Accenture PLC (NYSE:ACN)

Gross Profit Margin

The gross profit margin data begins from May 2019 and demonstrates a consistent upward trend from approximately 30.81% to a peak around 32.61% in August 2024. This gradual increase indicates improved efficiency in managing the cost of goods sold relative to revenue over the periods analyzed. A slight decline is visible in the last few quarters, with the margin decreasing modestly to 32.07% by May 2025, although it remains above early period levels.

Operating Profit Margin

The operating profit margin shows stability from May 2019 through early 2022, fluctuating narrowly around the 14.5% to 15.2% range. Notably, from late 2022 to mid-2023, the margin exhibits a decline from about 15.27% to 13.6%, implying some operational challenges or increased expenses during this time. However, a reversal occurs after this dip, with operating margins recovering steadily to approximately 15.38% by August 2024, signaling improved operational performance in recent quarters.

Net Profit Margin

Net profit margins remain relatively stable throughout the period, initially hovering around 11.0% to 12.0%. A gradual decline is seen starting in late 2022 through mid-2023, with margins dropping to approximately 10.65%. From that point onward, there is a modest recovery with margins climbing back to about 11.61% by August 2024. Overall, this pattern suggests some pressure on profitability in the medium term, followed by stabilization and improvement.

Return on Equity (ROE)

The ROE data shows a general downward trend from around 33.17% in May 2019 to approximately 26.01% by May 2025. The decline is steady, indicating either reduced profitability relative to shareholder equity or increased equity base diluting returns. A more pronounced decrease occurs after mid-2021, with ROE falling from roughly 31.09% to below 27% by mid-2024. This trend suggests challenges in generating high returns for equity investors over recent periods.

Return on Assets (ROA)

Return on assets decreases moderately from an initial figure close to 16.04% in May 2019 to around 12.55% by May 2025. This decline is relatively steady, reflecting less efficient use of assets to generate profits over time. The drop is gradual, with no sudden fluctuations, implying consistent factors impacting asset utilization or profitability.

In summary, profitability margins at the gross and operating levels show some resilience with mild fluctuations and partial recovery after mid-2023. Net profitability mirrors this pattern but with slightly lower margins. Both return on equity and return on assets depict a downward trajectory over the analyzed period, indicating challenges in maintaining earlier high returns. The data suggests that, while operational efficiency and margins have been managed with some success, overall returns to shareholders and asset utilization efficiency have declined steadily and require attention.

Revenues

Revenues display a general upward trend from November 2018 to May 2025, rising from approximately 10.6 billion to over 17.7 billion US dollars. There are occasional slight declines or plateaus between quarters, such as in early 2020 and parts of 2022 and 2024, but the overall direction remains positive, indicating consistent growth over this period.

Gross Profit

Gross profit follows a broadly increasing trajectory in line with revenues, growing from around 3.3 billion US dollars in late 2018 to approximately 5.8 billion by mid-2025. The data highlights some volatility, particularly in early and mid-2020 and again in early 2024, where gross profit dips marginally despite rising revenues, suggesting occasional margin pressure or operational challenges in those specific quarters.

Gross Profit Margin

The gross profit margin, where data is available, reveals a steady improvement over time. Starting at about 30.8% in mid-2019, the margin gradually increases, reaching levels just above 32% by late 2019 and maintaining a narrow range between 31.9% and 32.6% through 2025. This improvement in margin demonstrates enhanced efficiency or favorable cost management relative to revenues.

Overall Insights

The analysis of quarterly data reflects consistent revenue expansion accompanied by an improving gross profit margin. While gross profit shows some fluctuations, possibly due to external economic factors or internal cost variations, the sustained margin increase indicates overall effective management of production or service costs. The rising revenues combined with marginally increasing profitability metrics suggest a strengthening operational performance over the review period.

The financial data reveals several notable trends in operating income, revenues, and operating profit margin over multiple quarters.

