Accenture PLC (NYSE:ACN)

Operating Income

The operating income for North America demonstrates a generally upward trend over the observed six-year period. Starting at approximately 3.11 billion US dollars in 2019, the figure shows a slight increase in 2020, followed by more substantial growth in 2021 and 2022, peaking just under 5 billion US dollars. Although there is a decrease noted in 2023, the value rebounds again in 2024 to reach a new high, reflecting an overall strengthening in operating profitability.

Revenues

Revenues consistently increase each year, indicating sustained top-line growth. Beginning at nearly 20 billion US dollars in 2019, revenues progress steadily to about 30.7 billion US dollars by 2024. This upward movement reflects consistent sales expansion within the North American segment, with particularly notable increments between 2020 to 2022 and more moderate growth thereafter.

Segment Profit Margin

The segment profit margin maintains relative stability but exhibits some fluctuation. It begins at 15.55% in 2019 and decreases slightly in 2020 to 15.11%. Following this, the margin improves, reaching over 17% in 2022, suggesting enhanced operational efficiency or favorable cost management during this period. However, the margin dips significantly in 2023 to 14.77%, before recovering to 16.11% in 2024. This pattern indicates variability in profitability relative to revenue, with possible influences from changing cost structures or market conditions.

Summary

Overall, the financial metrics depict a North American segment with growing revenues and generally improving operating income, supporting enhanced profitability despite some variations in the profit margin. The data suggests effective operational management contributing to increased earnings, notwithstanding the slight volatility in margins and a temporary dip in operating income during 2023.

The analysis of the EMEA reportable segment over the six-year period reveals several noteworthy trends in both financial performance and profitability metrics.

Revenues

Revenues displayed a general upward trajectory, growing from approximately 14.7 billion US dollars in 2019 to about 22.8 billion US dollars in 2024. This represents a significant increase, with particularly strong growth observed between 2020 and 2022. The revenue growth rate, however, appears to moderate slightly after 2022, indicating a deceleration in expansion pace.

Operating Income

Operating income exhibited variability but an overall increasing trend. Starting at roughly 2.0 billion US dollars in 2019, it decreased in 2020 but then steadily increased each year, reaching about 2.8 billion US dollars in 2024. This reflects a recovery and strengthening profitability at the segment level after the initial dip in 2020.

Segment Profit Margin

The segment profit margin showed fluctuations within a relatively narrow range. It declined from 13.7% in 2019 to a low of 11.14% in 2023, reflecting decreasing profitability relative to revenue during that period. In 2024, the margin recovered somewhat to 12.29%, suggesting improved operational efficiency or favorable cost structure changes. Nonetheless, the margin in 2024 remained below the peak level recorded in 2019.

Overall, the data indicates that while revenues have expanded significantly, the segment has faced challenges in maintaining consistent profit margins. The recovery in operating income and margin in the latest period may imply ongoing efforts to enhance profitability amid a complex business environment.

The financial performance of the "Growth Markets" segment over the analyzed periods reveals several notable trends in revenues, operating income, and segment profit margins.

Revenues

Revenues demonstrated a consistent upward trajectory from August 31, 2019, reaching a peak in August 31, 2023. Beginning at approximately $8.53 billion in 2019, revenues increased each year until 2023, where they peaked at about $11.52 billion. However, there was a slight decline in the most recent period ending August 31, 2024, with revenues falling to roughly $11.34 billion. Despite this minor downturn, revenues remained significantly higher compared to the starting point in 2019.

Operating Income

Operating income experienced moderate growth during the initial years but displayed some volatility thereafter. It rose from approximately $1.18 billion in 2019 to a high of about $1.87 billion in 2022. After that, it slightly declined over the last two periods, dropping to nearly $1.85 billion in 2023 and further to approximately $1.84 billion in 2024. This suggests some pressure on operating profitability in the last two years, despite overall growth from the base year.

Segment Profit Margin

The segment profit margin showed fluctuations throughout the years. After starting at 13.88% in 2019, it peaked at 17.27% in 2020, indicating a substantial improvement in profitability relative to revenues. This margin then decreased to 14.65% in 2021 before recovering somewhat to 16.48% in 2022. In the last two years, it has stabilized in the range of 16.08% to 16.23%, reflecting relatively consistent profitability although slightly below the recent peak.

Overall, the segment exhibits strong revenue growth, particularly notable from 2019 through 2023, with a modest reversal in the latest period. Operating income growth aligns generally with revenue trends but indicates some margin pressure in recent years. Profit margins, while variable, have stabilized after some volatility, pointing toward a relatively steady operational efficiency in recent periods.

