.Profitability Analysis
Difficulty: Beginner
Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).
Ratios (Summary)
Accenture PLC, profitability ratios
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Return on Sales | |||||||
| | Gross profit margin | % | % | % | % | % | % |
| | Operating profit margin | % | % | % | % | % | % |
| | Net profit margin | % | % | % | % | % | % |
| Return on Investment | |||||||
| | Return on equity (ROE) | % | % | % | % | % | % |
| | Return on assets (ROA) | % | % | % | % | % | % |
Source: Based on data from Accenture PLC Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Accenture PLC's gross profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Accenture PLC's operating profit margin improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Accenture PLC's net profit margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | Accenture PLC's ROE improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Accenture PLC's ROA improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
Gross Profit Margin
Accenture PLC, gross profit margin calculation
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | |||||||
| | Gross profit | ||||||
| | Revenues before reimbursements (Net revenues) | ||||||
| Ratio | |||||||
| | Gross profit margin1 | % | % | % | % | % | % |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors | |||||||
| Automatic Data Processing Inc. | % | % | % | % | % | % | |
Source: Based on data from Accenture PLC Annual Reports
2017 Calculations
1 Gross profit margin = 100 × Gross profit ÷ Revenues before reimbursements (Net revenues)
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Accenture PLC's gross profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Operating Profit Margin
Accenture PLC, operating profit margin calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | |||||||
| | Operating income | ||||||
| | Revenues before reimbursements (Net revenues) | ||||||
| Ratio | |||||||
| | Operating profit margin1 | % | % | % | % | % | % |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors | |||||||
| Automatic Data Processing Inc. | % | % | % | % | % | % | |
| Operating Profit Margin, Sector | |||||||
| Support Services | % | % | % | % | % | % | |
| Operating Profit Margin, Industry | |||||||
| Industrials | % | % | % | % | % | % | |
Source: Based on data from Accenture PLC Annual Reports
2017 Calculations
1 Operating profit margin = 100 × Operating income ÷ Revenues before reimbursements (Net revenues)
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Accenture PLC's operating profit margin improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
Net Profit Margin
Accenture PLC, net profit margin calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | |||||||
| | Net income attributable to Accenture plc | ||||||
| | Revenues before reimbursements (Net revenues) | ||||||
| Ratio | |||||||
| | Net profit margin1 | % | % | % | % | % | % |
| Benchmarks | |||||||
| Net Profit Margin, Competitors | |||||||
| Automatic Data Processing Inc. | % | % | % | % | % | % | |
| Net Profit Margin, Sector | |||||||
| Support Services | % | % | % | % | % | % | |
| Net Profit Margin, Industry | |||||||
| Industrials | % | % | % | % | % | % | |
Source: Based on data from Accenture PLC Annual Reports
2017 Calculations
1 Net profit margin = 100 × Net income attributable to Accenture plc ÷ Revenues before reimbursements (Net revenues)
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Accenture PLC's net profit margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
Return on Equity (ROE)
Accenture PLC, ROE calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | |||||||
| | Net income attributable to Accenture plc | ||||||
| | Total Accenture plc shareholders' equity | ||||||
| Ratio | |||||||
| | ROE1 | % | % | % | % | % | % |
| Benchmarks | |||||||
| ROE, Competitors | |||||||
| Automatic Data Processing Inc. | % | % | % | % | % | % | |
| ROE, Sector | |||||||
| Support Services | % | % | % | % | % | % | |
| ROE, Industry | |||||||
| Industrials | % | % | % | % | % | % | |
Source: Based on data from Accenture PLC Annual Reports
2017 Calculations
1 ROE = 100 × Net income attributable to Accenture plc ÷ Total Accenture plc shareholders' equity
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | Accenture PLC's ROE improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
Return on Assets (ROA)
Accenture PLC, ROA calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | |||||||
| | Net income attributable to Accenture plc | ||||||
| | Total assets | ||||||
| Ratio | |||||||
| | ROA1 | % | % | % | % | % | % |
| Benchmarks | |||||||
| ROA, Competitors | |||||||
| Automatic Data Processing Inc. | % | % | % | % | % | % | |
| ROA, Sector | |||||||
| Support Services | % | % | % | % | % | % | |
| ROA, Industry | |||||||
| Industrials | % | % | % | % | % | % | |
Source: Based on data from Accenture PLC Annual Reports
2017 Calculations
1 ROA = 100 × Net income attributable to Accenture plc ÷ Total assets
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Accenture PLC's ROA improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