Operating Income

Operating income exhibits a generally upward trajectory from 2018 through early 2022, reflecting growth in the company’s core earnings capability. The amounts rise from approximately 1.63 billion US dollars in November 2018 to peak values surpassing 2.6 billion US dollars in late 2021 and mid-2024. However, some quarters show declines or fluctuations, indicative of short-term variability or potential seasonality. For instance, there is a visible dip around late 2022 and early 2023, with operating income falling below 2 billion US dollars before rebounding again. Overall, despite intermittent declines, the long-term trend is increasing.

Revenues

Revenues demonstrate steady growth over the examined periods, moving from just over 10.6 billion US dollars at the end of 2018 to nearly 17.7 billion US dollars by mid-2025. Periodic quarters show small contractions or plateaus, yet these are relatively brief and followed by renewed expansion. The revenue growth trajectory supports the notion of expanding business activity and effective market penetration. The increases are somewhat uneven, which may reflect broader market or economic factors influencing sales or contract timings.

Operating Profit Margin

The operating profit margin maintains a relatively stable range with a mild upward trend over time, predominantly hovering between 14.5% and 15.4%. Margins begin in the range of approximately 14.6% in late 2019 and gradually increase toward 15.3% by mid-2025. There are some quarters where margins slightly dip below this range, notably in early 2023 when margins decrease to around 13.6% but subsequently recover. The consistency and modest growth in operating margin suggest effective cost management or improved operational efficiency amid fluctuating revenue and income figures.

In summary, the company’s financial performance exhibits robust growth in both operating income and revenues over multiple years, complemented by stable and slightly rising operating profit margins. Short-term volatility is present but does not undermine the overarching positive trends, indicating resilient operational execution and financial health.

The quarterly financial data reveals several important trends and patterns related to net income attributable to the company, revenues, and net profit margin over the periods from late 2018 through mid-2025.

Net Income Attributable to the Company

The net income displays a generally positive trend with fluctuations throughout the periods. Beginning around the range of 1.1 to 1.3 million USD in 2018 and early 2019, net income sees recurrent periodic increases and decreases. Notably, from late 2020 onward, there is a trend of higher net income figures, frequently exceeding 1.6 million USD, with some exceptional peaks reaching over 2 million USD, particularly in late 2022 and mid-2023. There is a noticeable spike in net income at multiple points, such as late 2021 and sporadically through 2024 into mid-2025, suggesting some periods of enhanced profitability or operational efficiency. However, several quarters report lower net income relative to adjacent quarters, indicating potential seasonality or external economic factors impacting earnings.

Revenues

Revenues demonstrate steady growth with minor fluctuations across the quarters. Starting slightly above 10.6 million USD in late 2018, revenues grow consistently, surpassing 15 million USD in 2021 and steadily advancing towards near 17.7 million USD by mid-2025. Periodic dips around mid-2020 correlate with a global economic contraction phase, followed by a robust recovery and continued upward trajectory. This steady increase in revenues suggests growing business operations, successful market penetration, or price adjustments. The growth in revenue generally outpaces the fluctuations seen in net income, indicating that although revenue grows steadily, profit margins may be influenced by evolving cost structures or investments.

Net Profit Margin

Net profit margin percentages are available from mid-2019 onward. The margin remains relatively stable, hovering mostly between 10.5% and 12.0%. There is a slight upward trend observable from 11.06% in mid-2019 to a peak around 11.95% in mid-2021, followed by some modest oscillations around the 11% mark. The margin dips slightly below 11% in some recent quarters, before rising again toward the later periods, suggesting overall operational efficiency was maintained with minor pressures on profitability. The stability of the net profit margin alongside rising revenues indicates effective cost management in the context of expanding business volume.

In summary, the data reflects a company with increasing revenue over the analyzed period, accompanied by stable, though slightly variable, net profit margins. Net income trends show growth with some quarterly volatility, possibly reflecting external factors or strategic investments affecting profitability intermittently. The general financial health portrayed is positive with continued revenue expansion and maintained profitability ratios.