Operating Income

The operating income exhibited an overall upward trend from 2019 to 2024, increasing from approximately 3.1 billion USD in 2019 to nearly 5.0 billion USD in 2024. There was a notable rise between 2020 and 2022, peaking at nearly 5.0 billion USD in 2022, followed by a decline in 2023, and a recovery again in 2024.

Net Assets

Net assets showed fluctuations over the periods analyzed. Starting at around 2.9 billion USD in 2019, they declined steadily through 2021 reaching approximately 1.9 billion USD. Subsequently, a significant increase occurred in 2022, with net assets rising sharply to over 3.9 billion USD, followed by continued growth through 2024 to approximately 4.6 billion USD.

Segment Return on Assets (ROA)

The segment ROA displayed considerable variability. It began at 106.3% in 2019, increased to a peak of 210.16% in 2021, indicating strong profitability relative to asset base during that year. However, the ROA declined in the following years, settling at around 107.63% in 2024, a level closer to the initial 2019 value but still indicating a solid return.

Summary

The data reveals that operating income generally increased, with a peak in 2022, despite a temporary dip in 2023. Net assets dropped initially but rebounded significantly after 2021, suggesting possible asset restructuring or investments that strengthened the asset base. The segment ROA peaked markedly in 2021, reflecting a period of high operational efficiency or profitability relative to assets, but has since declined toward earlier levels. This pattern suggests cyclicality or specific events influencing asset utilization and profitability over the period.

The analysis of the EMEA reportable segment over the six-year period reveals several noteworthy trends in operating income, net assets, and segment return on assets (ROA).

Operating Income

Operating income demonstrated a generally positive trajectory, increasing from approximately 2.01 billion USD in fiscal year 2019 to about 2.80 billion USD in 2024. Despite a dip in 2020 where it fell to roughly 1.80 billion USD, the subsequent years saw a steady recovery and growth. The highest recorded operating income within this period was in 2024, indicating improved operational performance and possibly increased revenue generation or cost management efficiency in the later years.

Net Assets

Net assets showed considerable variability with an initial decrease from approximately 1.36 billion USD in 2019 to about 1.08 billion USD in 2020. This was followed by a substantial increase to 2.86 billion USD in 2021. After a slight decline in 2022, net assets resumed an upward trend, reaching a peak of approximately 3.44 billion USD in 2024. This fluctuation suggests possible asset revaluation, acquisitions, or changes in liabilities influencing the net asset base.

Segment Return on Assets (ROA)

Segment ROA was notably high in 2019 and 2020, at 148.49% and 166.63% respectively, indicating highly efficient asset utilization during these years. However, there was a sharp decline to 78.18% in 2021, followed by a slight recovery in 2022 to 98.15%. Subsequently, ROA gradually decreased to 88.34% in 2023 and further to 81.5% in 2024. This trend suggests that although the segment increased its asset base substantially, the efficiency of asset utilization decreased over time, possibly due to increased investment in assets that have yet to yield proportional returns.

Operating Income

The operating income demonstrated a generally increasing trend from August 31, 2019, to August 31, 2024, with some fluctuations. It rose significantly from approximately 1,184 million US dollars in 2019 to a peak of about 1,874 million US dollars in 2022. Following this peak, the operating income experienced a slight decline, stabilizing around 1,840 million US dollars by 2024. This pattern indicates periods of strong growth with a modest decrease in the last two years.

Net Assets

Net assets displayed more volatility over the period. Starting at around 814 million US dollars in 2019, there was a notable decrease in 2020 to approximately 620 million US dollars. Subsequently, net assets recovered and increased to roughly 895 million US dollars in 2022, followed by a decline again in 2023 to about 723 million US dollars. In 2024, net assets improved somewhat, reaching close to 790 million US dollars. This oscillation suggests fluctuations in the segment’s asset base or changes in financial structure.

Segment Return on Assets (ROA)

The segment ROA exhibited strong performance throughout the analyzed years, with values consistently above 145%. The ROA peaked in 2023 at approximately 256%, indicating enhanced efficiency in generating income from asset utilization. Despite a slight decrease in 2024 to about 233%, the ROA remained substantially elevated compared to previous years. This high ROA level reflects effective asset management and profitability within the segment.

Revenues

The reported revenues exhibit a consistent upward trend over the six-year period, increasing from approximately US$19.99 billion in 2019 to US$30.74 billion in 2024. Notably, there was a significant increase between 2021 and 2022, where revenues jumped from about US$23.70 billion to US$29.12 billion, indicating robust growth during that interval. Growth continued but at a slower pace in subsequent years.

