Accenture PLC (NYSE:ACN)

The analysis of the quarterly financial ratios reveals notable fluctuations and certain consistent patterns over the observed periods.

Payables Turnover

The payables turnover ratio demonstrates a general declining trend from late 2020 through mid-2021, decreasing from 20.16 to 15.03. Following this trough, the metric exhibits a moderate recovery and fluctuates mostly between approximately 16 and 19 in the subsequent periods. Peaks were observed near early 2024, reaching above 19, but a drop occurs again toward the end of the dataset, falling below 17. This variation suggests changes in the company’s payment cycle and supplier management, with periods of faster and slower payment to suppliers.

Working Capital Turnover

This ratio exhibits considerable volatility across the quarters. Starting from a moderate level of 7.7, it sharply increases from mid-2021 to early 2024, peaking at an exceptionally high value of 34.49 in mid-2024. This indicates a significant improvement in the efficiency of using working capital to generate revenue during this period. However, shortly after this peak, the ratio drops back sharply to levels under 9, stabilizing roughly between 7.9 and 8.7 toward the end. Such spikes and declines indicate substantial changes in either working capital management or revenue patterns, with a pronounced one-time efficiency or operational change in the early 2024 period.

Average Payables Payment Period

The average payables payment period is relatively stable compared to the other ratios, fluctuating within a narrow bandwidth mostly between 19 and 24 days. The period lengthens gradually from 18 days in late 2020 to around 22-24 days in most quarters, with slight reductions observed around early 2024. This relatively steady range suggests consistent payment policies or terms with suppliers, despite some periods of marginal acceleration or delay in disbursements.

Overall, the data indicates dynamic working capital management with distinct episodes of improved efficiency in working capital utilization, contrasted by a generally consistent approach to supplier payments reflected by stable payment periods. The payables turnover ratio corroborates these observations, showing moderate oscillations but no extreme deviations outside a defined range.

Cost of Services

The cost of services has shown a generally upward trend over the periods analyzed. Starting from approximately 7.86 billion USD in November 2020, it increased steadily, reaching values above 11 billion USD by mid-2024 and further rising to approximately 12.55 billion USD by November 2025. The increments are consistent, reflecting a gradual increase in operational expenses, with no significant reversals or dips observed after an initial period of moderate growth.

Accounts Payable

Accounts payable generally increased over the timeframe, beginning at approximately 1.51 billion USD and climbing to nearly 2.97 billion USD by the last reported period. There are several fluctuations: a notable rise from late 2023 to mid-2024, peaks around August 2024, followed by a slight dip, and then another increase near the end of the dataset. This pattern indicates growing obligations to suppliers or vendors, albeit with some variability likely due to changes in purchasing cycles or payment terms.

Payables Turnover Ratio

The payables turnover ratio exhibits some volatility but remains relatively stable over the full period, fluctuating mainly between approximately 15 and 20. It starts high at around 20 in late 2020, declines to the mid-teens by late 2021, subsequently oscillates with peaks close to 19.5 in early 2024, and then trends slightly downward to around 16 by November 2025. This indicates that while the company’s efficiency in paying its suppliers has varied, it generally maintains payments within a relatively consistent turnover rate, reflecting stable credit management practices despite changes in accounts payable balances.

Overall Insights

The financial data reflects a company experiencing steady growth in cost of services and accounts payable balances, implying increasing scale of operations and supplier engagement. The payables turnover ratio’s stability suggests the company maintains disciplined payment terms and supplier relations despite expansion. Fluctuations in accounts payable values could be attributable to operational seasonality or strategic working capital management, but no alarming trends are evident from the turnover ratio. The data collectively points to a growing but well-managed operational cost and supplier payment environment over the analyzed quarters.

The analysis of the quarterly financials reveals several noteworthy trends in working capital, revenues, and working capital turnover ratios over the periods assessed.

Working Capital

Working capital exhibits considerable fluctuations over the timeline, initially decreasing from over 5.8 billion USD down to approximately 3.4 billion USD by late 2021. Subsequent quarters experience moderate recovery, but a notable decline occurs again in early 2024 to below 2 billion USD. Remarkably, a significant surge is observed starting in late 2024 with working capital rising sharply above 8 billion USD and remaining relatively elevated, though exhibiting slight decreases towards the final periods.

Revenues

Revenues demonstrate a generally upward trajectory throughout the periods assessed, increasing from roughly 11.76 billion USD to over 18.7 billion USD by late 2025. Despite some quarters showing minor dips or stabilization, the overall pattern remains positive, indicating consistent growth in revenue generation capacity.

Working Capital Turnover Ratio

The working capital turnover ratio shows substantial variability. Early in the timeline, it trends upward sharply, peaking above 34 in mid-2024, suggesting a significant efficiency improvement in using working capital to generate sales. However, following this peak, the ratio declines and stabilizes between approximately 7.9 and 8.7 towards the end of the timeline. This pattern may reflect fluctuations in operational efficiency or working capital management, possibly influenced by the corresponding changes seen in working capital and revenues.

Overall, the data indicates a pattern of growing revenues combined with periods of fluctuating working capital levels and efficiency as measured by turnover ratios. The sharp increase and subsequent normalization in turnover ratio around 2024 could imply strategic changes in working capital management or shifts in business operations affecting liquidity and operational effectiveness. Continued monitoring of these metrics would be essential to understand the underlying factors driving these changes and to maintain balanced growth and operational efficiency.

Payables Turnover Ratio

The payables turnover ratio exhibits a fluctuating trend over the observed periods. Initially, the ratio starts relatively high at 20.16 and then declines gradually, reaching a low point around 15.03. This is followed by a recovery phase where the ratio increases again, peaking near 19.54. In the latter periods, the ratio shows variability, fluctuating mostly between 16 and 18, with occasional dips and rises. This suggests varying efficiency in managing payables, with periods of faster turnover interspersed with slower payment cycles.

Average Payables Payment Period

The average payables payment period generally mirrors the inverse pattern of the payables turnover ratio, as expected. It begins at 18 days and increases steadily to approximately 24 days, indicating slower payment to suppliers during that phase. Subsequently, the payment period decreases somewhat, oscillating between 19 and 23 days. Towards the end of the timeline, the average payment period stabilizes around 21 to 23 days, suggesting a moderate and stable payment behavior relative to earlier periods.

Overall Analysis

The relationship between payables turnover and average payment period corresponds to normal financial dynamics, where an increase in payment days tends to lower the turnover ratio, and vice versa. The observed fluctuations imply that the company experienced periods of both accelerated and delayed payments, possibly due to changing cash management strategies or operational requirements. The stability in the latter periods may indicate a more consistent approach to managing payables, balancing supplier relationships with cash flow optimization.