The analysis of the quarterly financial data reveals several key trends in profitability and equity for the company over the period from late 2018 through mid-2025.

Net Income Trends

The net income attributable to the company exhibits a general upward trajectory over the full timeframe. Starting at approximately 1,274,720 thousand US dollars in November 2018, the net income experiences fluctuations with interim declines and recoveries but maintains an overall growth pattern. Notable peaks occur around November 2021 (approximately 1,791,024 thousand US dollars) and again in late 2024 and early 2025, reaching values well above 2,000,000 thousand US dollars in some quarters. There is some volatility in quarters such as May 2023 and August 2023, where net income dips lower compared to adjacent periods, indicating possible seasonal or operational influences.

Total Shareholders’ Equity

The total shareholders’ equity consistently increases throughout the observed intervals, indicating sustained capital growth. Beginning at just under 12.7 billion US dollars in November 2018, equity rises steadily with no significant declines, reaching over 30.5 billion US dollars by mid-2025. This trend suggests ongoing accumulation of retained earnings and/or equity infusions, reflecting strong financial foundation and investor confidence over time.

Return on Equity (ROE)

Return on equity shows an initial high range near 33% in early 2019, followed by a gradual decline over subsequent years. While ROE remains robust, consistently above 25% throughout the dataset, a downward trend emerges from roughly 33% in 2019 to the mid-20% range by 2024-2025. This decreasing trend in ROE despite increasing net income and equity levels may suggest that net income growth is not fully proportionate to the expansion of shareholders’ equity or that returns are moderating as the equity base enlarges.

Overall Financial Performance Insights

The data reflects a company that is expanding its equity base and increasing its net income, indicating growth and profitability. However, the declining ROE trend suggests that the efficiency of generating profit from equity is somewhat diminishing over time. This might be due to increased equity issuance, changing business conditions, or higher capital requirements. The consistent increase in both net income (albeit with fluctuations) and equity points to a stable financial profile with potential strategic investments or expansions influencing these metrics.

Net Income Trends

The net income attributable to the company demonstrates a fluctuating yet generally upward trajectory over the observed periods. Initial values near 1.27 million US$ in thousands start with some volatility, experiencing dips and peaks. Notably, from November 2018 through late 2020, net income varies between approximately 1.12 million and 1.5 million US$ in thousands, showing moderate growth with intermittent declines. From late 2020 onwards, there is a more pronounced increase, reaching peaks above 2 million US$ in thousands in several quarters, although there remains some irregularity with occasional downward adjustments. Overall, the net income exhibits growth with varying cyclical fluctuations.

Total Assets Evolution

Total assets consistently increase throughout the timeframe, moving from roughly 26.7 million US$ in thousands to above 63 million US$ in thousands by the final period. The asset base expands steadily quarter over quarter without any noticeable reversals, indicating continuous asset accumulation or valuation increases. This growing asset pool suggests expansion or capital investment activities that enhance the company’s scale and resource capability.

Return on Assets (ROA) Analysis

Return on Assets data is available starting May 31, 2019, showing a moderate decline over the chronicled sequence. Initially, ROA registers at approximately 16%, but this value gradually decreases and stabilizes in the range of about 12.5% to 14% in later periods. The trend suggests that while total assets grow significantly, the efficiency in generating net income per asset unit has slightly diminished over time, reflecting either increased asset base not fully commensurate with net income growth or changes in operating profitability dynamics.

Summary of Financial Health Indicators

The combination of steadily rising asset levels and fluctuating, generally increasing net income points to organizational growth accompanied by some operational volatility. However, the gradual downward trend in ROA suggests that the incremental asset growth may not be fully optimized for profit generation compared to earlier periods. Monitoring asset utilization and improving return efficiency might be warranted to enhance overall financial performance.