Net Assets

Net assets display some volatility over the years. Starting at roughly US$2.92 billion in 2019, there was a decline through 2021, reaching a low of about US$1.86 billion. However, a notable recovery occurred in 2022, with net assets rising sharply to approximately US$3.98 billion. This upward trend has continued through 2024, with net assets reaching around US$4.60 billion. The fluctuations suggest changes in asset management or valuation that may have impacted the balance sheet structure.

Segment Asset Turnover

The segment asset turnover ratio shows variability, beginning at 6.84 in 2019 and peaking at 12.75 in 2021. This peak indicates a period of high efficiency in utilizing assets to generate revenue. However, following 2021, the ratio declined substantially to 7.31 in 2022 and continued a slight downward trend to 6.68 by 2024. The reduced turnover ratio after 2021 suggests that asset efficiency in revenue generation has decreased, potentially due to an increase in net assets outpacing revenue growth or changes in asset utilization strategies.

Overall Insights

The data reveals a strong revenue growth trajectory across the period, albeit with slowing momentum in the latest years. Net assets experienced a dip before recovering markedly from 2022 onwards, indicating possible strategic asset investments or reassessments. The segment asset turnover ratio's rise and fall imply a peak in asset utilization efficiency around 2021, followed by a decline, which might warrant further investigation into operational or investment decisions. The interplay between increasing net assets and slowing turnover efficiency highlights an area for focused financial management to maintain optimal asset productivity relative to revenue growth.

Revenues

Revenues demonstrated an overall upward trajectory from 2019 to 2024, starting at approximately 14.7 billion USD and rising to 22.8 billion USD over the period. There was a slight decline between 2019 and 2020, likely reflecting external economic factors, followed by a consistent increase from 2020 onwards. The most significant growth occurred between 2021 and 2022, where revenues increased by almost 2.4 billion USD, indicating strong business expansion within the segment.

Net assets

Net assets exhibited considerable variability, with an initial decline from around 1.36 billion USD in 2019 to approximately 1.08 billion USD in 2020. Subsequently, net assets increased sharply in 2021 to nearly 2.86 billion USD, suggesting major asset acquisitions or revaluations. After a minor decrease in 2022, net assets recovered and showed steady growth through 2023 and 2024, reaching approximately 3.44 billion USD by the end of the period. This pattern indicates active management of asset base and strategic investments within the segment.

Segment asset turnover

The segment asset turnover ratio showed substantial fluctuations during the timeframe. Beginning at 10.84 in 2019, the ratio improved to 13.34 in 2020, reflecting increased efficiency in utilizing assets to generate revenue despite the slight drop in revenues that year. However, from 2021 onwards, there was a notable decline in asset turnover to 5.86, followed by some recovery to 8.23 in 2022 and slight decreases in later years, ending at 6.63 in 2024. This trend suggests that while revenues have grown, the asset base's expansion has outpaced revenue growth, resulting in reduced asset utilization efficiency compared to earlier years.

Revenues

Revenues demonstrate an overall upward trajectory from 8,533,128 thousand US dollars in 2019 to a peak of 11,523,574 thousand US dollars in 2023. After peaking, revenues slightly declined to 11,337,974 thousand US dollars in 2024. This indicates sustained growth over most of the period with a minor reduction in the final year.

Net assets

Net assets show a fluctuating pattern across the years. Starting at 814,358 thousand US dollars in 2019, the value decreased significantly in 2020 to 620,083 thousand US dollars. Following this, there was recovery reaching 894,961 thousand US dollars in 2022 before dropping again in 2023 to 722,770 thousand US dollars. A slight increase occurred in 2024, rising to 789,878 thousand US dollars. Overall, net assets have displayed volatility without a clear upward or downward trend.

Segment asset turnover

The segment asset turnover ratio exhibits variability with a general positive trend. It increased sharply from 10.48 in 2019 to 14.42 in 2020, then decreased to 11.88 in 2021. Subsequently, it rose again to 12.7 in 2022 and peaked at 15.94 in 2023 before a slight decline to 14.35 in 2024. This indicates improving efficiency in utilizing assets to generate revenue, with some fluctuations.

Summary

The segment shows revenue growth over the majority of the period, signaling business expansion. Net assets fluctuated significantly, reflecting possible changes in investment or retained earnings. The segment asset turnover ratio improved overall, suggesting enhanced effectiveness in asset utilization despite some inconsistency. The slight revenue and turnover decreases in the last year may warrant further investigation to understand underlying causes.