steadily each year, reaching 7,264,787 thousand US dollars in 2024. This indicates sustained profitability growth.

Total assets

Total assets have shown significant growth as well, rising from 29,789,880 thousand US dollars in 2019 to 55,932,363 thousand US dollars in 2024. The asset base nearly doubled within this period, suggesting expansion and increased resource availability.

Return on Assets (ROA)

ROA experienced a decline over the years despite the growth in net income and total assets. It decreased from 16.04% in 2019 to 12.99% in 2024, indicating that the efficiency in generating profit from assets has diminished somewhat. While profitability increased in absolute terms, asset growth outpaced profit generation efficiency.